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What funding perception do you maintain that the overwhelming majority of your friends (75%+) don’t share?
In 2019, I made a decision to start out publicly answering the query above and including to it over time. You may try the whole thread right here, however my latest podcast with Michael Batnick and Ben Carlson touched on the identical subject so at their ‘nudging,’ I’m sharing the whole checklist under too.
Apologies for offending anybody prematurely!
2019
1. Investing based mostly on dividend yield alone is a tax-inefficient and nonsensical funding technique.
See our outdated e-book, Shareholder Yield: A Higher Strategy to Dividend Investing, for more information, free obtain right here.
2. The Federal Reserve has performed a great job.
I publicly say on a regular basis that they need to simply peg the Fed Fund Fee to the 2-year, and my buddy Tom McClellan has a great chart illustrating this view…
3. Pattern following methods deserve a significant allocation to most portfolios.
Now we have in all probability the best development allocation of any RIA that I do know with our Trinity fashions, the default allocation is half!
4. A primary low value world market portfolio of ETFs will outperform the overwhelming majority of establishments over time.
See our outdated GAA e-book for more information, free obtain right here.
5. US buyers ought to be allocating a minimal of fifty% of their inventory allocation to non-US international locations.
Try 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’ve got among the essential components (world shares, bonds, actual property) your asset allocation doesn’t actually matter. What does matter is charges and taxes.
See our outdated GAA e-book for more information, free obtain right here. Plus, right here’s an outdated Twitter thread on the subject.
8. A easy quant display on public shares will outperform most personal fairness funds.
Study extra about this by listening to my previous podcast episodes with Dan Rasmussen & Jeff Hooke.
9. An inexpensive timeframe to guage a supervisor or technique is 10, perhaps 20 years.
We wrote a paper on this subject, you may 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 subjects earlier than (learn right here)
11. A passive index just isn’t 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 shifting to a scientific portfolio of ETFs.
You needed to know I wrote a weblog submit about this, proper? CalPERS lastly advised 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 at all times have. Which is, usually. Brief squeeze? Yawn, been occurring endlessly.
Jamie Catherwood had an important submit on the historical past of brief squeezes.
15. Excessive inventory market valuations should not justified by low rates of interest.
Learn my submit about this from January 2021 right here.
16. A worldwide diversified portfolio of property is *much less dangerous* than placing your protected cash in brief time period bonds or payments.
This is likely one of the subjects lined in The Keep Wealthy Portfolio submit.
2022
17. The CAPE Ratio is a helpful indicator and issue.
Right here’s my FAQ with every little thing it’s worthwhile to know in regards to the CAPE Ratio.
18. It doesn’t have an effect on your funding consequence if you happen to personal US shares. You could possibly personal 0% and just do high-quality.
Right here’s my tweet about this with the chart under.
19. A portfolio of sovereign bonds weighted by yield is superior to at least one weighted by market cap and whole debt issuance.
Learn our white paper on this right here.
20. Placing your whole cash into one asset, just like the S&P500, just isn’t “boring”.
… to be continued …
Am I overestimating how a lot I disagree with others? What are beliefs you disagree along with your friends on? Be happy to answer to the unique thread right here.
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