Taking human judgement out of equity portfolios can help investors stay ahead of market reversals.
In 1983, the S&P 500® hit an all-time high of 166. Anyone who said then “I’m too smart to buy into the market near an all-time high – I’ll wait for it to fall 10%” – is still waiting. It never fell 10%.
ASG Research has identified eight sources of potential return dispersion across portfolios of risk premia strategies. A simulation analysis shows, returns can quite differ based on few alterations of these sources.
Continuing to seek risk-adjusted excess returns.