Keith Loveland - A Student of Financial Markets

I've said I've been a student of the market my whole life. That's not accurate. I didn't read "Portfolio Selection" - the Harry Markowitz paper on mean-variance optimization - when it was published in March of 1952. I read it years later.

The ideas behind systematic and non-systematic risk continue to fascinate me.

"The Arbitrage Theory of Capital Asset Pricing" by Stephen Ross in 1976 expanded my understanding of the sources of systematic risk, and factors. One of courses I enjoy teaching is 'Multi-Factor Portfolio Construction'.

The ideas behind systematic and non-systematic risk continue to fascinate me.

Whether or not there are any truths to be found in the analysis of domestic equity markets, I'll share some of my biases:
• Cost continues is important;
• Diversification is important;
• Market risk, value and size are not the only factors one should consider;
• Macro and micro views are both important; one should zoom in and zoom out frequently;
• There's much to discuss in the active versus passive debate;
• Volatility isn’t bad, when it's on the upside, if one can stay on the rollercoaster; and
• The older I get, the more I appreciate Ben Graham's wisdom, "financial markets are a voting machine in the short-run and a weighing machine in the long-term".