Larry Swedroe Blog | Talkmarkets | Page 1
Director of Research, The Buckingham Family of Financial Services

Larry Swedroe is the Director of Research, Board of Managers and Lead Director at The Buckingham Family of Financial Services.

Since joining the firm in 1996, Director of Research Larry Swedroe has spent his time, talent and energy educating investors on the benefits of evidence-based ... more


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The Quality Factor — What Exactly Is It?
While there is no consistent definition of the quality factor, quality stocks typically have the following characteristics: low earnings volatility, high margins, high asset turnover, low financial leverage, low operating leverage, and low risk.
The Challenge Facing ESG Investors
The data used to construct environmental, social and governance (ESG) portfolios differs widely among providers, meaning that funds may not be aligned with your clients’ objectives and beliefs. 
Fashions And Investment Folly
In investing, as in fashion, fluctuations in attitudes spread widely without any apparent logic.
The Surprising Benefits Of Working Longer
Americans are working longer for financial reasons – they can’t afford to retire. But what few realize are the enormous economic and social benefits that accrue to those workers and the companies they serve. 
Fact And Fiction About Low-Risk Investing
Low-risk securities have historically delivered higher risk-adjusted returns than high-risk assets.
The Forgotten History Of Value Investing
Given the dramatic underperformance of value stocks since 2017, it’s understandable that many are abandoning the strategy, believing that the premium has vanished.
The Impact Of Emotions On Risk Tolerance
Behavioral finance is the study of human behavior and how that behavior leads to investment errors – investors do not optimally trade off risk and expected returns to maximize the utility of their end-of-period wealth.
Is There A Tail Risk Premium In Stocks?
It has been well documented both that stock returns have much fatter tails than a normal distribution would generate, and that tail events occur much more frequently than a normal curve would predict.
Volatility Expectations And Returns
A large body of research demonstrates that while past returns do not predict future returns, past volatility largely predicts future near-term volatility.
The Idiosyncratic Volatility Puzzle: Then And Now
One of the interesting puzzles in finance is that stocks with greater idiosyncratic volatility (IVOL) have produced lower returns
EC Global Impact Of Investor Home Country Bias
A large body of research demonstrates that “familiarity breeds investment.”
Individual Stock Investing Increases Risk
Individual stock ownership offers both the hope of great returns and the potential for disastrous results.
Can We Explain The Low Volatility Anomaly?
One of the big problems for the first formal asset pricing model, the CAPM, was that it predicts a positive relation between risk and return. But empirical studies have found the actual relation to be flat, or even negative.
Are Puts Efficient At Protecting Downside Risk?
Put options are rightly viewed as the most direct way to protect against losses in equities.
Mutual Fund Flows And Factor Premiums
Mutual fund investors are largely ignorant about systematic risks when allocating capital among actively managed equity mutual funds, causing them to trade based on noise, not fundamentals.
Does Leverage Explain The Investment Premium?
Research demonstrates that the investment factor has explanatory power for the cross-section of stock returns, with high-investment firms tending to underperform low-investment firms.
1 to 16 of 21 Posts
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