The Factor-Based Investing Channel

How Should The Fed React To Tax Reform?

Test of Northern Trust

Schwab Market Perspective: The Big Picture Heading into 2018

Test of Schwab post

Capitalizing Potential

A massive amount of stock market capitalization is tied up in companies based on both their potential market share and hypothetical future profits. The popular arguments in their favor come from looking at a company’s total addressable market (TAM). Sky high price-to-earnings ratios and massive capitalizations are common in companies with a large TAM as we finish up 2017.

Home Prices Rose 6.2% Year-over-Year in September

With today's release of the September S&P/Case-Shiller Home Price Index, we learned that seasonally adjusted home prices for the benchmark 20-city index were up 0.5% month over month. The seasonally adjusted national index year-over-year change has hovered between 4.2% and 6.2% for the last thirty months. Today's S&P/Case-Shiller National Home Price Index (nominal) reached another new high.

FHFA House Price Index: Index Up 1.4% in Q3

The Federal Housing Finance Agency (FHFA) has released its U.S. House Price Index (HPI) for Q3 and September. U.S. house prices were up 0.3 percent on a seasonally adjusted nominal basis from the previous month. Year-over-year the index is up 6.4% (nonseasonally adjusted). Seasonally adjusted, the index is up 4.53% year-over-year.

A Wall Street Walk Through Time

Robert Penn Warren (April 1905 – September 1989) was an American poet, novelist, and literary critic who once said, “History cannot give us a program for the future, but it can give us a fuller understanding of ourselves, and of our common humanity, so that we can better face the future.”

US Earnings Growth: Businesses that Matter

Many investors are scrutinizing US earnings growth, given that stock valuations are somewhat elevated. Companies that can maintain a successful moat around their business in a changing environment are best positioned to deliver growth and returns.

World Markets Update

All eight indexes on our world watch list have posted gains for 2017 through November 27. The top performer thus far is Hong Kong's Hang Seng with a gain of 34.93%, followed by India's BSE SENSEX at 26.81%. In third is Tokyo's Nikkei with 17.69%.

Factor-based Investing poll: the results

Here are our poll results to the question: Which factor-based strategy is most likely to outperform over the long term on a risk-adjusted basis, net of fees? We will launch topical polls every week, if you have suggestions for future polls please email

On My Radar: Trade Signals Remain Risk On

Happy Thanksgiving to you and your wonderful family. Today’s post is holiday short because by the time it hits your in box I’ll hopefully be home with IPA in hand celebrating a hard-fought Black Friday golf tournament victory. Daughter, Brianna; son, Matthew and good friend, Stevie Oh, rounds out our foursome. If you are familiar with golf, it’s a scramble format where each player tees off.

Which factor-based strategy is most likely to outperform over the long term on a risk-adjusted basis

This is the third week of a weekly poll series we will launch on our site. It takes one minute and once you submit your response you'll be taken to a page where you can see the results. Continue the conversation on the results page about why you chose your answer by clicking on "COMMENT ON" APViewpoint link.

From Reflation to Inflation

The U.S. economy is shifting from reflation to inflation – and we have greater confidence in inflation returning to its medium-term trend and the Federal Reserve’s target. Better wage growth and potential fiscal stimulus should cement this transition.

My Proposal to Help Female Advisors

In response to the parade of vile perpetrators of sexual misconduct, here’s a step that we can all take to help women. I’ve already taken it.

Why Clients Ignore Your E-Newsletters

Even if you don’t mislead or offend clients, if you bore them, the time and effort to communicate with clients is wasted. There are six components to doing a great job of communicating online. While some advisors get two or three of them right, almost no one nails all six … and as a result, you aren’t getting the return that you could.

A Proposal to Reverse the Populist Tide

Why is income inequality important to economic growth? Economic justice concerns aside, if the bottom 80% are not generating sufficient income and are unable to spend, aggregate demand and economic growth will suffer.