Why the value style outperforms growth investing, and what are the attributes of successful value investors. In this episode you'll learn: What drives the long-term performance of stocks. What it takes for a stock to outperform the market. Why growth stocks underperform value stocks. What are the qualities of skilled value managers. What is risk. Show Notes The Oakmark Fund First Quarter 1999 Shareholder Letter by Robert Sanborn The Baupost Group Margin of … [Read more...]
MNY096 Plus: Small Cap Stocks, Energy Stocks and Younger Investors
This week on Money For the Rest of Us Plus I discuss why the Hub does not include a breakdown between small cap and large cap stocks on the asset allocation models. I also comment on a member's question about his plan to start investing in energy stocks, and why I don't see evidence oil has bottomed. Finally, I address how younger investors who are still early in the wealth building process should invest compared to those who are older and have more wealth. The episode length is 18 … [Read more...]
85: Are You Home Country Biased?
Why you should invest outside of your home country. Photo by Fred Mast In this episode you'll learn: Why investing in multinational companies is not the same as global investing.What is home country bias and why does it exist.How home country bias differs between different countries.How to get inexpensive overseas stock exposure.Why have both currency hedged and unhedged international equity exposure. Show Notes The Role of Home Bias In Global Asset Allocation … [Read more...]
MNY074 Plus: The Fed and Public Stock Offerings
This week's Money For the Rest of Us Plus episode discusses the recent Federal Reserve Bank decision not to raise its short-term policy rate. I also answer a question regarding the public offering of stock by companies. The episode length is 14 minutes. … [Read more...]
48: Do You Have Too Little Invested In Stocks?
How fear of another market crash may be causing you to keep your stock market allocation overly conservative despite evidence global stock markets are in a secular bull market. Photo by 5chw4r7z In this episode, you'll learn: What are secular bull markets and secular bear markets.How do stocks perform during secular bull markets and secular bear markets.What is the duck test.What are the characteristics of secular bear market bottoms and secular bull market tops.What is the evidence … [Read more...]
MNY047 Plus: When 200 Day Moving Averages Are Breached, Corporate Buybacks and M&A
In this week's Money For the Rest of Us Plus episode, I discuss a variety of topics including: Listener feedback on MNY047 regarding income investing. The high levels of corporate stock buybacks and merger and acquisition activity. What to do when a stock holding or ETF falls below its 200 day moving average. The episode length is 15 minutes. … [Read more...]
U.S. Stocks in the 5th Year of the Decade Have Always Been Positive
In this audio lesson, I discuss the decennial cycle and how U.S. large company stock returns in the fifth year of each decade going back to the 1890s have always been positive. In the lesson, I share: What is the decennial cycle. The surprise 5th year of the decade returns. Why stocks might always be positive in the 5th year. What to do about it. The episode length is 7 minutes. … [Read more...]
Seasonality and Stock Returns
The phrase "Sell In May and Go Away" is true as stock returns are lower in the summer. In this audio lesson I share: How lower stock returns in summer refute the efficient market hypothesis. Examples of the superior returns achieved from October through January. The powerful returns during the third year of a U.S. Presidency. How I adjust my portfolio to take advantage of seasonality. The lesson length is 7 minutes Audio Lesson Download this audio lesson Lesson … [Read more...]
Why I Increased My Exposure To China
In Episode 17: Why China Matters To Your Pocketbook, I discussed why I had an investment in Chinese stocks. I recently doubled my allocation to China via two exchange traded funds. … [Read more...]
26: Why Are Stocks Falling? – A Story
How stories drive the financial markets and why markets are currently declining. Photo by QQ Li In this podcast, you'll learn: What are money manager beauty pageants.How financial markets are driven by stories.Why we shouldn't invest based on stories.Why it's important to understand market conditions.What are today's conditions in terms of market valuations, the economy, sentiment and momentum.What is earnings yield.What is the level of conviction buy-and-hold investors … [Read more...]
