What funding perception do you maintain that the overwhelming majority of your friends (75%+) don’t share?
In 2019, I made a decision to begin publicly answering the query above and including to it over time. You may try the whole thread right here, however my current podcast with Michael Batnick and Ben Carlson touched on the identical subject so at their ‘nudging,’ I’m sharing the whole record beneath too.
Apologies for offending anybody upfront!
2019
1. Investing based mostly on dividend yield alone is a tax-inefficient and nonsensical funding technique.
See our previous e book, Shareholder Yield: A Higher Method to Dividend Investing, for more information, free obtain right here.
2. The Federal Reserve has completed a great job.
I publicly say on a regular basis that they need to simply peg the Fed Fund Charge to the 2-year, and my good friend Tom McClellan has a great chart illustrating this view…
3. Development following methods deserve a significant allocation to most portfolios.
We now have in all probability the very best pattern allocation of any RIA that I do know with our Trinity fashions, the default allocation is half!
4. A primary low price world market portfolio of ETFs will outperform the overwhelming majority of establishments over time.
See our previous GAA e book for more information, free obtain right here.
5. US buyers must be allocating a minimal of fifty% of their inventory allocation to non-US nations.
Take a look at our submit “The Case for World Investing” for more information.
6. 13F replication is a greater strategy to investing in most long-term hedge funds than investing within the hedge funds themselves.
Make investments with the Home free e book obtain right here.
7. So long as you could have among the primary elements (world shares, bonds, actual belongings) your asset allocation doesn’t actually matter. What does matter is charges and taxes.
See our previous GAA e book for more information, free obtain right here. Plus, right here’s an previous Twitter thread on the subject.
8. A easy quant display on public shares will outperform most non-public fairness funds.
Study extra about this by listening to my previous podcast episodes with Dan Rasmussen & Jeff Hooke.
9. An affordable time-frame to judge a supervisor or technique is 10, possibly 20 years.
We wrote a paper on this subject, you possibly can learn it right here.
10. I don’t really feel like I’ve to have an opinion on Telsa inventory.
Though I’ve shared my opinion with Elon on different matters earlier than (learn right here)
11. A passive index will not be the identical factor as a market cap index (anymore).
2020
12. Monetary advisors and asset managers are 4x leveraged the inventory market, and will/ought to hedge that publicity….and even personal no US shares!
Learn our longer submit on the subject right here.
13. Most endowments and pensions could be higher off firing their employees and transferring to a scientific portfolio of ETFs.
You needed to know I wrote a weblog submit about this, proper? CalPERS lastly instructed me they received’t rent me to do that. I attempted…
2021
14. Everybody likes to complain about manipulation, THE FED, r/wsb, yadda yadda… Markets are functioning as they all the time have. Which is, usually. Brief squeeze? Yawn, been occurring without end.
Jamie Catherwood had an amazing submit on the historical past of quick squeezes.
15. Excessive inventory market valuations aren’t justified by low rates of interest.
Learn my submit about this from January 2021 right here.
16. A world diversified portfolio of belongings is *much less dangerous* than placing your secure cash briefly time period bonds or payments.
This is without doubt one of the matters lined in The Keep Wealthy Portfolio submit.
2022
17. The CAPE Ratio is a helpful indicator and issue.
Right here’s my FAQ with all the things it is advisable to know concerning the CAPE Ratio.
18. It doesn’t have an effect on your funding end result in the event you personal US shares. You can personal 0% and just do effective.
Right here’s my tweet about this with the chart beneath.
19. A portfolio of sovereign bonds weighted by yield is superior to 1 weighted by market cap and complete debt issuance.
Learn our white paper on this right here.
… to be continued …
Am I overestimating how a lot I disagree with others? What are beliefs you disagree along with your friends on? Be at liberty to answer to the unique thread right here.
