Why Low Volatility ETFs Are A Sign Of The Times [View article]
I would agree that utilities have much of the interest rate risk that long bonds do, but consumer staples (XLP) have shown to have superior risk-adjusted returns over longer time periods, in part due to strong brands which can pass through inflation to the consumer.
The Biggest Lie On Wall Street: Higher Risk Equals Higher Return [View article]
I've also observed lower volatility portfolios beating higher volatility ones. I beleive this to be due to the fact that most people who choose security selection over broader index or mutual fund investing select a relatively limited number of firms to make up their portfolio to differentiate from the market as well as save on analysis and turnover. In this case it is usually better to have a portfolio of a lot of modest winners than a portfolio containing a few home runs and a few disasters.
When measuring risk though, one needs to look at both stdev and beta. You can have a low beta - high risk stock if stdev is high (think education stocks), simply because it has low correlation with the S&P 500.
Hedging Against A 4,000 Point Drop In The Dow [View article]
The other reason to choose the longer dated options is to lock in the implied volatility you pay. The shorter maturities are cheaper based on an IV basis, currently, but if the Dow at least began its decline before it was time to roll your options, you'd likely be paying up more IV to put on the next hedge.
Margin Debt: Another Equity Market Crash Signal [View article]
Why Low Volatility ETFs Are A Sign Of The Times [View article]
The Biggest Lie On Wall Street: Higher Risk Equals Higher Return [View article]
When measuring risk though, one needs to look at both stdev and beta. You can have a low beta - high risk stock if stdev is high (think education stocks), simply because it has low correlation with the S&P 500.
Hedging Against A 4,000 Point Drop In The Dow [View article]