News

2016 Performance of Premiums in the Equity Markets

A key concept in understanding our investment philosophy is tilting portfolios toward factors that produce excess return. In this presentation, we examine the market, company size, relative price and profitability premiums over time.

The Pioneering Women of Finance and Economics

By Gina Petrelli Aldaz

In the spirit of International Women's Day, we honor women who made notable contributions to society and managed to breakthrough gender barriers. In the traditionally male-dominated world of finance, we have had our own share of hidden and not so hidden figures.

Below we take a look five women recognized in the American Museum of Finance who made their mark in finance and economics beginning as early as 1764.

What You Should Understand About the DOL Fiduciary Rule

By Brent Everett

First, a fact about where we stand: we support a fiduciary standard for all financial advisors that is applied consistently and is enforceable by the proper regulatory authority.  The Department of Labor (DOL)’s Fiduciary Rule, while perhaps well-intended, is not that – in fact, it’s not even close.  Unfortunately, like so many issues recently, it has become a lightning rod for polarized opinions.

A formula that identifies fraud? You can count on it.

By Stephen Hart

From the IRS, to your local bank, to a multi-billion dollar financial custodian, any and all are subject to people trying to commit fraud. Whether it’s fudging the numbers a bit here or there or attempting to cash in falsified checks, the financial industry constantly seeks new safeguards to keep client money safe and to make sure they themselves are not being taken advantage of. But as it turns out, an easy way to spot fraud is through a simple mathematical convention, commonly known as Benford’s Law.

Q4 | Big Year for Small and Value

By Brent Everett

As we discussed in the annual letter, equity performance in 2016 was strong, particularly in US and emerging markets.  Both the US and international bond markets performed well for the year, although all asset classes except US equities suffered losses in Q4.  US equities had an exceptionally good Q4, with the broad US market up 4.21% for the quarter.

Trading Places

The classic ‘80s comedy, Trading Places, seems to enjoy a surge in popularity around Christmas every year. And, almost every year, someone asks me to explain how Billy Ray Valentine (Eddie Murphy) and Lewis Winthorpe III (Dan Aykroyd) made a fortune with frozen concentrated orange juice (FCOJ) futures. It occurs to me that this is a good opportunity to explain how futures contracts and short selling works.

Understanding Cost Basis and Calculating Gains

By Brent Everett

Cost basis is a tax accounting concept — typically the original value of an asset.  It may be adjusted for a variety of reasons, which includes stock splits and return of capital.  The value is used to calculate capital gains.  For unrealized gains, this is the difference between the cost basis and the current market value of the asset.  Unrealized gains are gains that are currently “embedded” in the price of an asset and that represent a potential future tax liability.  For realized gains, this is the difference between the cost basis and the price at which the asset was sold.  Realized capital gains are generally taxable within the tax year that the sale of an asset is made. 

Tips on Protecting Your Data

At Talis Advisors, protecting our clients' information is a priority. In order to assure that all of your data is safe, we want to share tips and best practices in cyber security. These next couple of weeks, we will be posting a tip per day from ConsumerReports.org.

The Value of Forecasting Revisited

By Brent Everett

We discussed this subject in a post from September 2015 and, since, we have had several good examples of why we (and the majority of academics, including Nobel Prize winners) believe that forecasting is a waste of time.

Two events stand out: Brexit and the 2016 U.S. presidential election. 

The Fallacy of Intellectual Equivalence

Choosing how to invest is a daunting proposition for most people, and it is made more difficult by the competing points of view heard from various sources. We’ve discussed the importance of considering the source – most have built-in conflicts of interest. The financial media seeks ratings or wants to sell more of their product. Investment managers seek to grow client assets that create income. While imperfect, academic research is probably the least biased and best source of information.

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