In Plus episode 486, we review how to estimate expected returns when a fund or ETF holds callable bonds. We consider two questions from members worried about high valuations for the U.S. stock market. We discuss the long-term viability of Robinhood. Finally, we discuss ways to reduce the tax headache of owning cryptocurrency. … [Read more...]
371 Plus: The Market Sell-off and Two Tactical Asset Allocation Services
In Plus Episode 371, we review some recent commentary by Jeremy Grantham on superbubbles as it relates to the current stock market sell-off. We also review Allocate Smartly and Hedgeye, two model portfolio and tactical asset allocation services. … [Read more...]
365: Why Some Asset Bubbles Don’t Burst
What conditions need to be in place for an asset bubble to continue and how that applies to stocks, cryptocurrency, and houses. Topics covered include: How to determine if there is an asset bubbleWhat are microbubbles and anti-bubblesHow the cannabis stock bubble burstWhat is required to sustain an asset bubbleHow the current runup in home prices differs from the housing bubble in the mid-2000sWhat structural changes have led to the high valuations for U.S. stocksWhat is the Great … [Read more...]
339 Plus: Mid Month Update, Bond Valuations, and a Cannabis Bubble Follow Up
In Plus episode 339 for the week of April 23, 2021, we look at the latest economic releases to assess investment conditions. We answer a member's question on what does it mean when pundits say bonds are expensive and how is that determined. Finally, we look at how cannabis stocks performed three years after the peak of the 2018 cannabis bubble. … [Read more...]
329: Meme Stocks, GameStop, Short Squeezes, and Bubbles
How coordinated buying by retail investors has turned the tables on Wall Street. Are there signs of a market bubble? Topics covered include: What are meme stocks Why GameStop's stock (GME) has soared to over $300 from $17 in less than a month What are short squeezes and gamma squeezes and how they can push up a stock price How short-sellers including hedge funds are losing big against individual investors on the wallstreetbets subreddit Is coordinated buying of options and … [Read more...]
315: Are We Being Forced to Buy Stocks?
How ultra-low interest rates support higher stock market valuations but also make the investment environment more challenging. Is there a stock market bubble? Topics covered include: How expensive are stocks on an absolute basis and relative to bondsWhat are examples of individual investor enthusiasm for stocksWhy stock valuations and prices increase when interest rates fallWhy lower interest rates making it more difficult for central banks to support stocks during a downturnWhy TIPs … [Read more...]
234: Index But Don’t Herd
How and when to use passive indexing strategies without following the crowd. Photo by Davide Ragusa In this episode you’ll learn: How big is indexing and why has it taken so long to catch on.What areas has active management done well.What are ways we can index without following the crowd. Show Notes Jeffrey Gundlach says passive investing has reached a 'mania' – investors should avoid index funds - CNBC Passive investing continues to captivate global audience - … [Read more...]
226: How To Spot Asset Bubbles and What To Do About Them
What are the characteristics of an asset bubble and how to invest when one exists. Are cannabis stocks in a bubble? Photo by Rick Proctor In this episode you’ll learn: How actions of investors determine whether there is a bubbleWhy cannabis stocks could be in a bubble.How to invest when there is a bubble and manage the fear of missing out. Show Notes Why Marijuana Stocks Cronos Group, Canopy Growth, and Tilray Jumped Today - The Motley Fool Yes. It's A Bubble. … [Read more...]
182: Was Tulipmania Just Like Bitcoin?
What caused tulip mania in the 17th century in the Netherlands and how is it similar to Bitcoin? Photo by Andrean Valeanu In this episode you’ll learn: Why discretionary income is needed for a mania to occur.Why the tulip trade was one of the first futures market.How much were speculators paying for tulip bulbs at the top of the market.What was the impact of the tulip bulb crash.How Bitcoin is like tulipmania. Show Notes JPMorgan's Dimon says bitcoin is a fraud that will … [Read more...]
163: Is There An Indexing Bubble?
How an indexing bubble is manifest, why most active managers underperform and how individuals can structure their own quasi index fund that outperforms the market. Photo by Sebastian Pichler In this episode you’ll learn: How popular is indexing.Why mathematically do active managers underperform.How to outperform a capitalization weighted index.How to build your own quasi index fund. Show Notes The 25 Largest Mutual Funds and ETFs - MarketWatch The Makeup of the S&P 500 … [Read more...]
