Commentary

The Buck Stops Here

US dollar cycles are long.

Commentary

Revisiting Our “Horribly Wrong” Paper: That Was Then, This Is Now

Nearly seven years have passed since the publication of our 2016 paper “How Can ‘Smart Beta’ Go Horribly Wrong?”

Commentary

Price-to-Fantasy Ratio: Self-Deception with Forward Operating Earnings

A common error of earnings aggregation from stocks to the market persists.

Commentary

Tesla - Has the Time of Reckoning Come?

Tesla’s shares fell by more than 14% on Tuesday, after plunging by 65% in 2022.

Commentary

History Lessons: How “Transitory” Is Inflation?

The US Federal Reserve Bank’s expectations for the speed of reverting to 2% inflation levels remains dangerously optimistic.

Commentary

Where’s the Beef?

In the 1980s there was a famous TV ad for Wendy’s with the tagline “Where’s the beef?”.

Commentary

Quantifying the Impact of Direct Indexing

We apply five levels of customization to four developed-market equity strategies to quantify the impact of customization (or direct indexing).

Commentary

Carbon Intensity for Climate Mitigation: Clearing Up “Scaling” Confusion

Investors can choose one of two popular scaling methods for carbon emissions comparisons across companies. Our analysis guides investors in making this important decision.

Commentary

No Excuses: Plan Now for Recession

Now is the time to engage in risk management to retain your competitive advantage once the economy emerges from the slowdown.

Commentary

Rising Risk of Stagflation

Trillions of dollars of deficit spending financed by money creation over the past two years caused today’s soaring inflation.

Commentary

Duration Management for the Next 40 Years

Traditional long-only fixed income managers had one of the worst quarters on record in Q1 2022 as higher interest rates left “bottom up” portfolios overweight duration.

Commentary

ESG Is a Preference, Not a Strategy

A portfolio’s return is driven by its investment strategy—a set of decisions that governs allocation and timing of capital among the portfolio’s positions.

Commentary

Inflation Is Here! What Now?

Inflation is rising rapidly, not an unexpected outcome given governments’ pandemic policy response of ballooning deficits and soaring government debt.

Commentary

Did I Miss the Value Turn?

The value rebound that started in September 2020 gave up nearly half its gains by mid-May 2021 as the recovery faltered with the onslaught of the highly contagious Delta variant. But vaccination has proven highly effective, and as the unvaccinated around the world become vaccinated, the prospect of a reinvigorated economy is good. Is now a second chance to rebalance into value stocks?

Commentary

Predicting Equity Returns with Inflation

Rather than predicting what will happen to inflation in the future—a particularly arduous and humbling task—we ask a simple question: What can past inflation dynamics tell us about the equity market’s future returns?