Trading News

The momentum factor is an isolated characteristic of assets that shows that, on average, winners keep winning. The evidence for momentum is supported by decades of academic and practitioner research. Studies have shown momentum as a far explaining asset returns in the US as far back as the late 1800s and early 1900s. The evidence […]

Below are some well-known trading and investing quotes that encapsulate various aspects of market philosophy, risk management, and trading and investment strategy. We also have some unique quotes in the section after, which have fun applications to trading and investing contexts.   Trading & Investing Quotes “[Many] know the price of everything, but the value […]

Factor ETFs track stocks that share specific characteristics (factors) that academic and institutional/practitioner research has shown explain differences in risk and return. They’re often called “smart beta” ETFs because they blend passive indexing with active selection rules and tilts.  Instead of simply tracking a market-weighted index (e.g., the S&P 500), they focus on measurable traits […]

For many months, U.S. equities have appeared to be heading in one direction – up. However we’ve been crunching key financial metrics and the gap between what investors are paying for U.S. stocks compared to internationally has reached a worrying gap that history tells us may lead to slimmer future returns. Add in a record […]

Factors in finance are systematic drivers of risk and return. They help explain why assets move the way they do and why some earn higher returns or have higher risks than others. They primary exist due to: risk compensation (which means they’re likely to endure and not merely be arbitraged out if discovered) psychological factors […]

We’re looking at the topic of Bitcoin in the context of a balanced portfolio. For this, we’re looking at standard portfolios that are a mix of diversified stocks and bonds, with 15% gold. Then we add Bitcoin in allocations of 10%, 5%, and 3% and look at the results. After that, we look more carefully […]

What are the highest-returning – but sustainable – ETFs? What we’re doing in this article isn’t just listing option-income funds (like JEPI or QYLD) or levered ETFs (which aren’t appropriate beyond day trading purposes due to tracking error) but ETFs that are more strategically engineered to provide higher returns. These could include overlays, alt exposures, […]

When it comes to investing, few names carry as much weight as Warren Buffett, as one of the world’s most successful investors. Over the decades, Buffett has developed an investment approach that has made him one of the world’s most successful people by conventional measures. What especially stirs up public interest in Buffett is his […]

Exchange rates have always been one of the noisiest variables in global finance.  If you trade interest rates, the rate is either there by date X or it’s not. If you trade bonds, they move based on duration and sometimes credit risk, but the payout is usually known ahead of time. But exchange rates are […]

Why have small-cap stocks historically outperformed large caps? And does this still hold true today? That’s the basis of the size factor, nested in the broader area of finance known as factor investing. Factor investing fundamentally is about isolating specific characteristics of assets – e.g., size, value, quality, low volatility – to harvest either: outperformance […]