Broker Check
cropped-RLS-Logo.png
Search
Schedule A Conversation
Share

RL155 — Factor-Based Investing

On the Retirement Lifestyle Show, Roshan Loungani, Erik Olson, and Adrian Nicholson break down Factor investing and why it’s such an effective investment strategy. They cover topics like the basics of Factor investing, the diverse approaches to multi-factor investing, and smart investing approaches to help you beat the market and maximize returns. Listen now to hear the break down of Factor-Based Investing.

[00:00] Introduction

[04:48] Why Most People are Research-based Investors

[07:00] What is Factor Investing?

[12:16] Common Attributes of Factor Investing

[15:47] Understanding Multi-Factor Investing

[18:20] The Common Sense Test

[21:22] How to Protect Yourself from Risky Investing

[26:30] The Momentum with Volatility Control Strategy

[31:10] Comments on The Momentum with Volatility Control Strategy

[35:50] The Basics of the Value, Quality, Momentum, and Timing Strategy

[38:58] Unique Measures of Value

[43:27] Analyzing a Snapshot of a Morningstar Portfolio

[47:15] Weighting and Stock Analysis

[50:43] The Tremendous Outperformance of Growth Versus Value

[55:30] Why Investors Must be Willing to Endure Periods of Underperformance

[57:55] The Quality, Larger Value with Income Strategy

[01:05:55] Performance Numbers and Why Investment Strategies Behave Differently

[01:10:45] Resources for Factor Investing

[01:13:52] Parting Thoughts

To read the Full Show Notes scroll down or click here.

  • Roshan Loungani can be reached at roshan.loungani@aretewealth.com or at 202-536-4468.
  • Erik Olson can be reached at erik.olson@aretewealth.com or 815-940-4652.
  • Adrian Nicholson can be reached at adrian.nicholson@aretewealth.com or at 703-915-8905

Listen now to hear the break down of Factor-Based Investing.

Select episodes, like this one, can be found on YouTube: https://www.youtube.com/channel/UC0ZZPM3xk6onXNpb1ceAkCg

Visit Anchor.fm for ALL the links to several podcast sites: Anchor.fm: https://anchor.fm/roshan-a-loungani
Spotify: https://open.spotify.com/show/354IACA2UGM1DMsX8pfKlQ?si=0bfKMPI9TS29JogpOLnG_Q
iTunes: https://podcasts.apple.com/us/podcast/retirement-lifestyle-show-roshan-loungani-erik-olson/id1470410459
Follow Us At:
https://www.retirementlifestyleshow.com
https://www.retirewithroshan.com
https://twitter.com/RoshanLoungani
https://www.linkedin.com/in/roshanloungani/ 
https://www.facebook.com/retirewithroshan/
https://www.linkedin.com/in/financialerik/ 
https://www.linkedin.com/in/adrian-nicholson-74b82b13b/

#retirementlifestyleshow #retirementlifestylepodcast #fire #podcast #FI #Retire #retirewithroshan

stock market investing and Factor-Based Investing

Full Show Notes:

What is Factor-Based Investing?

Factor-based investing is an investment strategy that focuses on capturing returns from underlying factors such as size, value, momentum, and quality of a security. The idea is that these factors have a persistent effect on returns and can be used to build portfolios with enhanced risk-adjusted returns. Factor investing relies on its ability to deliver returns that are uncorrelated with traditional market indices while providing diversification benefits. Additionally, factor investing can help investors achieve specific investment objectives, such as enhancing risk-adjusted returns or tilting portfolios towards a desired factor exposure. 

 

By incorporating factors into your investment strategy, you can achieve higher risk-adjusted returns and build a more diversified investment portfolio. However, just like most investment strategies, Factor investing is only ideal for some people and won’t necessarily work in your portfolio. 

 

Why You Need to Find Your Investment Personality

One of the main drivers of investment success is finding your investment personality. This involves understanding your financial goals, risk tolerance, and investment style. If you invest in something you’re not comfortable with, you won’t have the level of comfort it takes to get through difficulties in a down market.

 

To find your investment personality, start by assessing your goals and evaluating your risk tolerance. You should also consider your investment style, reflect on past experiences, and seek the advice of a financial advisor before making huge decisions. Your personality will ultimately help you make informed investment decisions that allow you to weather the storm during a down year.

 

Links and Resources:

Disclaimer Welcome, you are now listening to the retirement lifestyle show with Roshan Loungani Erik Olson and Adrian Nicholson. This show is an exploration of ideas to help you work towards your ideal retirement. Roshan Loungani and Erik Olson serve clients across the US. They offer financial planning and investment advice through Arete Wealth Advisors, LLC, an SEC registered investment advisor and securities through Arete Wealth Management LLC, member FINRA, SIPC, and NFA. Get ready for the financial independence of your dreams. All opinions expressed by podcast hosts and guests are solely their own are based on information they believe is reliable. Neither Arete Wealth nor its affiliates, warrants its completeness or accuracy, nor do their opinions reflect the opinion of Arete Wealth. This podcast is for general informational purposes only and should not be regarded as specific advice or recommendations for any individual. Before making any decisions consult a professional. Finally, our music is the chance by Jason Shaw and Audionautix. It’s part of the YouTube Audio Library and it’s licensed under a Creative Commons license.

Thank you for listening.

Recent Posts

How to Overcome Challenges and Achieve Your Goals

In this episode of the Retirement Lifestyle Show, Adrian Nicholson shares his personal journey of preparing for and passing the CFP® certification examination. He discusses the challenges he faced, the strategies he employed, and the valuable lessons he learned throughout the process. From choosing the right online courses to managing his study schedule, Adrian emphasizes the importance of commitment, a positive mindset, and effective preparation. He also shares key takeaways that can help listeners tackle their own challenges and pursue their goals. Listen now and learn How to Overcome Challenges and Achieve Your Goals.

Read More »
In this episode of the Retirement Lifestyle Show, hosts Roshan Loungani and Adrian Nicholson talk about the 2025 investment outlook, discussing the post-pandemic economic landscape, market dynamics, and the significance of the Magnificent Seven stocks. They explore the impact of geopolitical risks on investments and emphasize the importance of rebalancing portfolios to align with financial goals. The conversation highlights key trends and strategies for investors to be more informed when navigating the evolving market environment effectively. Listen now to learn about the 2025 Market Outlook: Trends, Strategies, and the 'Magnificent Seven.

2025 Market Outlook: Trends, Strategies, and the ‘Magnificent Seven

In this episode of the Retirement Lifestyle Show, hosts Roshan Loungani and Adrian Nicholson talk about the 2025 investment outlook, discussing the post-pandemic economic landscape, market dynamics, and the significance of the Magnificent Seven stocks. They explore the impact of geopolitical risks on investments and emphasize the importance of rebalancing portfolios to align with financial goals. The conversation highlights key trends and strategies for investors to be more informed when navigating the evolving market environment effectively. Listen now to learn about the 2025 Market Outlook: Trends, Strategies, and the ‘Magnificent Seven.

Read More »
Financial Psychology: Biases That Impact Your Life

Financial Psychology: Biases That Impact Your Life

In this episode of the Retirement Lifestyle Show, hosts Roshan Loungani and Adrian Nicholson delve into the realm of financial psychology, exploring how various psychological concepts influence retirement planning and investing. They discuss the status quo bias, heuristics, analysis paralysis, mental accounting, the endowment effect, herd behavior, and narrative fallacy, providing insights and examples to help listeners understand the impact of these biases on their financial decisions. The conversation emphasizes the importance of self-awareness in managing finances and making informed investment choices. Listen now to learn more about the Financial Psychology: Biases That Impact Your Life.

Read More »

Advisory services offered through Arete Wealth Advisors, an SEC registered investment advisor.

Securities offered through Arete Wealth Management, LLC, member FINRA, SIPC and NFA.

FINRA Broker Check

Disclosures | Business Continuity Plan

2021 © All Rights Reserved by the retirement lifestyle show. | Web Design by auspicious design.