JOHN C. BOGLE

Besides tax-loss harvesting and repurchases, and investors putting cash bonuses into the market, the January Effect is affected by investor psychology.

• Some investors feel that January is the best month to begin an investment program.
• Others think that mutua...

• Investing is basically “bearing risk in pursuit of profit.”
• The ability to understand, assess, and deal with risk is the mark of the superior investor and an essential requirement for investment success.
• The way investors are collectively viewing risk, and behaving in regard ...

Of course, I also dismiss the idea that the alpha term in the equation has to be zero. Investment skill exists, even though not everyone has it. Only through thinking about risk- adjusted return might we determine whether an investor possesses superior insight, investment skill or alpha . . . tha...