Blog Archives

Should Correlations Drive Your Investment Decisions?

Do stock market correlations matter?

Statisticians use correlations (or cross-correlation) to measure the relationship between asset classes or investments. The general idea is to better understand the similarity or dissimilarity in how investments perform against each other and to build a portfolio of investments that can benefit.

The CBOE S&P 500 Implied Correlation Index (ChicagoOptions:^KCJ) also known as the “ICI”  

Read more ›

Tags: , , , , ,

Long-Term Investing: A Cautionary True Life Tale

The financial services industry’s bias toward long-term investing as the magic formula to the problems that face the individual investor is wrong and misleading.

For example, illustrating unrealistic long-term time horizons of 100 or 200 years of equity returns (NYSEARCA:VTI) to prove that we should all be long-term investors is a common practice among both academicians and the financial advisor community.

Read more ›

Tags: , , , , , , , ,

One FREE Month of ETF Premium

Click the report icon to sign up and receive one FREE month of ETF Premium Membership.

Show Buttons
Hide Buttons

Get One FREE Month of ETF Premium

Simply provide your email address and we'll give you One FREE Month of ETF Premium!