According to a recent Morningstar report, “shareholders of major U.S. stock market index funds have about 40% foreign exposure, as measured by corporate revenues.” Does this mean that U.S. investors already have plenty of overseas exposure, eliminating the need to diversify into international stocks? Let’s go to the scorecard. The S&P 500 destroyed international stocks since 1970,…
Articles Where’s the Venn diagram overlap between why writers write and why readers read? By Meb Faber Think of the U.S. stock market as one holding company named USA, Inc By Ehren Stanhope Investors do not like to bet on underdogs By Ryan Krueger How many thousands of quarterly investment letters have gone out to…
When I bought my apartment in 2015 I hired a broker. When I went to sell, however, I did it on my own. Sort of. I’ve never sold a piece of real estate before so why did I think I could pull this off? Let me tell you about my experience on the buy side:…
Today’s Animal Spirits is presented by YCharts Mention Animal Spirits to receive 20% off (*New YCharts users only) Stories discussed: Zillow wants to flip your house Are auto loans the next subprime? Student loans for people over 600 How big should your next egg be? New Mauboussin Charlie Munger has no filter Wealthfront cash account Tax returns…
I spend the majority of this space writing about the challenges associated with investing. I even wrote a whole book on it. Why am I such a Debbie Downer when it comes to this stuff? Well, maybe it’s sour grapes. Look, I tried for years to beat the market, couldn’t do it. Then over time…
Do investors really need to hear from management every 90 days? The 13-week cycle of reporting earnings and issuing guidance breeds short-term thinking and invites the wrong kinds of questions. Going from quarterly reporting to a biannual system could allow for a sharper focus on running the business rather than wasting time on the business…
Articles Crowded trades work until they don’t By Michael Mauboussin Every recession begins with a softening of the data, but so too does every weak patch in the economy. By Tim Duy Investors are typically led to develop their factor return expectations with little more than an extrapolation of the factor’s past paper-portfolio returns. By…
Earlier this week I moderated a session at Inside ETFs called “How to capture outperformance and manage risk.” Before tackling the challenges of outperformance, I wanted to ask everybody how they think about the amorphous concept of risk. The responses ran the gamut from “the chance of permanent loss of capital” to “the chance of…
Today’s Animal Spirits is presented by YCharts Mention Animal Spirits to receive 20% off (*New YCharts users only) Stories discussed: Record flows out of stock funds The ETF business is not easy A new way to think about stocks in retirement Mind-boggling mistakes Expected returns for private equity The Jim Simons IRA One of the best stock…
I never aspired to be an insurance salesman. I ended up in that role because the barriers to entry are non-existent, and more importantly, because I didn’t have other options. Like a lot of young people who enter that world, I was chewed up and spit out in a short period of time. In any…
