NotesUpdated September 29, 2007. Managing Downside Risk in Financial MarketsManaging Downside Risk in Financial Markets by Frank Sortino and Stephen Satchell describes methods that are light-years ahead of traditional Mean-Variance Optimization.It comes with useful software. Managing Downside Risk in Financial Markets I have opened up a new area of Current Research about Managing Downside Risk. Current Research E: Managing Downside Risk in Financial Markets Introducing the Minimum Acceptable Return (MAR) Monthly Returns Ten Valuation Levels Short Intervals Longer Sequences Not There Yet The 4% ShockerI have located the original thread with The 4% Shocker. I have placed a copy into a separate folder in my Yahoo Briefcase. This version includes the data tables.The 4% Shocker was a major finding at the SWR Research Group board. Yahoo Briefcase The 4% Shocker Monthly ReturnsOur investigations into Managing Downside Risk in Financial Markets have led us to an unexpected conclusion: Much of academic investment research should be tossed out.The critical flaw is the use of monthly returns. Monthly Returns Refusing to See: DividendsI read recently that dividend yields have no power to predict stock returns. Ridiculous.Here are my speculations as to how someone could reach such a conclusion. Refusing to See: Dividends A Must Read from Rob BennettThis is a Must Read. I am impressed. It will take a while for me to take it all in.Follow the links. Read it all. December 20, 2005 - The New Buy-and-Hold Basics of The New Buy-and-Hold The New Buy-and-Hold Here is a list of Rob Bennett's Eighteen Tenets of The New Buy-and-Hold investing paradigm. Eighteen Tenets of the New Buy-and-Hold Another Must Read from Rob BennettThere is a high interest item today on Rob Bennett's Financial Freedom Blog: How to Save When There's Not Much Time Left to Save. Read Rob Bennett's Late-Start Retirement Plan.Financial Freedom Blog The Late-Start Retirement Plan Take a LookMike sent me this link. It has excerpts from the first three chapters of one of the very best investment books out there: The Single Best Investment.Excerpts from The Single Best Investment Updated CalculatorI have updated the data in my Deluxe Calculator V1.1A08. It now includes prices through May 2005 and dividends through June 2004. The calculator uses January values for the CPI and P/E10. The calculator uses updated CPI and P/E10 values through January 2005.The calculator uses data from Professor Robert Shiller’s database. I refer to this updated version as my Deluxe Calculator V1.1A08a. I have put it into a self-extracting zip file. You can download it from my Yahoo Briefcase. It is in folder Deluxe V1.1A08a. I have constructed tables of Professor Robert Shiller's data for individual months. I have put them into my Yahoo Briefcase for download. This includes two Microsoft Word documents and a Spreadsheet in a self-extracting zip file. These documents make it easy for you built single-month calculators with the correct P/E10 and CPI. The Deluxe V1.1A08a calculator already allows you to select individual months for price and dividend data. You can copy and paste special the P/E10 data onto row 186. You can copy and paste special the CPI data onto row 188. You need to use the Paste Special command to transpose data copied from a column to paste it onto a row. Yahoo Briefcase Earlier NotesHere are our earlier Notes.Notes through August 21, 2005 Be sure to read A Note about Statistics at the bottom of the following link. Notes through November 29, 2005 |