Animal Spirits Talk Your Book: The Low Vol Anomaly

Today’s Animal Spirits talk your book is brought to you by Invesco. To learn more about their ETFs, click here. On today’s show, we talk about: What is the low volatility anomaly? Why CAPM doesn’t work within an asset class The three behavioral and structural reasons for the low vol anomaly How often do different…

These Are the Goods

Articles When all you’ve experienced is a bludgeon it’s hard to remember that the next hit could just be a little smack By Morgan Housel Nobody thinks they have joined a cult By Bob Seawright Nobody has a clue how any of this stuff works By Christopher Haigh The internet has unlimited shelf space By…

You’re a Liar

Brendan Mullooly asked a bunch of people the following question: What do you consider to be your biggest behavioral bias (as it pertains to investing or personal finance) and how do you work to control it? My answer: Hindsight bias was my biggest hurdle to overcome. Hindsight bias makes one part of our brain lie…

The Twenty Craziest Investing Facts Ever

1. Since 1916, the Dow has made new all-time highs less than 5% of all days, but over that time it’s up 25,568%. 95% of the time you’re underwater. The less you look the better off you’ll be. 2. The Dow has compounded at less than 3 basis points a day since 1970. Since then…

Animal Spirits: Where Were You At the Bottom?

Mention Animal Spirits to receive 20% off (*New YCharts users only) Stories Discussed: What happened to recessions? Bill Gross is now retired The ETF War How to value Lyft before its IPO People are using their credit cards Survey Chasing hot hands Nobody wants long/short funds Changing your mortgage payments Guide to alternatives Why do people move?…

Just Save More Money

The chart below comes from J.P. Morgan’s guide to retirement.   I like how they frame retirement in terms of things you have total control over, things you have some control over, and things you have no control over. The items they’ve identified as out of your control are pretty cut and dried. Markets owe us nothing….

These Are the Goods

Articles They are being robbed every single day By Ryan Krueger It’s time for young people to stop blaming others for their problems By Ben Carlson Most of the social media networks we study generate much more social capital than actual financial capital By Eugene Wei Maybe there is a better way to discuss money…

What Happens After You Win?

When I’m in a casino I tend to do two things: I bet conservatively when I’m winning I bet aggressively when I’m losing. This is not consistent with rational behavior, but evidently I’m not alone. This affliction runs rampant in our species. Economists reviewed more than five hundred thousand online poker hands and looked at…

Animal Spirits: I Will Say This

Today’s Animal Spirits is presented by YCharts Mention Animal Spirits to receive 20% off (*New YCharts users only) Stories Discussed Killer Vees The father of millennial socialism American domination Should you prepay your mortgage? The guy who wrote the book on how to detect fraud Imagine moderating Facebook all day? The law says markets are efficient The…

Just A Little Bit More

Chris Bosh, two-time NBA champion, was recently on the Bill Simmons podcast talking about the unhappiness of today’s superstar. Wait, what? It’s hard to imagine how a 23-year old kid who signs a five year, $127 million deal could be anything other than giddy all the time. This type of thing is possible because the 23-year old…