The Issue of Investing: Part 10, Factors of Returns continued: What Has EB Investing Done for Me Lately?
Welcome to the next installment in our series of Joss Financial Group’s EB Investing Insights: What Has EB Investing Done for Me Lately?
In our last piece, “Return Factors That Impact Your Portfolio,” we introduced three stock market factors (equity premium, value premium and the small-cap premium). We also introduced two factor for the bond market (the term premium and the credit premium). These five factors form the backbone for basic portfolio construction. Regardless of market timing or index (or passive) investing, most investment or market returns can be explained by a combination of these five factors. The unexplained returns can be considered “dumb luck” or are still be discovered.
Read it all here=> The Issue of Investing: Part 10, Factors of Returns continued: What Has Evidence-Based Investing Done for Me Lately?
EB Investment Series
Evidence Based Investing: Introduction
Part 1: Market Pricing, The Markets, The Prices, and You and Me
Part 2: Market Pricing Continued, The White Noise of Daily Market Pricing
Part 3: Market Pricing Continued, Financial Experts and Other Make Believes
Part 4: An Introduction to Diversification
Part 5: Diversification Continued, Diversifiable Market Risk
Part 6: The Issue of Investing: Diversification continued, The More the Merrier (or Smoother)
Part 7: The Issue of Investing, Factors of Returns, What Drives Market Returns?
Part 8: Factors of Returns Continued, Constituting Evidence-Based Investing
Part 9: Factors of Returns Continued: Return Factors that Impact Your Portfolio