Factor investing is an investment approach that involves targeting quantifiable firm characteristics or “factors” that can explain differences in stock returns. Over the last fifty years, academic research has identified hundreds of factors that impact stock returns. The following three resources provide varying degrees of depth into this topic. Check them out below:
- Read: Factor Investing Fact Check: Are Value and Momentum Dead? by Wes Gray, PhD. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago. His interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management firm that delivers affordable active exposures for tax-sensitive investors. You can also listen to this conversation between Wes Gray and Meb Faber.
- Listen: Dr. Daniel Crosby touches on the psychology of investment momentum in this 14-minute podcast. He is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets.
- Watch: What is factor investing? This handy article and accompanying brief video from Investopedia give an overview of this perspective in investing.
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You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!