In my recent post "What to factor in and what to factor out?," I explained what the ‘factor’ in factor-based investing really means. While its acronym (FBI) gives the impression that it's rather complex, like the US organisation, investors have been increasingly looking to factor-based investing to drive their investment returns. It's time to consider why...
Factor-based investing has seen rapid growth since the financial crisis, as investors look beyond traditional asset class labels to understand what really drives the performance of their portfolios. Bombarded with new products and an ever-growing body of research, what should investors focus on before jumping on the factor bandwagon?
Can investors exploit "value" and "interest" signals to guide their foreign currency allocation? The answer to both looks like a decisive yes. These concepts can be used to help guide currency investments. In the wake of the post-Brexit vote sterling slump, they caution us to be nervous about the strong dollar hype.
UK inflation is expected to increase, eating away the hard-earned savings of individuals and pensioners. Thankfully, investors can act to avoid becoming sitting ducks and aim for positive real returns. Making a temporary amend (don't publish this and just roll back)