Low Cost Index Investing with Rick Ferri: What You Need To Be a Successful Index Investor (EP.33)
Today on the show we are joined by Rick Ferri. Anyone who follows or is interested in index investing will probably have read something of Rick’s. He’s written seven books, working on the eighth, and he’s written a ton online as well. Rick opened Portfolio Solutions, the first low fee index fund based wealth management shop and built it up to over a billion dollar company. Rick created the model of low cost fiduciary advice, using index funds and putting the client first, so today we’re chatting to him all about it. Inside this episode Rick shares why he is so passionate about low cost index investing, the four levels of an index investor, and the requirements for being a good index investor in the long term. We also talk about his relationship with John Bogle, who recently passed away. It was a pretty meaningful conversation! For this and more, be sure to join us on today’s episode! Key Points From This Episode: Rick’s passion for low cost index investing. [0:02:24.0] The four levels of an index investor. [0:05:0] Dimensional funds: active management that uses factor based investing principles.[0:10:29.0] None market risk factors fitting into a portfolio. [0:11:54.0] Rick’s thoughts on the price and the value around behavioral coaching. [0:13:44.0] The future of robo-advisers. [0:18:14.0] Three things required for a person to be a good index investor in the long term. [0:18:54.0] Not indexing yet? - You need repetition, repetition, repetition. [0:20:28.5] Having more assets than they’ll ever need in term of their equity exposure. [0:22:40.0] John Bogle as a person and how he changed the financial services industry. [0:24:33.5] How Rick defines success. [0:29:05.0] And much more!
14 Feb 2019
Five Factor Thinking: Using Factors to Spot Trends and Guide Decision Making (EP.40)
On today’s episode, Benjamin Felix and Cameron Passmore discuss a paper that Benjamin recently wrote called Factor Investing with ETF’s, which unpacks what factors are and why they are a useful tool in explaining performance. Before discussing Benjamin’s paper, they take some interesting detours, discussing annuities and the newly launched ALDA, why annuities are underutilized and what makes them different from portfolios. Along with this, they also cover some questions that can be asked to measure past performance of funds as well as luck versus skill. They share their insights into the Fama-French three factor model, how it evolved into a five-factor model and why they believe this to be a reliable way to read trends. For all this and a whole lot more, join us today! Factor Investing with ETFs Key Points From This Episode: Seller’s Capital: a hedge fund with an interesting investment philosophy. [0:02:46.0] The four questions to ask if you see why past results were good. [0:07:00.0] What it would take for results to be statistically significant. [0:07:54.0] Growing evidence of poor skill level of hedge fund manager. [0:09:53.0] Good returns are not related good decision making. [0:11:27.2] Annuities are underutilized and why it makes sense to use them more. [0:17:00.3] Annuities versus portfolios. [0:18:58.3] Some figures from the Dimension paper which was written. [0:23:26.3] What factors are. [0:26:41.3] What can be learned from the Fama-French model. [0:30:41.3] What the five factor model can help with. [0:33:48.0] Some critiques of using the factors. [0:38:50.0] Benjamin provides examples of using factors for evidence. [0:40:10.0] And much more!
4 Apr 2019
A Planning Checklist, Portfolio Concentration, and Leverage (EP.80)
For our very first episode of 2020, we kick things off with some quick updates before sharing Cameron’s ten best financial planning strategies for the new year. After laying out some statistics about the great asset class returns that 2019 saw, we get into the wonderful listener questions we have been receiving over the break. Our first topic is about buying versus leasing cars, and Ben shares his thoughts on some of the reasons he recently converted to leasing. Our second question is about using credit to invest in a TFSA and acts as a great segue into our main topic for today’s show: implementing leverage in an investment portfolio. We discover some fascinating outputs given by a Monte Carlo simulation that compares the reliability of expected returns between diversified and concentrated investment portfolios. Surprisingly, the concentrated portfolio, while unpredictable, actually produces higher returns, even in its worst iterations. We start to think of concentrated portfolios as just another form of leveraging after comparing IUSV to VLUE ETFs, and then move on to the idea of time diversification as it relates to implementing leveraging in Lifecycle investing. As always, we end off with our bad advice of the week, with the 60/40 stocks and bonds model taking centre stage, so hop on and join us for the ride! Key Points From This Episode: Different corporate cultures and the value of instilling one in your workplace. [0:05:55.0] A top ten list of strategies for financial planning in 2020. [0:08:48.0] Asset class returns from 2019 which were very high across the board. [0:15:34.0] Market unpredictability and why to buy a second-hand car but lease a new one. [0:19:18.0] When to use your unsecured line of credit to invest in a tax-free savings account. [0:22:49.0] Three things that structure a belief: values, biases, and models. [0:24:51.0] Ben’s model and expected returns of diversified vs concentrated portfolios. [0:27:49.0] When concentrated portfolios work well: if high performing stocks are chosen. [0:34:01.0] Ways to achieve higher factor exposure with IUSV vs VLUE ETFs. [0:35:47.0] How unexplained portions of returns are the costs of leveraging via concentration. [0:40:40.0] Why investing using leverage creates ‘time diversification’ and higher yields. [0:42:47.0] Ways for young people to leverage their savings: concentration, derivatives, etc. [0:42:47.0] Time decay on leveraged ETFs and other reasons for leveraging not being a joke. [0:50:52.0] Why ditching a 60/40 portfolio denies market efficiency by increasing risk. [0:55:36.0] And much more!
9 Jan 2020
RETHINKING MORTGAGE DEBT (EP.5)
In Episode 5 of the Rational Reminder podcast we discussed the following: Checking your credit Optimizing your credit score Investing vs. paying off your mortgage Asset allocation Reframing mortgage debt Are we in a tech bubble? The rise in the US market is backed by fundamentals How the largest Canadian pension funds invest Skewness in VC returns It’s still really hard to beat index funds The stories we talked about: Mortgage debt and asset allocation Fed Up Andrew Coyne: Canada Pension Plan's active management strategy is a crock Tiny Wisconsin College Using Index Funds Trounces Endowment Rivals The charts we talked about: Source: Raymond Kerzhéro, PWL Capital Source: Raymond Kerzhéro, PWL Capital Source: Raymond Kerzhéro, PWL Capital Source: Correlation Ventures For more information or to contact Cameron and Ben, visit pwlcapital.com
14 Aug 2018
Most Popular Podcasts
Decision Making: Mental Models, Knowing Your Variables, and Achieving Positive Outcomes With Shane Parrish (EP.19)
Welcome back to another episode of the Rational Reminder Podcast. Our guest today is Shane Parrish. Shane runs the Farnam Street Blog, which has to be one of the most valuable collections of information that exists on the Internet. Farnam Street’s stated intention is mastering the best of what other people have already figured out and the site gets over a million visitors. The content is unbelievable in terms of improving yourself, thinking better, and learning better. Shane interviewed Ray Dalio not long ago and over time he’s spoken with some pretty serious people in his podcast, The Knowledge Project Podcast. This episode is a very peaceful, thoughtful, interesting conversation that we know listeners will love. Shane’s just got so much information in his head that we all can get a ton of value from. So, be sure to keep listening to hear more! Key Points From This Episode: What mental models are and why they’re important. [0:02:07.0] Top list of mental models for making investing decisions. [0:03:39.0] The most harmful biases to investors. [0:04:44.0] Importance of process when making investment decisions. [0:07:51.0] Why Shane uses decision journals. [0:09:11.0] Being willing to look stupid. [0:12:36.0] How intuition and skills go together in investing. [0:14:16.0] Public markets versus private markets. [0:16:19.0] Avoiding negative outcomes and having positive outcomes. [0:20:41.0] Understanding uncertainty and risk. [0:24:35.0] Defining happiness for himself. [0:33:15.0] Lessons Shane learned about parenting. [0:36:28.0] Book that Shane loves to read. [0:43:55.0] . [0:25:50.0] And much more! For more information or to contact Cameron and Ben, visit pwlcapital.com
7 Nov 2018
AMAZON EATING THE STOCK MARKET (EP.3)
In Episode 3 of the Rational Reminder podcast we discussed the following: Should you lease or buy your vehicle? How are the new mortgage stress tests affecting Canadian real estate? Home ownership is not required to build wealth, with a little discipline Amazon’s size is not unprecedented Successfully investing in growth stocks is really hard Consolidation in the Canadian asset management industry Independence benefits wealth management clients Are backend loads on mutual funds still a thing? Fund companies pushing anti-evidence Financial advice is about more than just the portfolio We are still waiting for lower stock valuations, high inflation, and high interest rates If you’re not worried, you don’t have a high expected return Are we living in exceptionally uncertain times? Small cap and value returns comes from rebalancing The stories we talked about: Report on the Housing and Mortgage Market in Canada Federal policies suppressing housing activity, creating a negative shift in sentiment for homebuyers, according to latest consumer report Amazon’s eating the world – and the stock market Is Amazon Changing the World, and the Stock Market? The Most Valuable Companies of All-Time TD Bank becomes Canada's biggest money manager with $792-million deal to buy Greystone Managed Investments Banning Embedded Commissions Would Not Have Fixed Financial Advice in Canada Transforming Practices in the Wealth Business: A preliminary assessment of the June 2018 CSA reforms to the client-advisor relationship Not So Predictable In these uncertain times The charts we talked about: Source: Financial Market History: Reflections on the Past for Investors Today, CFA Institute Source: Visual Capitalist For more information or to contact Cameron and Ben, visit pwlcapital.com
3 Aug 2018
Quantitative Investing: The Solution to Human Bias with Wes Gray (EP.69)
Today we are joined by Wesley Gray who is the CEO of Alpha Architect, a firm in the US that specializes in concentrated factor strategies. Having completed his MBA and PhD at the University of Chicago – the Harvard of the finance world – Wes is an authoritative voice when it comes to quantitative research and factor investing. Incredibly, he took a 4-year break during his PhD, joined the marines and went to Iraq, and has also written several books. He went from value investor and stock-picker to having a strong quant focus and realized that it was possible to eliminate the human biases while still capturing the factor premiums. Our talk with Wes illuminates the nuanced nature of factor investing, behaviour versus risk-based factor premiums and active management versus passive and indexing. He discusses the process of collecting data for his PhD, the rules according to which they structure portfolios, how their boutique firm differs from larger advisor companies and who their ideal client is. Wes also shares his views on selecting the best quant model, hedge funds, value premiums and market-cap indexing. Join us for another insightful episode! Key Points From This Episode: Wesley’s experience as a stock picker and riding the wave of small-cap value. [0:03:31.0] The Value Investors Club as a data source to test stock-picking skills for his PhD. [0:06:43.0] From stock picker to a quant and realizing the need to eliminate biases. [0:09:38.0] The rules that govern how they build portfolios in his firm Alpha Architect. [0:14:26.0] Comparing Alpha Architect to Dimensional Fund Advisors and AQR. [0:17:13.0] Understanding reliability in the context of relativity and defining their ideal client. [0:22:28.0] Advice for retail investors about quant shops and choosing the best quant model. [0:26:55.0] Wesley’s view on hedge funds and their strategies. [0:32:57.0] Why education rather than assets should determine the active risk that is included in a portfolio. [0:36:24.0] Thinking about persistence in the context of a behavioural component. [0:38:03.0] Why value premiums are not dead and how it relates to behavioural theory. [0:43:22.0] The global explosion of market cap indexing and guidelines for investing. [0:47:28.0] And much more!
24 Oct 2019
Staying Ahead of the Curve: The History of Dimensional Fund Advisors (EP.28)
Today on the podcast we are very excited to welcome Brad Steiman who is the Canadian Head of Financial Advisor Services for Dimensional! This is an episode we literally cannot wait to share with our listeners as it is jam packed with really useful information, history, and inside scoops on Dimensional and what has helped them get to where they are today. As huge fans and associates of DFA this is the type of conversation we have been hoping to have for quite some time and hope you are as excited as we are. In our discussion, we cover Brad’s early career and how he became involved and employed by Dimensional. From there, Brad gives us some great insight into the important early events that shaped his and the companies trajectories as well as laying out the vital characters in DFA’s story. We also get into some of the ideas and the ethos that underpins the work done at the company, particularly around research, findings and implementation. For all of this and host of other interesting subjects be sure to join us for this episode! Key Points From This Episode: Brad’s initial attraction to working at Dimensional. [0:01:45.5] The college years and the following epiphanies. [0:02:37.9] Why Brad did not look at his early paychecks at Dimensional. [0:06:29.3] How David Booth preempted the evidence-based approach. [0:08:53.1] Dimensional’s continual approach to new research and data mining. [0:14:55.5] The criteria Dimensional apply when assessing findings. [0:17:26.9] Brad and Dimensional’s philosophy when it comes to stock momentum. [0:20:41.1] The implementation strategy at Dimensional. [0:25:51.1] ETFs versus mutual funds and Dimensional’s decision in this battle. [0:28:05.1] Dimensional’s unique approach to working with the advisor community. [0:30:51.5] Three of Brad’s favorite stories from his time at the company. [0:32:49.6] Brad’s science based approach to happiness! [0:37:34.1] And much more! For more information or to contact Cameron and Ben, visit pwlcapital.com
9 Jan 2019
Financial Theory in Practice: Gaining Insight from Models with Marlena Lee (EP.79)
Today on the show we welcome the Head of Investment Solutions at Dimensional Fund Advisors, Marlena Lee. Marlena has a Ph.D. from the University of Chicago where she served as the TA to Eugene F. Fama. She has been at Dimensional for 11 years where a big part of her role is communicating what their research team is doing for the advisors and clients who are using their products. In this fascinating episode, we discuss and define models, factors, and the importance of understanding the risks involved with any investment decision. We talk about the many different reasons why stocks have different returns, and what the research says about underperformance and our expectation of positive premiums. Marlena has some interesting perspectives on whether risk or behavior drives higher returns, and shares some of her biggest lessons gained from working with Eugene Fama, and Dimensional Fund Advisors. Key Points from This Episode: The uses and limitations of models when making investment decisions. [0:02:30.0] Understanding the concept of ‘factors’ and why the word is evolving. [0:04:35.0] Why Dimensional doesn’t combine Price-to-Book with price sales and cashflows. [0:13:10.0] Marlena’s thoughts on whether risk or behavior drives higher returns. [0:15:15.0] The theoretical rationale for why we expect the value premium to be positive. [0:21:00.0] The role of company size in identifying differences in expected returns. [0:25:10.0] The split between dividend income and capital gains: What is the trade-off? [0:27:40.0] How to choose which Factor Model to use for your investing decisions. [0:31:15.0] The good arguments for owning bonds in your portfolio as a young investor. [0:35:00.0] Risk factors and equities when it comes to fixed-income and bonds versus stocks. [0:38:00.0] Questions investors should be asking about fees, risk, and portfolio worth. [0:41:48.0] Evidence that investors can use Yield Curve Inversions to time the market. [0:43:33.0] Marlena shares her most fascinating research topics and economic debates. [0:43:33.0] Marlena shares her biggest lessons gained from working with Eugene Fama. [0:48:13.0]
2 Jan 2020
Everything that you could ever know about ETFs with Dave Nadig (EP.71)
Today we welcome Dave Nadig onto the show, who joins us off the back of a brilliant presentation he gave at the Wealth Stack conference last month in Scottsdale. Dave is the founder of etf.com and has had key positions at FactSet, Barclays Global Investors, and Cerulli previously. Today Dave sits down to talk about the difference between ETFs and mutual funds, EFT product saturation, the coming of Direct Indexing and well as non-transparent active funds, and risk probabilities in different asset security options such as gold and stocks. He also debunks the myth that ETFs lead to a pricing bubble, highlighting 401(k)s as part of what might be creating this illusion of top-heaviness. He also has a brilliant perspective on trusting the junk bond through a seeming disconnect, which is really one of timing that actually creates opportunities for price discovery. Dave also spends some time on the subject of his belief that the science of investing is largely figured out. He believes therefore that human behavior and decision making through a lifetime investment path is far more mysterious, and highlights the need for good financial advisors in this respect. Join us to take a deep dive into the world of ETFs with Dave today! Key Points From This Episode: Dave’s perspectives on content and education in improving investor outcomes. [0:01:58.2] ETFs as a vehicle for trading multiple stocks, or wrappers for holding securities. [0:03:36.9] Authorized participants are what makes ETFs different from mutual funds. [0:04:46.1] Why the timing disconnect in junk bonds creates a vector for price discovery. [0:09:33.0] Why 401(k)s have caused the belief that ETFs are causing a price bubble. [0:25:50.0] How we have figured out investing but not financial advising. [0:14:40.8] Different ETFs benefit the market by suiting different investor classes. [0:17:49.6] The relationship between ETF indexes and material yields. [0:19:38.6] ETF value systems and the benefit of sticking to one index provider. [0:22:49.4] A slowing in ETF spreads and the coming of non-transparent active funds. [0:26:02.2] The evolution towards, and benefits of, direct indexing. [0:29:21.3] ETF as the most robust security short of stashing physical gold. [0:34:16.6] The value of financial advisors to investors who are more trustworthy nowadays. [0:38:10.2] Hourly financial advice rates work for those who don’t need advice long term. [0:41:07.2] The benefits of the AUM model as long as it is made transparent. [0:43:45.9] Charging for advice fees separately stops clients from asking for advice. [0:45:09.3]
7 Nov 2019
Raw Truth of Investment: Why the Best Investment Advisors Cannot Beat a Dart (EP.46)
Welcome back to the podcast everybody! Today we are running through our weekly topics as usual, giving you the best, worst and everything in between on investing in Canada. We are talking a bit about the really interesting and important SOHN Investment Conference and what goes on there. We also go into why random stock picks, chosen by a thrown dart, beat Wall Street's elite and what we can learn from the SPIVA Report. From there we go pretty deep into the topic of low volatility and how its different permutations and readings can impact our investments. In our planning section of the program we talk about returns and how Canadian investing fits into the global landscape. Lastly, we finish off with our segment on the worst advice of the week, where we evaluate a claim that new kinds of ETFs with a new kind of value are what is needed in the market currently. For all this and more, be sure to join us today! Key Points From This Episode: A little about the SOHN Investment Conference. [0:01:51.3] Why the 'best' investment advisors cannot beat a dart. [0:04:42.4] Active funds versus index funds and the SPIVA report. [0:06:59.7] Low volatility stocks, a definition and understanding them better. [0:13:18.2] The most important metrics in the low volatility equation. [0:19:01.1] Average returns on mutual funds over time. [0:24:42.6] The worst advice of the week! [0:31:56.3] And much more!
16 May 2019
A Masterclass in Business: Money Philosophy with Barry Ritholtz (EP.57)
On today's episode we are so happy to be joined by none other than Barry Ritholtz! As the founder and CIO of Ritholtz Wealth Management, host of the Masters in Business Podcast and regular financial blogger for more than 15 years, Barry is someone we have been dying to speak to on the show and who we have taken loads of inspiration from over the years. We talk to Barry about his own podcast which has been going strong for years now and is just about to reach its 250th episode! He also explains the beginnings of his firm and how his role has evolved in it since it started. From there, the conversation turns to the different parts of an investing philosophy we and Barry pretty much share and we ruminate on the state of the financial industry in US and Canada currently. We all feel that it is surprising that brokerage firms still find business in this day and age, when it has been shown so many times, for an extended period of time to be a far inferior business model for clients. Barry offers some pretty sensible advice on how to pursue financial growth in the long term and shares how RWM approaches client acquisition. For all of this and so much more, be sure not to miss this great episode! Key Points From This Episode: Why Barry feels he has the easiest gig in podcasting. [0:03:17.6] The inspiration behind starting the firm and Barry's day to day work. [0:05:53.9] The RIA model versus the brokerage model in investment firms. [0:12:45.4] How Barry and the firm have chosen to run their business model. [0:16:03] Specific portfolios at Ritholtz and the philosophy behind them . [0:21:18.8] It's no good breaking a record if you crash straight after! [0:28:13.1] How Barry and the firm find customers and the client conversations they have. [0:34:04.2] Behavioral counseling as RWMC's biggest value proposition. [0:42:34.8] Barry's opinions on robo-advisors and the factors to consider. [0:47:06.2] Why are there still commission based advisors in 2019? [0:50:38.9] Things Barry has changed his mind about since starting the firm in 2013. [0:55:09.9] Small cap tilts, lower rates and the longer term vision that is necessary. [1:01:11.1] How Barry defines success in his life. [1:07:01.5] And much more!
1 Aug 2019
LIVING THROUGH THE FINANCIAL CRISIS (EP.12)
In Episode 12 of the Rational Reminder podcast we were joined by Doug McKenzie, an executive at a large US financial institution, and a PWL client. We discussed the following: Attacking a retirement goal Managing expenses before retirement Toronto real estate in a retirement plan Living (and working through) the financial crisis The Investor’s Group Dividend Fund Income investing Robo advisors Using prepaid credit cards for budgeting CCP vs. CPM vs. DFA Running regressions Data sources Come From Away The value of knowledge and advice For more information or to contact Cameron and Ben, visit pwlcapital.com
28 Sep 2018
The S&P Dow Jones & S&P 500: A Brief History (EP.54)
Today on the Rational Reminder Podcast we have joining us Dr. David Blitzer who is the Managing Director and Chairman of the S&P Dow Jones index committee. He has been there from the time when indexes were barely even being traded and the first time S&P Futures began trading, and since then, indexing has turned into the massive phenomenon we all know today. Indeed, S&P indexes were (and still is) at the center of this explosion. Today Dr. Blitzer talks to us about the early days of indexing and shares some of his ideas about why indexing became so popular. We also discuss the possible reasons why some people still choose actively managed funds and the effect that the abundance of research has had on their dwindling appeal. Ever wondered where the rapid growth in indexing will end up? What happens after indexing? Can indexing become too big? Be sure to join us for this masterclass on indexing! Key Points From This Episode: When Dr. Blitzer joined S&P and how index investing has changed over time. [0:03:33.0] The relationship between an S&P and a product manufactured like Vanguard. [0:06:03.0] Considering the reasons why indexing became so popular and the role of ETFs. [0:10:11.0] How research has impacted people’s perception about active management. [0:12:54.0] Some theories on why it is so difficult to beat the S&P 500. [0:18:13.0] How the change to indexing has affected smaller markets such as Canada. [0:25:39.0] Dr. Blitzer’s thoughts on factor weighting. [0:30:28.0] The line where we cross over from passive to active investing. [0:32:18.0] Can indexing become too big, and what’s next? [0:41:00.0] What Dr. Blitzer ascribes his success to. [0:45:26.0] And much more!
11 Jul 2019
MARKET VOLATILITY (EP.16)
In Episode 16 of the Rational Reminder Podcast we talked about the following: How bad was last week’s market volatility? Should you make changes to your portfolio in this market? Are people better at predicting when markets are volatile? How the market prices securities The economy vs. the stock market When do bear markets typically occur? Will passive investing exacerbate the next correction? Do index funds affect price discovery? The power of capitalism Index reconstitution Risk over the long-term Quant investing does not always pass robustness tests 50% of business is marketing Devil’s in the HML details Dimensional has thought of everything The charts that we talked about: For more information or to contact Cameron and Ben, visit pwlcapital.com
17 Oct 2018
Evidence Based Investing: Changing the Minds of Advisors and Investors with Robin Powell (EP.27)
In this episode of the Rational Reminder Podcast we welcome Robin Powell. Robin is a journalist and content creator who has dedicated the more recent part of his career to helping spread the word on research backed investing and turning the tide on the history of investment advice. For Robin, this all came about from an assignment he was working on and the feeling of shock he experienced when he discovered the wealth of information that is available to investors but how it is shielded by the majority of investment advisors. Robin explains these experiences and why we still see this in today’s marketplace. He chats to us about the films he has produced on the subject and the great characters and thought leaders with whom he has met. Robin is kind enough to open up about his thoughts on the future of investing, regulation and his hopes for the spread of this information. For all this and more, be sure to join us! Key Points From This Episode: Some of Robin’s background and previous work experience. [0:01:40.6] Why Robin started spreading the evidence based investment message . [0:02:38.9] The experience of speaking with industry leaders to make a documentary film. [0:04:07.7] The impact of this and the subsequent films Robin has produced. [0:05:44.0] Robin’s perspective on the Canadian financial industry. [0:06:57.8] The impact of the change of rules for financial advisors in the UK. [0:09:21.6] The effect of RDR and claims about reduced access to advice. [0:12:24.2] Difficulties in sharing information and changing people’s minds. [0:15:06.0] The role of the press in this dynamic and whether it can change [0:16:52.2] Robin’s favorite interviews and encounters over the years. [0:18:07.4] Looking to the future of the financial industry. [0:19:53.5] Considering the role of the human financial advisor with the rise of robo-advisors. [0:21:40.1] Robin’s own measure of success in his work [0:22:59.9] Regulation in the pursuit of changing the approach of advisors. [0:24:28.9] And much more! For more information or to contact Cameron and Ben, visit pwlcapital.com
2 Jan 2019
UNAFFORDABLE HOUSING (EP.13)
In Episode 13 of the Rational Reminder podcast we discussed the following: Getting into the DFA advanced conference Cancelling whole life insurance When permanent insurance makes sense Unaffordable housing in Canada Housing bubbles? Bridging the gap with a HELOC Undervalued financial advice Money does not buy happiness Defining a lifestyle Walking to work Active funds are still underperforming Missing out on the best stocks The Stories we talked about: HOUSING TRENDS AND AFFORDABILITY UBS Global Real Estate Bubble Index It’s officially normal to have a big, fat balance on your line of credit Stock Pickers Struggle to Beat Index Funds Once Again For more information or to contact Cameron and Ben, visit pwlcapital.com
2 Oct 2018
Evidence: What To Follow And What Not To Follow (EP.24)
Welcome back to The Rational Reminder Podcast. Today, Benjamin is getting the factor fill off his chest. We are diving into a range of topics and we are talking about other factors or how far you can push the evidence. This is the first time in a while that we’ve really dug into factors. We cover other interesting topics like increasing CPP benefits, we talk about our regulatory bodies and the debate going on there, as well as the big news around Vanguard. It’s a fun debate and a good conversation. So, keep listening to hear more! Key Points From This Episode: How CPP is expanding in 2019. [0:01:48.0] Advocis putting the business interest of financial advisers before clients. [0:05:0] The rumor circulating about Vanguard. [0:10:22.0] A none story - How asset owners are falling out of love with index funds. [0:13:00] Why the rich aren’t happy, why more money does not make people happier. [0:15:44.0] Factors of a way to beat the market and why factors work. [0:17:38.0] Factor regression on portfolios. [0:22:46.0] Long versus short stock picking. [0:27:43.0] And much more! For more information or to contact Cameron and Ben, visit pwlcapital.com
13 Dec 2018
Money & Behaviour: Understanding Investing from a Psychological Perspective with Daniel Crosby (EP.75)
On today’s episode, we have Dr. Daniel Crosby joining us for an insightful discussion about the psychology behind investing behaviour. Dr. Crosby is a behavioural finance expert and asset manager who applies his study of market psychology to help people better understand the financial decisions they make and to shed some new light on our ability to be rational. We talk about the inevitability of our emotions and how they impact our actions, but also how they might be leveraged for positive outcomes. As far as behavioural biases are concerned, overconfidence is by far the biggest threat to our investment success, but on the flip side, Dr. Cosby shares why, outside of investing, this trait can serve us really well. We enquire about his thoughts on how wealth changes people’s behaviour, on whether the FIRE Movement has some credibility to it, and he explains why having a strong theoretical underpinning is necessary when making decisions based on empirical data. Join us for some more science-based investment advice! Key Points From This Episode: The rationality of people and the possibility of leveraging emotion in finance. [0:02:26.0] Research that shows why you should work with a financial professional. [0:06:46.0] Behavioural biases and overconfidence as the most dangerous one. [0:11:05.0] Avoiding overconfidence by understanding that investment rules are different. [0:13:47.0] The extent to which people’s behaviour is affected by those around them. [0:17:58.0] How significant changes in net worth changes a person’s investment traits. [0:25:36.0] Thoughts on the FIRE Movement and how investors should look at risk. [0:28:06.0] Behavioural and risk-based factors and the necessity of a theoretical underpinning. [0:37:06.0] And much more!
5 Dec 2019
THE RACE TO 0% (EP.4)
After a successful launch, the podcast will live on! Thanks for the support and feedback. In Episode 4 of the Rational Reminder podcast we discussed the following: The longest bull market in history? Are we repeating the tech bubble? Why it still makes sense to hold bonds Rebalancing isn’t always easy The Lost Decade, sort of Is tax-loss selling worth it? Horizons’ marketing mistake One decision funds Index fund fees are finally at 0% Sec lending is the future of index fund revenue Charley Ellis on the history of active management There are less willing losers today than there were in the past The paradox of skill Active managers underperform consistently Daniel Kahneman does not believe active management works If you think you have intuition about stocks, you’re wrong Corporate DB pension plans are not risk-free The stories we talked about: This bull market could become the longest in history this month Tax-Loss Harvesting: Should Investors Believe the Hype? Horizons ETFs Launching 0% Management Fee ETF Portfolio Solutions Free Fidelity Funds Stoke Price War in Bid to Catch Index Giants ETFs still gathering assets, but inflows slow as investors favor lower-cost funds CHARLEY ELLIS – INDEXING AND ITS ALTERNATIVES (EP.62) Then, and now Kahneman's Insights: Beyond Thinking Fast and Slow 'It's going to be hard': Sears pension payments cut by 30% this week The charts we talked about: Source: PWL Capital Source: S&P Dow Jones Indices For more information or to contact Cameron and Ben, visit pwlcapital.com
8 Aug 2018