White Papers

By February 29, 2012White Papers

Alpha or Wealth: Seeking alpha, or out-performance relative to similar indexes, can actually result in less wealth than might be achieved with efficiently allocated index funds, when cash flows badly align with the investor’s sequence of returns.

Fake Diversification: So much is said today about the need for sophisticated diversification funded by expensive alternative investements. Dave Loeper’s paper exposes how poorly these supposed risk hedges performed in two recent market downturns.

Transaction-cost Expenditures and the Relative Performance of Mutual Funds – Wharton: This study found that annual trading costs for a sample of equity mutual funds were “large and exhibit substantial cross sectional variation. Trading costs average 0.78% of fund assets per year and have an inter-quartile range of 0.59%.”

Understanding Monte Carlo: Whether you call it Monte Carlo Simulation, Stochastic Modeling, or Probability Analysis, there exists among advisors and their clients a fair amount of mystery about what exactly this analysis is and how it works.

Are You Modeling What You Intended? Building Capital Market Assumptions for Monte Carlo Simulation. It is absolutely critical that the capital market assumptions have the effect of modeling what it intends to model.

Why the Comfort Zone is Comfortable: A straightforward description of the Comfort Zone and how to interpret it.

Gold’s Twelve Month March to $3,800 an Ounce: Continuing concerns about the prospects of inflation have many investors and advisors looking toward deploying inflation hedges like gold, commodities, TIPs, and, despite recent collapses in these assets. This white paper demonstrated how our 7-10 year Treasuries held up during some of this country’s most protracted periods of inflation.

Author Sam Bass Jr.

Sam founded Beacon Wealthcare in 1998. He has thirty five years' experience investing money for his clients. In 2006 he changed the focus of his firm from asset/return to a client/goal-centered and adopted state-of-the-art planning and management systems to deliver the best fully integrated planning service available. Sam holds a BA in English Literature from Hampden-Sydney College, 1975 and an MBA from Wake Forest University, 1981. He concentrated in International Finance, and did research for an International Finance textbook which included a summer at the London School of Economics. He is married to Sharon, a talented pleinAir oil painter, They enjoy being with their three children, their spouses, and five beautiful grandchildren as often as they can. Sam loves Jesus, sailing, cycling, and writing.

More posts by Sam Bass Jr.

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