Recommended articles and useful data. The level classification is based on the foreword of
Level0
Building Your Edge: How to Choose the Right (Investing) Books?
Navigating Bear Markets: A Guide for All Investors
How to Choose the Perfect ETF for Long-Term Investment
Why Do Very Smart People Make Mistakes?
Understanding Bond Fund Terminology
Historical Returns on US Stocks, Bonds and Bills
Equity, Bond Real Returns and Risk Premiums 1900-2019
Level1
We ran the numbers on market timing. Our findings? There’s a high cost to waiting for the best entry point. A research from Schwab.
DCA vs Lump Sum, which is better?
What is the Safe Withdrawal Rate in Retirement?
Safe Withdrawal Rates by Equity Allocation as of 2023
A rebalancing strategy based on reasonable monitoring frequencies (such as annual or semiannual) and reasonable allocation thresholds (variations of 5% or so) is likely to provide sufficient risk control. Best Practices for Portfolio Rebalancing
Which Institution Has The Best Asset Allocation Model? A wrong question.
The Worst Years Ever For a 60/40 Portfolio
Factor Investing 101 and the real world: MSCI World Factor Performance
ETF Portfolio Tools:
Historic CAPE Ratio by country
Level2
Of the 34 tactical allocation funds that existed in April 2013, only 12 were still around a decade later, and not a single one had a higher return or Sharpe ratio than a simple 60/40 balanced fund. Real world performance of TAA funds.
Level3
What I Learned About Investing in 2022
What Are the Best Value Ratios?
Bessimbinder found just 86 stocks accounted for half of all wealth creation in the U.S. stock market going back to 1926. All of the wealth creation in that time came from just 4% of stocks. Nearly 60% of stocks failed to beat T-bill returns over their lives. Close to 40% of stocks barely beat T-bills.
Since 1926, the median ten-year return on individual U.S. stocks relative to the broad equity market is -7.9%, underperforming by 0.82% per year. For stocks that have been among the top 20% performers over the previous five years, the median ten-year market-adjusted return falls to -17.8%, underperforming by 1.94% per year. Since the end of World War II, the median ten-year market-adjusted return of recent winners has been negative for 93% of the time. The case for diversifying concentrated positions in individual stocks, particularly in recent market winners, is even stronger than most investors realize. Power Laws in the Stock Market
Dominic Feron 