Correlation analysis in portfolio management design is overrated. There isn’t much benefit derived from relying on low correlation among asset classes to achieve excess return. The best way to use ...

Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

US stocks are detached from GDP growth; buybacks and incentives boost gains but risk negative real S&P 500 returns over 13 ...

The 60/40 portfolio, rooted in Modern Portfolio Theory, balances equities and bonds to optimize returns relative to risk, but its effectiveness declines during high inflation. Rising stock-bond ...

John Edwards is a licensed attorney with experience in commodities and investments. He provides performance analysis of hedge funds and investors. Suzanne is a content marketer, writer, and ...

In our recent article on the flaws in return on equity, we showed how it has no correlation with several different measures of valuation. However, there is one valuation metric, price-to-book (“P/B”), ...

Certain financial instruments provide information on expectations of future interest rate movements. One relatively new instrument is yield curve options, which allow investors to take financial ...