4 Key Factors That Impact Risk & Return

March 20, 2017  |  

4 Key Factors That Impact Risk & Return

In my last post, we explored the nuances of diversifying your portfolio. In this video, we’ll explore why you should be compensated differently for investing in different types of asset classes. We’ll also explain why the true evidence-based investing our firm advocates is more powerful than mere surveys, studies and research reports so often touted by the media and the financial services industry.

We’ll explore why stocks historically return more than bonds, why small-cap stocks return more than large-company stocks and why “value stocks” generally return more than growth stocks. We’ll also explore two new factors that most investors don’t know about (profitability and momentum).  Finally, we’ll explain why longer-term bonds can be expected to return more than shorter-term bonds and how lower-grade bonds should be expected to return more to investors than their higher-grade counterparts.


  • Insight #7: Basis of Market Returns
  • Insight #8: The Essence of Evidence Based Investing
  • Insight #9: Factors that Figure in Your Evidence-Based Portfolio
  • Insight #10: What Has Evidence Based Investing Done for Me Lately?

In my next post, we’ll look at the human factors that influence investment decisions for better or worse.


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About Chas Boinske

Charles P. Boinske, CFA, is a 30 year investment management veteran overseeing the strategic direction and portfolio management process for Independence Advisors, LLC. Have a question for Charles? CLICK HERE TO ASK CHARLES

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