U.S. stock indices have been hitting new highs in recent weeks, prompting many to ask if the market has become “overpriced” and, if so, what can we do to mitigate risk? In order to answer these questions, there are several others that must be addressed first, including…
Investment Update – Going Short (Really Short!) No, we haven’t decided to short the stock market — not by a long-shot! — but we have decided to shorten the average maturity of our bond holdings. We’re doing this by swapping all of the DFA 5-Year Global…
Yeske Buie Celebrates Eugene Fama’s Nobel Prize in Economics On October 14, the Royal Swedish Academy of Sciences announced that it had awarded the Prize in Economic Sciences to Eugene Fama, along with Lars Peter Hansen and Robert J. Shiller “for their empirical analysis of…
We’ve spent the past two decades discussing with our clients the insights we’ve gained from studying the work of Eugene Fama, University of Chicago professor and one of the fathers of Modern Portfolio Theory. Over that time, we frequently found ourselves referring to him as a “future…
Debt, Deficits, and Default: Dancing with Disaster The government has now been “shut down” for 11 days and we face the further threat of a default if Congress fails to raise the U.S. debt limit within a week. While the former is painful, ever more so the longer…
The government has now been “shut down” for 11 days and we face the further threat of a default if Congress fails to raise the U.S. debt limit within a week. While the former is painful, ever more so the longer it lasts, the latter would be truly…
Where The Smart Money Is Headed In a recent Barron’s article titled, “Where the Smart Money is Headed,” reporter Beverly Goodman highlights mutual fund manager Dimensional Fund Advisors’ success in attracting a growing number of financial advisors who seek to invest their clients’ money in…
In a recent Barron’s article titled, “Where the Smart Money is Headed,” reporter Beverly Goodman highlights mutual fund manager Dimensional Fund Advisors’ success in attracting a growing number of financial advisors who seek to invest their clients’ money in a more “evidence-based” fashion. The attraction…
What Happened to DOMA and What’s Next? On June 26, in United States v Windsor, the Supreme Court ruled 5-4 that Section 3 of the Defense of Marriage Act (DOMA) was unconstitutional, declaring that, if the citizens of a state voted to recognize and protect a class…