Gambling in the stock market is increasing, with most traders losing money while generating billions of dollars per year for brokerages and wholesalers. Will all this trading lead to big market swoons? Topics covered include: Why sports gambling has grown so much How gambling in the stock market is measured, and how prevalent is it Why most traders lose money but continue to trade anyway How uninformed traders improve market liquidity and encourage trading by informed … [Read more...]
482: Unlocking the Power of Positive Skewness: Strategies for Investing, Business, and Creativity
How a few high-impact successes drive up overall average outcomes in investing, business, and creative projects. How to harness positive skewness using a barbell approach. Learn when to mitigate risks and when to embrace them. Topics covered include: What is positive skewness and how does it manifest in investing, business and creative endeavors How power laws and the 80/20 rule work Why we shouldn't beat ourselves up if we aren't incredibly successful When should we reduce … [Read more...]
460: Should You Be Invested 100% in Stocks Before and During Retirement? A Recent Study Says Yes.
The pros and cons of investing your retirement assets 100% in equity, including half in international stocks. Why the 4% spending rule is too aggressive. Topics covered include: Why historical asset class return studies that use only U.S. data are biased How researchers build a broader database to study retirement outcomes and spending rates How a 100% stock portfolio performed compared to balanced portfolios and target date funds Why investors should have half their assets … [Read more...]
451: How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market
Our allocation to risky assets should vary based on the expected return, volatility, risk aversion, and how much we can earn risk-free. That means we should be taking less risk right now. Listen to learn why. Topics covered include: Why there are so few billionaires Why the hedge fund Long Term Capital Management imploded Why how much to invest is more important than where to invest How the Merton share formula can assist with determining what percent of our wealth to invest … [Read more...]
Why You Should Rebalance Your Portfolio
What you need to know about rebalancing methods, timing, and the impacts of volatility ARTICLE TABLE OF CONTENTS (Skip to Section) Positive Skewness and Faulty EmotionsDon’t Let High Volatility Drag You DownWhen Rebalancing Becomes ImbalancedTiming Isn’t Everything Rebalance Your Portfolio the Way That’s Best for YouPodcast Episode 356: How, When, and Why Should You Rebalance Your Investment Portfolio by EMILY BOULTER & | Updated You know that your portfolio … [Read more...]
