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 possibly can take a look at the complete 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 complete listing beneath too.
Apologies for offending anybody prematurely!
2019
1. Investing primarily based on dividend yield alone is a tax-inefficient and nonsensical funding technique.
See our outdated guide, Shareholder Yield: A Higher Strategy to Dividend Investing, for more information, free obtain right here.
2. The Federal Reserve has achieved a great job.
I publicly say on a regular basis that they need to simply peg the Fed Fund Price to the 2-year, and my good friend Tom McClellan has a great chart illustrating this view…
3. Pattern following methods deserve a significant allocation to most portfolios.
Now we have most likely the very best development 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See our outdated GAA guide for more information, free obtain right here.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.
Try our put up “The Case for International Investing” for more information.
6. 13F replication is a greater method to investing in most long-term hedge funds than investing within the hedge funds themselves.
Make investments with the Home free guide obtain right here.
7. So long as you may have a number of the essential elements (world shares, bonds, actual property) your asset allocation doesn’t actually matter. What does matter is charges and taxes.
See our outdated GAA guide for more information, free obtain right here. Plus, right here’s an outdated Twitter thread on the subject.
8. A easy quant display screen 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 inexpensive time-frame to guage a supervisor or technique is 10, possibly 20 years.
We wrote a paper on this subject, you’ll be able to 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 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 put up on the subject right here.
13. Most endowments and pensions could be higher off firing their workers and shifting to a scientific portfolio of ETFs.
You needed to know I wrote a weblog put up about this, proper? CalPERS lastly advised me they gained’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 happening ceaselessly.
Jamie Catherwood had an important put up on the historical past of quick squeezes.
15. Excessive inventory market valuations usually are not justified by low rates of interest.
Learn my put up about this from January 2021 right here.
16. A world diversified portfolio of property is *much less dangerous* than placing your protected cash briefly time period bonds or payments.
This is without doubt one of the matters coated in The Keep Wealthy Portfolio put up.
2022
17. The CAPE Ratio is a helpful indicator and issue.
Right here’s my FAQ with all the pieces you want to know concerning the CAPE Ratio.
18. It doesn’t have an effect on your funding consequence if you happen to personal US shares. You possibly can personal 0% and do exactly superb.
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.
20. Placing all your cash into one asset, just like the S&P500, 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.
