On this weeks Animal Spirits, we discussed:
Ben’s take on concentration in the stock market
America is running out of caregivers
Can hindsight bias be inherited
Should new all-time highs be sold?
What about Bob, the world’s worst market timer.
Listen below
Charts mentioned
Tweets mentioned
The most you can contribute to a 401(k) is $18k per year, or $0.018 million. To get to $1m in a 401(k) you need to take a pretty crazy amount of risk. It’s not a healthy goal. https://t.co/z4lyD5e8FO
— Felix Salmon (@felixsalmon) July 12, 2018
Some investors might be more interested in the proportional risk contributions.
25% of the volatility of the S&P 500 is explained by 8 stocks (using past 252 day covariance), which cumulatively contribute the same volatility as 364 other stocks. pic.twitter.com/0bcvptnYPQ
— Adam Butler (@GestaltU) July 20, 2018
.@michaelbatnick-esque chart for ETF universe by taking top 500 ETFs:
AUM of top 5 ETFs: $688,731,065,734
AUM of ETFs #125 – 500: $690,591,535,066
Bonus stat: AUM of bottom 2,034 ETFs = $687,952,849,033 pic.twitter.com/LQe6zGnV1M
— Nate Geraci (@nategeraci) July 19, 2018
Recommendations
Bill Simmons with Jay Williams was great
How I built this with Steve Madden
