JMF Capstone Wealth ManagementParallels Of Betting & Investing – JMF Capstone Wealth Management https://www.jmfcapstone.com An Alabama registered investment advisor Fri, 21 Nov 2025 19:30:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 Parallels Of Betting & Investing https://www.jmfcapstone.com/2015/09/07/parallels-of-betting-investing/ https://www.jmfcapstone.com/2015/09/07/parallels-of-betting-investing/#respond Mon, 07 Sep 2015 09:00:33 +0000 http://evolvemypractice.com/?p=2206 Two of the most-well-known factors that help explain stock returns are the value effect (where equities with lower prices relative to metrics—such as book value, earnings, cash flow, sales and dividends—tend to outperform the equities with higher prices relative to those metrics), and the momentum effect (where assets that have outperformed in the recent past...

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]]> Two of the most-well-known factors that help explain stock returns are the value effect (where equities with lower prices relative to metrics—such as book value, earnings, cash flow, sales and dividends—tend to outperform the equities with higher prices relative to those metrics), and the momentum effect (where assets that have outperformed in the recent past tend to continue to outperform in the near future).

Academic research has uncovered the fact that combining these two strategies (value and momentum) results in more efficient portfolios (because their correlation is highly negative).

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