More on Related Themes
2012-06-19 (Don't Always) Follow the Yellow Brick Road by Mariko Gordon (Article)
There is a lot of 'twitchy investing' going on in today's market. Some signals should be ignored your information should be gathered firsthand, when possible.
2012-06-05 The Father of Efficient Markets: Is Warren Buffett Smart or Lucky? (Video) by Dan Richards (Article)
Eugene Fama is generally regarded the father of modern finance. His research has expanded upon the capital asset pricing model to identify the value and small-capitalization contributions to risk. Dan Richards spoke with him on May 1, the day before his guest talk at the CFA Institute annual meeting. This is the video of the interview.
2012-04-23 Dow Direction Dictates by Jeffrey Saut of Raymond James Equity Research
This week we will see more major companies reporting earnings. From our research universe, stocks that are favorably rated by our fundamental analysts and appear positive on our proprietary algorithms are: Brinker ; Baidu; Pultegroup; and Caterpillar. For the past few weeks I have wrongly suggested that my sense is the S&P 500 (SPX/1378.53) will remain mired in the 1385 1425 consolidation zone. Subsequently, the SPX dropped below that envisioned zone, yet has rallied back into the 1375 1385 zone, which has now become an overhead resistance level.
2012-02-27 Oil Prices vs Energy Stocks by Team of Bespoke Investment Group
Earlier this week we highlighted the growing divergence between the Dow Jones Industrial Average and the Dow Transports. While it is a negative divergence on a technical basis, given the breakout in the price of oil in recent days, it is understandable that the Transports would be underperforming. While Transports are big consumers of oil and see a negative impact from higher energy prices, energy producers who sell the energy should see a positive impact, and that is what we have been seeing...to a degree.
2012-02-16 Mega Caps: Where the Profits Are by Russ Koesterich of iShares Blog
Despite mega caps recent outperformance, the stocks remain cheap on both a relative and absolute basis. Heres more evidence to add to the case for mega caps. The current discount on mega-cap stocks is particularly hard to justify given that these large companies continue to be extremely profitable despite todays tepid economic environment. In fact, the return on equity (ROE) for the S&P 100 index is slightly below 29%, the highest level since 2000 and well above the long-term average of 23%.
2012-01-31 Do Unresolved 2011 Economic Ailments Portend a Similar 2012? by Team of Managers Investment Group
Now updated through 4Q. This compendium provides an historical perspective of economic data compared to today's results, and provides comments on any developing trends. We also include a synopsis of financial markets results. The OTOTM Chart Book is designed with easy-to-read graphics to tell a story and help you visualize the changes taking place in today's economy.
2012-01-13 Demographic Headwinds: The Decline of Peak Spenders by Doug Short of Advisor Perspectives (dshort.com)
"S&P 500 to Fall 30-50% in 2012." Dent's grim forecast is primarily based on the demographics of the peak spending years, an age cohort he refers to in the interview as 46-50. Economists and market analysts often think of retiring boomers as the primary drag on the economy with their the transition from the accumulation to the decumulation phase of their life-cycle. But if we understand of the crucial role of consumption for our economic health, a significant decline in the number of peak spenders is a demographic headwind that will challenge us for years to come.
2012-01-03 The Best of Carl Richards by Carl Richards (Article)
Carl Richards' new book, The Behavior Gap, goes on sale today. He shared with us his 10 favorite drawings.
2011-09-06 Time-Tested Investment Strategies for the Long Term by American Century Investments (Article)
Recent market volatility, changing economic conditions and unexpected world events have lead to heightened uncertainty among investors. Use this retail-approved article to encourage your clients to stay the course. It will help you explain to clients that while there may be short-term losses, historically the market rewards long-term investing.
2011-08-09 Debunking Four Common Target-Date Fund Misconceptions by American Century Investments (Article)
Despite their growing popularity, target-date funds are still not entirely understood. Learn the answers to four of the most common misconceptions from our investment professionals in this new white paper.
2011-08-01 FW: F.A.S.T. Graphs video blog on 3M Co. (MMM) and Emerson Electric Co. (EMR) by Chuck Carnevale of F.A.S.T. Graphs
At the special request of readers of our recent blog post titled Six High-profile Industrials with Staggering Three-year Performance? (Part 1) we have prepared a short video blog looking at 3M Corp. and Emerson Electric through the lens of our F.A.S.T. Graphs research tool. Click this link to view the video: youtu.be/EJrIx9sxhQ4
2011-07-26 Jeremy Siegel - Why I Changed My Mind about Index Funds (Video) by Dan Richards (Article)
Jeremy Siegel, the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania, discusses what caused him to reject capitalization-weighted market indexes and what he chose instead. This is a video of the interview.
2011-06-28 Smart Risk Taking: Realigning Client Portfolios with Their Long-Term Goals by American Century Investments (Article)
The financial crisis sparked widespread flight from risk. Although the crisis is over and equity prices have rebounded, many investors have not yet returned to the capital markets. For them, the safe-haven appeal of money market funds remains strong. In this paper, American Century Investments® proposes a strategy of "smart risk taking," an active asset management approach that seeks to identify, understand, manage, and be consistently rewarded for risk.
2011-06-07 Strategist Year-End S&P 500 Price Targets by Team of Bespoke Investment Group
Below we highlight the most recent year-end S&P 500 price targets. Just two strategists currently have year-end targets below the actual level of the S&P 500 at the moment. Morgan Stanley is looking for a year-end S&P 500 level of 1,238, while Credit Suisse is looking for 1,275. On the bullish side, Deutsche Bank remains above any other firm with its price target of 1,550. Also, a chart of the S&P 500 along with the average year-end strategist price target as the year has gone on. While the market has really taken a downturn in recent weeks, strategists have yet to lower their targets.
2011-06-07 The Federal Debt Limit, the Markets, and Taxes by Andy Friedman of Washington Update
Yesterday I appeared on CNBC Squawk Box to discuss the ongoing debate about raising the government borrowing limit. I made three points: 1. Congress is likely to enact meaningful deficit reduction legislation only upon the occurrence of an external "forcing event", such as the rating agencies downgrading U.S. debt or China slowing purchases due to concern about our fiscal situation.2. Government stimulus and QE2 contributed to the market run-up over the past few years. But this month -- for the first time in almost three years -- the economy must stand on its own, without any stimulus help
2011-05-10 Inflation Field Manual: A Guide for a Changing World by American Century Investments (Article)
We examine the competing forces at work that will affect inflation. On the one hand, a whole host of factors are currently constraining inflation. On the other hand, US monetary and fiscal policies and a number of global economic imbalances suggest an environment of high and rising inflation. The outcome of this debate is important for financial assets, whose performance turns on the difference between expected and actual inflation-it is when inflation surprises to the upside that stocks and nominal bonds typically underperform and inflation-protected assets do best.
2011-04-06 The 10-Year Earnings Picture by Team of Bespoke Investment Group
Here at Bespoke, we have a huge database that has every US earnings report going back to 2001. For each earnings report, we have how earnings and revenues came in versus expectations, any guidance that was issued, and in-depth price action analysis. From our database, we're able to combine all of the earnings information for individual stocks to come up with macro earnings trends as well. Since 2001, there have been more than 64,000 quarterly earnings reports. Of those 63% of companies have beaten consensus analyst earnings per share estimates, while 25% have missed earnings estimates.
2011-02-22 John Campbell on the Proposed Squam Lake Reforms - Video by Dan Richards (Article)
In this interview, John Campbell, chairman of the economics department at Harvard, discusses his research into the underlying drivers of securities prices, and the key recommendations for reforming the financial system, based on his participation in the Squam Lake Group. This is a video of the interview.
2011-01-25 The Case for a Retirement Plan by American Century Investments (Article)
Defined contribution plan sponsors have an opportunity to improve retirement readiness for participants by rebooting their existing plan using target-date funds as a qualified default investment alternative (QDIA). This is made possible by the Pension Protection Act of 2006, giving certain diversified, long-term investment products QDIA status. Senior Vice President Rich Weiss and Client Portfolio Manager Nancy Pilotte make a case for re-evaluating existing retirement plans for a potential reboot using target-date funds as a default investment option.
2011-01-25 How Emotions Undermine Your Investing Decisions - Video by Dan Richards (Article)
In this interview, U.C. Davis professor Brad Barber discusses his latest research, which examines how investors' behavioral biases lead to costly mistakes. This is a video of the interview.
2010-12-06 Turkeys, Cheerleaders and Buzz Lightyear\'s Butt by Mariko Gordon (Article)
Looking at things from all possible directions is critically important. Just like watching a parade at street level or from above, investment opportunities should also be admired from many angles.
2010-11-23 Letter to the Editor by Various (Article)
A reader responds to Jack Falvey's article, Through the Looking Glass with Steven Rattner, which appeared last week.
2010-11-03 Impact of Midterm Elections on the Market by Kevin D. Mahn of Hennion & Walsh
Traditionally, the third year of any presidential cycle has been positive for the U.S. stock market. The average gain of the Dow Jones Industrial Average has been 24.7 percent in the third year of a presidency. As a table presented in this commentary illustrates, a divided government can also lead to higher market growth rates.
2010-10-19 'Bond Bubble' Fears Overblown by G. David MacEwen (Article)
Despite considerable debate in the financial media about the existence of a bond market "bubble," the fixed income team at American Century Investments finds little evidence to support this claim. None of the factors traditionally associated with asset bubbles are at work in the bond market. However, a confluence of economic headwinds argues for a prolonged period of low interest rates and inflation, while behavioral finance trends favor further bond inflows.
2010-10-05 Charles Brandes on Investing Lessons from Benjamin Graham – Video by Dan Richards (Article)
In this interview, Charles Brandes, the founder and Chairman of the Brandes Investment Management, discusses the lessons he learned from legendary value investor Benjamin Graham. Brandes also offers his forecast for equity market performance, as well as why he believes value stocks have an inherent, sustainable advantage over growth stocks. This is the video of the interview.
2010-09-21 Getting off the Sidelines: Investing in the Smart Risk Zone by American Century Investments (Article)
Individual investors have experienced painful losses. Some have left the financial markets; others are reluctant to recommit their assets. Financial advisors want to get their clients off the sidelines, out of cash alternatives, and on track toward achieving their financial goals. In this article, American Century Investments offers a smart risk strategy to identify, understand, and manage risk by focusing on investment vehicles that offer higher potential return, lower volatility, better downside protection, and consistent compensation for risk. We thank them for their sponsorship.
2010-08-31 David Blitzer on How Indices Work – Video by Dan Richards (Article)
Many investors read about the Dow Jones or S & P 500 index being up or down 200 points but don't really understand what this means. Today's interview with David Blitzer of S & P provides an explanation of how indexes work that can be shared with clients. This is a video of the interview.
2010-08-19 Dow Dividend Yield Versus 10-Year Treasury Yield by Team of Bespoke Investment Group
There has been a lot of talk this week about how 'the great bond bubble' is about to crash and that equities look attractive compared to them. One data point that commentators have been citing is that the Dow's dividend yield is now greater than the 10-year Treasury bond yield. We've heard some say that this is the first time this has happened in decades, but in actuality, the Dow's yield got much higher than the 10-year bond yield as recently as late 2008 and early 2009. Bespoke presents a chart Dow yields minus 10-year Treasury bond yields from 1920 to the present.
2010-08-10 Zvi Bodie on Stocks and Annuities in Retirement (Video) by Dan Richards (Article)
In this interview, retirement expert Zvi Bodie discusses the role of stocks and annuities in a retirement portfolio, and how advisors and clients should think about risk. This is the video of the interview.
2010-08-05 Valuing the S&P 500: As-Reported Earnings Estimates by Doug Short of Doug Short
Doug Short provides a monthly market valuation update based on the cyclical P/E ratio using the 10-year average of as-reported earnings, and includes a table showing the earnings for most recent quarters and the estimates for the rest of the year. Based on Wednesday's close of 1120.46, the P/E ratio based on the trailing 12-month earnings for Q2 is the difference between a P/E of 16.8 (latest earnings) versus 17.6 (July 21 earnings).
2010-07-27 Robert Shiller: A Cautious Outlook for Stocks (Video) by Dan Richards (Article)
Dan Richards recently spoke with Robert Shiller, the Yale economist who foresaw the financial crisis and created the Case-Shiller housing index. Shiller discusses the potential for a double-dip recession, valuations in the US equity market, and the outlook for a housing recovery. This is the video of the interview.
2010-07-20 Jeremy Siegel on Why Stocks are Undervalued (Video) by Dan Richards (Article)
The Wharton School's Jeremy Siegel remains an outspoken proponent of stocks for the long run, as he demonstrates in this interview with Dan Richards. Siegel explains why equity investors should not be deterred by sour economic forecasts or by signals of apparent overvaluation based on Shiller P/E ratios. This is the video of our interview.
2010-07-06 Currency Management Series - Part Two: Currencies as an Asset Class and Source of Alpha by John Lovito and Federico Garcia Zamora (Article)
Active currency management allows professional managers to extract alpha on a consistent basis. Two members of American Century Investments' management team explain why, despite being one of the most liquid markets, global currencies remain inefficient. We thank them for their sponsorship.
2010-06-08 The Shape of Market Bubbles by Doug Short of Doug Short
Doug Short provides an overlay chart of four major bubbles across market history to see the variety of shapes a bubble can take. The overlay includes the 2007 Shanghai Composite bubble, the 2000 Nasdaq technology bubble, the 1929 Dow bubble and the 1989 Nikkei bubble. As the chart illustrates, bubbles usually go unrecognized by the majority of market participants until their late stages. The left side of the bubble is usually more gradual than the collapse, although the incredible rise of the Shanghai market is a notable exception.
2010-06-01 Equity Income Targets Utilities by Philip Sundell, CFA (Article)
Natural gas local distribution companies are appealing utility business models to conservative equity investors. They tend to have stable earnings and stronger balance sheets. Philip Sundell of American Century Investments discusses his overall outlook for utilities in this interview. We thank American Century for their sponsorship.
2010-05-27 World Markets: Revised Update by Doug Short of Doug Short
Doug Short provides provides a an overlay chart of world markets since March 9, 2009. The chart, he writes, illustrates the synchronous behavior of international stock indices. The question going forward is whether the correction to date is a long-term low or an interim low with more downside to come. Short also provides a chart of the Shanghai Composite Index since 2000, which includes a classic market bubble.
2010-05-06 First Quarter 2010 Market Review and Outlook by Ronald W. Roge of R.W. Roge
Recent signs of economic strength are encouraging, but mostly stem from temporary factors like stimulus spending and inventory rebuilding. Based on current valuations, it is likely that stock returns will trend below average in the next five years. Even under more optimistic scenarios, annualized equity returns barely reach double digits. This goes for stocks of both domestic and foreign developed markets. Roge's investment view therefore remains cautious, balanced and flexible.
2010-05-05 High Yield Outperforms by Team of Bespoke Investment Group
The average stock in the S&P 500 is now down 4.26 percent since the index peaked on April 23rd. But at least based on dividends, the high-yield stocks have outperformed their low or no-yield brethren by quite a wide margin during the recent pullback. When breaking up the S&P 500 into deciles based on dividend yield, the deciles of stocks with the highest yields are barely down, while stocks with low or no yields are underperforming. Investors typically flock to safer names during market declines, and it seems to be no different this time around.
2010-05-04 Investors Face a New Health Care Landscape: An Interview with Michael Liss by American Century Investments (Article)
After a year of intense partisan combat and fiery debates on Capitol Hill, President Obama signed a massive, nearly $1 trillion health care bill on March 23 that reshapes an industry that accounts for one-sixth of the U.S. economy. No one at American Century Investments® has followed the health care reform bill more closely than Michael Liss, vice president and portfolio manager for American Century Value, the company's flagship value portfolio, and he offers his thoughts on legislation. We thank American Century Investments for their sponsorship.
2010-04-13 Yield Opportunities Still Exist in Bonds by American Century Investments (Article)
The current economic and market environment presents intriguing challenges for income-seeking, risk-averse investors. One effect of the Federal Reserve's policy of holding short-term interest rates at historically low levels is to force cautious, safety-oriented investors out of cash-equivalent investments. In this article, David MacEwen, chief investment officer for fixed income, discusses a number of opportunities that may provide additional yield for clients within a risk-managed, fixed-income framework. We thank American Century Investments for their sponsorship.
2010-03-24 competitive yoga by tom brakke of the research puzzle
Investing, like Yoga, is not a competitive sport. Human nature, however, compels us to measure our investment performance relative to external, often irrelevant standards. The relative performance structure of institutional money management is the largest such example, causing investors large and small to make bad decisions in the guise of good ones. The biggest mistake a retiree with $5 million can make is to judge his investment performance relative to the S&P 500. Investing should be an intensely personal activity. We should learn from others without measuring ourselves by them.
2010-03-02 Asset Allocation Perspective by Scott Wittman, CFA (Article)
Scott Wittman, Chief Investment Officer for American Century Investments, provides his quarterly review of macro-economic factors and trends which influence the tactical weighting decisions for American Century's asset allocation funds. In the article, Wittman reviews and comments on recent events, trends and expected short-term future changes in monetary, fiscal, industrial, trade, regulatory, political and financial macro economic factors. We thank them for their sponsorship. This is sponsored content.
2010-02-23 The $2 Million Charity Challenge to Active Investors by David B. Loeper, CIMA, CIMC (Article)
Dave Loeper of Wealthcare Capital Management responds to last week's $100,000 challenge to passive managers by Roger Schreiner. Loeper says Schreiner "stacked the deck" to make his challenge un-winnable, and instead offers his own challenge to active management advocates.
2010-02-17 Sirius Breaks (Above) the Buck by Team of Bespoke Investment Group
Sirius XM Radio's stock broke the $1 mark for the first time since September 2008. Shares rose by 1,900% since trading for as low as five cents last February, and are up 80 percent since their low on December 22. An improving auto sector may be driving up share prices.
2010-02-16 2010 Outlook: More Growth on the Horizon for Emerging Markets by Patricia Ribeiro (Article)
Patricia Ribeiro, Vice President and Portfolio Manager for the American Century® Emerging Markets Fund, believes the emerging markets asset class offers short- and long-term growth prospects and diversification benefits at attractive market valuations. In a recent interview, Ms. Ribeiro shared her views on the current state of emerging markets, what lies ahead in 2010, and how her investment team is selecting equities for the fund. We thank American Century for their sponsorship.
2010-02-10 Bespoke's Sports Illustrated Swimsuit Issue Indicator by Team of Bespoke Investment Group
Bespoke Investment Group says the appearance of American model Brooklyn Decker on the cover of this year's Sports Illustrated swimsuit issue may be a good sign for investors. The S&P 500 remained positive in 13 out of 16 years an American appeared on the cover since 1978 and posted average returns of 10.6 percent. It stayed positive in 12 out of 16 years an American did not appear on the cover, and posted average returns of 8.2 percent.
2010-01-26 Guidance Is Also Strong by Team of Bespoke Investment Group
Just like the earnings beat rate this quarter, the percentage of companies raising guidance versus lowering guidance is also strong. As shown below, 12.6% of companies that have reported earnings thi
2009-12-15 The End is (Not) Near by Mariko Gordon (Article)
More than just a year, "2012" has quickly become synonymous in pop culture with "the end of the world." Mariko Gordon of Daruma Asset Management takes a look at our collective fascination with this and other arbitrary dates, particularly those that relate to stock performance!
2009-12-08 Investment Viewpoints Equity Income: Performance and Wealth Preservation by American Century Investments (Article)
"A manager who limited losses last year went a huge way toward helping investors accumulate wealth over time and meet their long-term goals," Morningstar's Don Phillips told the Wall Street Journal in early November for an article titled, "The Cruel Math of Big Losses." "It's the kind of victory that often goes unnoticed," Phillips said. Read how American Century® Equity Income provided its 80,000 shareholders with such a victory last year. We thank them for their sponsorship.
2009-11-10 Investment Viewpoints - September 2009: Four Reasons to Emphasize Active Investment Management by Enrique Chang and Scott Wittman (Article)
Since the onset of the global financial crisis, there has been an increasing number of articles in financial journals and the financial press pointing out that actively managed investments of all types did not fare well relative to passive investment strategies. In this article, American Century Investments provides four fundamental reasons why those who have forecast the demise of active investment management are mistaken, in part due to one of the most common errors of behavioral finance-the Recency Effect. We thank them for their sponsorship.
2009-11-03 More on the Fama-French Farewell Tour by Various (Article)
Tom Howard responds to two letters to the Editor in last week's issue, which follow-up our article on the latest Fama-French study defending passive management. Howard says there is plenty of academic evidence of "plain old stock-picking skill."
2009-10-20 Asset Allocation Perspective from American Century Investments by Scott Wittman, CFA (Article)
Scott Wittman,Senior Vice President, Asset Allocation at American Century Investments reflects on the one-year anniversary of the near-meltdown by our financial system and provides perspective on what kind of recovery may be coming. We thank American Century Investments for their sponsorship.
2009-06-16 Peter L. Bernstein Remembered by Robert Huebscher (Article)
The investment industry lost one of its leaders last week, when Peter L. Bernstein passed away at the age of 90. As an author, Bernstein provided clarity and insight to our understanding of risk and the way markets operate, through his books and his newsletter, Economics and Portfolio Strategy. We are republishing our interview with him last January, when he foresaw many of the elements of the current crisis.
2009-05-12 The Well-Meaning by Michael Lewitt (Article)
We are once again privileged to publish the latest version of the HCM Market Letter, edited by Michael Lewitt. Lewitt's analysis and writing are a cut above virtually everything else we see, and you will enjoy reading his latest thoughts. You can also subscribe directly to his newsletter using the link at the beginning of the article.
2009-05-12 A Response to "Odds on Imperfection: Monte Carlo Simulation" by David B. Loeper, CIMA, CIMC (Article)
Dave Loeper, Chairman and CEO of Financeware, responds to an article in last week's Wall Street Journal on Monte Carlo simulation. Loeper says our industry suffers from a conflict of interest, perpetuated by this article, which results in scaring people into needlessly sacrificing their lifestyle, only to die on a death bed stuffed with money they could have spent.
2009-05-05 Defending Against Inflation: A New Look across Asset Classes by Robert Huebscher (Article)
In the long-term performance race against inflation, stocks are the hands-down winner, outpacing inflation 9.7% to 3.0% since 1926. But that history is characterized predominantly by modest inflation, with one big exception - the 1970s, when double-digit inflation contributed to a bear market. We look at new research showing the effectiveness of different asset classes as inflation hedges, and Zvi Bodie explains the implications for retirement portfolios.
2009-05-05 Letters to the Editor by Various (Article)
We touched a few nerves last week with our critique of Standard and Poor's SPIVA study, where we raised doubts about S&P's claim that passive management does better in bull markets than in bear markets. We publish letters from two of our more vocal critics, along with our response.
2009-04-28 Gary Shilling – Economic Forecast and Current Market Opportunities by Robert Huebscher (Article)
Gary Shilling is well-known for his forecasting record, having correctly predicted major economic events over the past several decades. Beginning in 2002, he warned his clients that the housing market "has taken on self-feeding, bubble dimensions that will sooner or later collapse," and continued to sound this warning through 2007, when his predictions came true. Dr. Shilling shares with us his current forecast for the economy and the market.
2009-04-28 Equity Income: A Fund for All Seasons by Matt Oldroyd and Shawn Connor (Article)
If the first quarter of 2009 is any indication, we appear to be in for another year (or longer) of extreme market volatility and uncertainty, the result of a worsening recession and a dismal profit picture, still frozen credit markets, a struggling auto industry, and doubtfulness about the government's stimulus package. Matt Oldroyd and Shawn Connor of American Century Investments explain why that's a strong case for investing in American Century's Equity Income fund - a fund for all seasons. We thank them for their sponsorship.
2009-04-28 Active versus Passive Management in Bear Markets by Robert Huebscher (Article)
Nobody needs an active manager in a bull market - an index fund will do just fine. But active managers earn their keep in bear markets, and the current one represents another chance to see whether they add value. We review Standard & Poor's SPIVA study to see whether it answers this very important question.
2009-02-10 How to Think about Investment Returns by Adam Jared Apt (Article)
Adam Apt provides the third article in his series intended for the educated layman, addressing the question of how to think about investment returns. What matters for the investor is the total package, the entire portfolio. A change in one component of the package, considered in isolation, often matters very little, unless it is indicative of something systematic.
2009-02-03 How to Think about Investing by Adam Jared Apt (Article)
Adam Jared Apt's column answers the question "how to think about investing" from the perspective of an educated laymen. Apt traces the development of classical finance, modern portfolio theory, and behavioral finance, and shows the role each plays in the construction of a properly diversified portfolio.
2009-01-27 How to Think about Investment Risk by Adam Jared Apt (Article)
Investment risk should be viewed as a matter of quantifiable probabilities and some amount of risk, even risk of extreme outcomes, is ever present. In this article written for investors, advisor Adam Apt says it is useful to identify investment risk with the volatility of returns and that some common inferences from this identification are incorrect. But a little statistical learning can lead to dangerous underestimation of investment risk.
