JMF Capstone Wealth ManagementUse Caution With Low Vol Strategies – 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 Use Caution With Low Vol Strategies https://www.jmfcapstone.com/2016/08/29/use-caution-low-vol-strategies/ https://www.jmfcapstone.com/2016/08/29/use-caution-low-vol-strategies/#respond Mon, 29 Aug 2016 09:00:16 +0000 http://evolvemypractice.com/?p=3093 As we have discussed before, one of the major problems for the first formal asset pricing model developed by financial economists, the capital asset pricing model (CAPM), was that it predicts a positive relation between risk and return. But empirical studies have found the actual relation to be flat, or even negative. Over the past...

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]]> As we have discussed before, one of the major problems for the first formal asset pricing model developed by financial economists, the capital asset pricing model (CAPM), was that it predicts a positive relation between risk and return. But empirical studies have found the actual relation to be flat, or even negative.

Over the past five decades, the most “defensive” stocks have furnished higher returns than the most “aggressive” stocks. In addition, defensive strategies (at least those based on volatility) have delivered significant Fama-French three-factor and four-factor alphas.

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