Research Roundup: Buybacks, CAPE, Earnings Forecasts, and Rebalancing Strategies
Here are the best things I read this week, their main takeaways, and the most important chart from each piece:
Book Summary of Taleb’s Antifragile
Nassim Taleb is a polarizing guy. He gets in Twitter fights, eats a lot of squid ink pasta, but also has many fans. I enjoy his writing and, among all his books, think Antifragile is the most complete description of his philosophy on life and markets. Here are my main takeaways: The opposite of fragility…
Lump Sum or Dollar Cost Averaging? Neither – Try VA
Value averaging is an effective alternative to lump sum investing or dollar cost averaging. I personally use it whenever new clients want to spread out initial allocations over time.
Key Takeaways from The Hour Between Dog and Wolf
This book explains the link between hormones and markets and shows how an investor’s physiology changes throughout a market cycle.
Which Investments Have the Highest Volatility Tax?
Investors earn compound returns, not average returns. The difference between compound and average returns is called the “volatility tax”. This post shows the historical volatility tax for major asset classes.