Investors intuitively know two fundamental principles of investing: (1) Don't fight the trend, (2) Don't pay too much to hold an investment. But do these simple principles actually lead to superior returns? In this paper we report the results of an empirical study covering twenty major markets...

Long-horizon investors have traditionally assumed that they do not need to purchase insurance against rare but severe events that can adversely impact their portfolios. Even where insurance is justified, it is interpreted as a “cost” that reduces the potential returns of the portfolio. In...