Value Stocks and Dividends

It’s widely known that value stocks have outperformed growth stocks over the years. Less known is why this “value premium” has occurred. There are many theories that attempt to explain the recurring phenomenon but so far none have been conclusive. Recent studies by Research Affiliates (RA) find that dividends may be an important key to the mystery.

Any Monkey Can Beat the Market

Give a monkey enough darts and they’ll beat the market. So says a draft article by Research Affiliates highlighting the simulated results of 100 monkeys throwing darts at the stock pages in a newspaper. The average monkey outperformed the index by an average of 1.7 percent per year since 1964. That’s a lot of bananas! [...]

Investing in Three Dimensions (Part 2 of 2)

In Part 1 of this blog, we explored the theory behind Fama-French Three-Factor Model.  In Part 2, we explore its practical application. The Fama-French Three-Factor Model can be used two ways. First, it can be used to peer into portfolio returns and analyze results. Second, it can be used to engineer portfolios based on refined [...]