CBS Eye on the World with John Batchelor: Commodities go to war @RealConstable; Time Magazine

 By SIMON CONSTABLE

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Photo by Paz Arando on Unsplash

Financial Analysts Journal: Targeting Retirement Security with a Dynamic Asset Allocation Strategy

By SIMON CONSTABLE

Rule-based dynamic changes to asset allocation to attain desired income levels improve performance relative to traditional static asset allocation models or age-based target-date funds. Read more here.

CFA, Public domain, via Wikimedia Commons

Financial Analysts Journal: Levered and Inverse Exchange-Traded Products -- Blessing or Curse?

By SIMON CONSTABLE

Inverse and levered ETPs are neither effective hedging tools nor useful as buy-and-hold investments. They are effective only when used for short-term bets on the direction of an asset. They are ill understood and inherently unstable. Read more here.

Crowds Gathering Outside NYSE 

Associated Press, Public domain, via Wikimedia Commons

Financial Analysts Journal: Risk Management and Optimal Combination of Equity Market Factors

 By SIMON CONSTABLE

Combining factors in a multi-factor portfolio using forecast risk management can add substantially to investment returns. Backtesting showed such a strategy run over 54 years would have made annualized returns of 10.79%, vs. 7.77% for a similar non-risk-managed portfolio. Read more here.

NYSE

JohnWBarber, Public domain, via Wikimedia Commons

Financial Analysts Journal: Retirement Income Sufficiency through Personalised Glidepaths

 By SIMON CONSTABLE

Retiree income can be maximised by shifting focus from targeting wealth at retirement to income sufficiency through retirement with the use of personalised glidepaths instead of approaches that use demographic averages. Read more here.

Balon Greyjoy, CC0, via Wikimedia Commons

Financial Analysts Journal: Enhanced Portfolio Optimization

By SIMON CONSTABLE

Managers can improve the performance of the mean–variance approach by using enhanced portfolio optimization (EPO). EPO accounts for the noise in investors’ estimates of risk–return and, as a result, increases risk-adjusted performance. Read more here.

CFA Institute, Copyrighted free use, 

via Wikimedia Commons

Financial Analysts Journal: Factor Exposure Variation and Mutual Fund Performance

 By SIMON CONSTABLE

Mutual fund managers who frequently change exposure to investment factors (market, size, book-to-market, and momentum) perform significantly worse than those who make fewer changes. Read more here.

Katrina.Tuliao, CC BY 2.0, via Wikimedia Commons