This index fund overview and worksheet link will guide you for your 401k. Index funds are managed through 'full replication' and/or a 'sampling' strategy. Sampling is used with a large index such as the Barclays Aggregate bond index. Sampling may result in tracking error, the variance in return from the index. For replication, tracking error … Continue reading Big Three Index Providers – Evaluation xlxs
If you believe in asset allocation, then this paper (attached) is for you. In their paper "When Diversification Fails," T Rowe portfolio managers, Sébastien Page, CFA, and Robert A. Panariello, CFA, conclude that "One of the most vexing problems in investment management is that diversification seems to disappear when investors need it the most." Their … Continue reading When Diversification Fails
Author and portfolio manager Meb Faber, of "Where the Black Swans Hide," states, "We continue to advocate that investors attempt to avoid declining markets where most of the volatility lies and conclude that market timing and risk management is indeed possible and beneficial to the investor." Faber's findings certainly make a strong case for avoiding … Continue reading Where The Black Swans Hide
The study became the impetus for a company patent, innovation in product options that offered clients growth potential and downside protection, and a company innovation.