Weekend Reading – Weak Currencies: How To Avoid Losses

Weekend Reading is a collection of Investment Research and Lifestyle topics from all corners of the Web.We source the highest quality insights from Wall Street and Main Street that you may apply to your investment process. Unlike the rest of Bankeronwheels.com, this series is provided without additional guidance. As usual, everything is to be used at your own risk.  Below is the type of content we shortlist.

Invest Wisely section is dedicated to research on how to invest for the Long Run using Passive Investment Strategies. Read Topics related to (i) Portfolio Construction and Asset Allocation (ii) Acting wisely by avoiding behavioural traps and also (iii) publications that help understand how financial markets work.

Active Investing section relates to improving your knowledge about active investing.  If you decide to sin, then sin only a little. Given ample evidence, combined active bets should be ideally a relatively small fraction of your portfolio. This section also includes Sustainable Investing. You can invest in a Socially Responsible way, but there are many ESG traps. Learn how to invest sustainably, and what it means for expected returns, with our definitive guide to sustainable investing

Personal Finance section is dedicated to UK and European Products. It can also touch on other European jurisdictions outside the Euro-zone.

 

Pleasant as it may be to bask in the warmth of recovery… the time to repair the roof is when the sun is shining

INVEST WISELY

CONSTRUCT YOUR PORTFOLIO

Should You Hedge Your Bonds? (Bankeronwheels.com)

Navigating the world of bonds can be a treacherous journey, especially when it comes to currency hedging. Can your strategy change based on your home currency? Does it matter if you invest in Euros, or Swiss Francs? Is the British Pound any different? What about other currencies? Is the decision to hedge impacted by your life situation and goals? What about other currencies? Is the decision to hedge impacted by your life situation and goals?

[Read our article]

UNDERSTAND FINANCIAL MARKETS

How Dividends contributed to total returns depending on market environment (Wisdom Tree)

Dividends contributed nearly 30% to the 10.4% annual total returns of the S&P 500 over the long run. In the 1970s, a decade characterized by high inflation and weak economic growth, dividends made up 70% of total returns. The 1990s—the decade of the dot-com bubble—had the lowest contribution from dividends of just 15%.

Read more on Wisdom Tree

HOW TO INVEST

Active Investing

FACTOR investing

Returns for the S&P 500 and Dimensional US Small Cap Value since 1927 (Dimensional Funds)

Anyone who’s ever bought a used car knows the importance of avoiding a cherry-picked depiction of history. Low mileage and regular oil changes don’t matter much if the seller fails to mention the car was once submerged in floodwater. Many investors have been drawn to the shiny-object stocks of the S&P 500 index on account of their recent performance—since 2010, the large cap S&P has outperformed US small cap value stocks by an annualized 1.7 percentage points. the decade of the dot-com bubble—had the lowest contribution from dividends of just 15%.

Read more on Dimensional

discretionary investing

Valuations, economy may favour value stocks (Vanguard)

As measured by the Standard & Poor’s 500 Index, U.S. stocks have risen more than 20% since they hit a trough in mid-October 2022—a dismal year that brought the S&P 500’s worst calendar-year decline since 2008 but just its second loss in 14 years. They’ve roughly doubled in value since the pandemic-induced low of March 2020. The extent and pace of the gains are enough to make the wary equity investor wonder: Where is there opportunity in the U.S. stock market?

Read more on Vanguard

7 key valuation lessons from Aswath Damodaran (Daniel)

Aswath Damodaran is the ‘Dean of Valuation.’

For almost four decades, he has been teaching valuation at NYU. He also teaches millions of people online.

Here are 7 Key Valuation Lessons from him

Read more on Twitter

ALTERNATIVE ASSET CLASSES

Is the UK housing market going to crash? (Pension Craft - 21 Min )

If we combine the cost of living crisis, soaring interest rates, and sky-high prices, it seems as if the UK housing market is set up for a big crash. This video looks at the reasons for and against an impending crash. And, also gives you some forecasts for UK house prices.

WALL STREET

A 40 Minute Charlie Munger Masterclass (42 Mins)

As Berkshire’s Vice Chairman, the 95-year-old Munger is Warren Buffett’s right-hand man. He’s also an investing legend in his own right. Munger ran a firm in the 1960s and ’70s that scored returns of over 24% per year. He’s here to talk about how to make investment decisions and life choices that help secure prosperity and longevity.

SUSTAINABLE investing

crypto

Looking at Bitcoin within a 60/40 portfolio. (Morningstar)

Bitcoin Index posted a 76.4% return through July 2023 in defiance of the gloomy narratives that haunt the rest of the cryptocurrency ecosystem. The trusty balanced portfolio has also beaten expectations as of late. So far in 2023, risk has paid handsomely. That fact may leave many investors wondering whether to add some extra firepower to their portfolio in the form of an allocation to bitcoin.

Read more on Morningstar

BAD BETS

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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash. 

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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash. 

PERSONAL FINANCE

Wealth Management

Early Retirement

Bogleheads on Investing about Early Retirement - Cody Garret (Bogleheads on Investing - 1 hr 3 min)

Listen also on:

Cody Garrett is an advice-only financial planner passionate about helping families refine their path to financial independence (FI) as DIY investors. Cody specializes in comprehensive financial plan development, topic research, and personalized financial education.

On this podcast, he joins John Luskin to talk all things early retirement!

FINANCIAL PRODUCTS

COST OF LIVING

OUR Community

Question of the week

[democracy id="2"]

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DESIGN YOUR LIFESTYLE

Personal Development

Taking the path less travelled - with Justin Gary (The Tim Ferris Show - 2 hr 21 min)

Justin Gary is an award-winning designer, author, speaker, and entrepreneur. He is CEO of Stone Blade Entertainment and creator of the innovative and award-winning Ascension deck-building game series. Explore the path less travelled, the phenomenon of magic, how analytical people can become creative people & much more!

Health & Wellness

CAREERS

Advertisement

As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash. 

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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash. 

TECH AND SCIENCE

Travel

Cycling in Japan - 2 secret maps, best islands & seasons (Bankeronwheels.com)

Between 2019 and 2023, I spent close to a year in Japan. I cycled over 4,000 km from Hokkaido to Okinawa. Here are some tips on how you can make the best of your trip to the country of the rising sun. When to go, where to go (to avoid the touristy parts), navigation, avoiding natural disasters, and travelling cheaply.

Here are the best tips. 

[Read our article]

From Bankeronwheels.com
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Liked the quality of our guides? There is more. Every week we release new guides, tools and compile the best insights from all corners of the web related to investing, early retirement & lifestyle along with exclusive articles, and way more.  Probably the best newsletter for Individual Investors in Europe and the UK. Try it. Feel free to unsubscribe at any time.

🎁 In the first email, you can download a FREE comprehensive 2-page checklist to construct & monitor your portfolio and clean up your personal finances.

miscellaneous

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