In an effort to save you time, I have linked to several additional articles of interest that you can come back to later if desired. If you have time, please read these articles as they are chalked full of good information, stories, and lessons. Below, I have included descriptions and explanations of why I included these articles or links in this report. Enjoy and thanks for letting us help you and your family create your plan to accomplish your goals.
- Investment Lessons from 2019 by Larry Swedroe, 1/16/20
In this outstanding paper, Larry outlines 12 Investment lessons the market taught investors in 2019. You may have heard me discuss Larry before, Larry is a talented writer and researcher. I think he does an excellent job at explaining important concepts that investors need to know in easy to understand language. He uses a Factor oriented investment approach, like our CORE+ strategy. He is on the short list of writers I like to read.
In this paper Mr. Arnott and his team help the reader understand that value investing is not dead and by using various quotes and examples from history, along with stories of mistakes investors have made in the past they help readers grasp histories effects on valuations, strategy, and mistakes to avoid. This article is worth the time.
This article lays out expected future returns using Research Affiliates valuation methods. I think it is always a good idea to have an idea of what long-term future returns could look like as you create your investment policy frameworks. For instance, if you are an aggressive investor and the United States is like to produce lower than normal returns in the future what is the maximum or minimum you would want to own in your portfolio?
This short paper looks at the history of the value premium, to understand why investors need to own the value premium & the tradeoffs that must be accepted in order to monetize the 4-5% per year premium. This article will help investors know value has underperformed growth globally the last decade and that these trends are well within normal tolerances.