Alpha Architect Research Blog

The Newest Alpha Architect Research and Insights

BARRACKS CASH: A Military Guide to Better Saving and Spending

Foreword: Mark Cowett is an interesting character.  He is a University of Chicago undergraduate with a BA in History as well as an MBA from Yale University -- so he obviously has some brains. Aside from brains, he has some substantial ...

Congratulations to our new CFA® Charter Holder — Tao Wang!

As many of our readers know, a CFA® designation represents a lot of blood, sweat, and tears expended on understanding the nuance of finance at both a technical and theoretical level. Our long-time friend, partner, and quant extraordinaire -- Tao Wang ...

An Epic Historical Performance Streak: Domestic 60/40

60_40 is hot
US-centric 60/40 portfolios have literally knocked it out of the park since 2010. Nearly a 10 percent compound annual growth rate, less than a 7 percent worst drawdown, and a Sharpe ratio of 1.33 (see below). This is a 6 -year performance run ...

Book Review — Entrepreneurs in the Midst: Stories from Founders, Creators, and Builders

Entrepreneurs in the Midst_ Stories from Founders, Creators, and Builders
When considering the prospects for an early-stage business, it’s hard to know the right ingredients for success. You might assess the firm's business model, and value proposition. You might look for diverse traits in the founders, such as passion, vision, resilience, ...

Behavioral Finance Strikes Again: Contrast Effects in Financial Markets

tough act to follow
At this point, even hard core efficient market fans will likely admit that behavior can influence investment decisions. Humans aren't robots. However, just because some investors exhibit bad behavior that doesn't mean they can influence prices. As the story goes, smart investors are prepared ...

A Stunning New Finding: Return Seasonalities are Everywhere

juhani part 1
We've discussed return seasonalities in the past, especially as they pertain to our approach to momentum. Turns out seasonality effects aren't confined to momentum -- they are literally everywhere and they are incredibly strong. This paper will blow your mind once you ...

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