Stock Picking Squid Game (Sunday Ride #9)

Stock Picking Squid Game (The Sunday Ride #9)

The Sunday Ride brings a collection of Investment Research and Financial Independence topics for Long Term Investors with the aim of providing you the very best reads.

To be enjoyed with your Sunday post-ride coffee.

While rebalancing your portfolio, learn how the markets work and get the highest quality insights from Wall Street and Main Street.

Unlike the rest of Bankeronwheels.com, this series is provided without much additional guidance. 

As usual, everything is to be used at your own risk. 

Market Dashboard

DASHBOARD - STATE OF PLAY

A quick glance at where we stand Year-to-Date when you rebalance. Compiled specifically taking a Long Term Investor view. Updated throughout the year. Long term historical risk and returns are here

CURRENCY-ADJUSTED 2021 Performance

Realised Inflation has never been so high with Interest Rates so low.

Although I find Michael Batnick’s analysis somewhat misleading given he compares realised (over past year) inflation to forward interest rates (kind of comparing apples to oranges), but it’s worth highlighting nevertheless what exceptional year it has been and how low rates are.

β - THE LONG GAME

This section is dedicated to research on what really matters in the Long Run (aka the 90% of your Portfolio). Read about Asset Allocation and explore Index Investing Research.

 

Come along for a Hike with Francesca. Or How to Start Investing in 10 Steps – Banker on Wheels

When you see a Grizzly it’s too late to run away – how to benefit from a Bear MarketBanker on Wheels

How many stocks are sufficient for adequate diversification?Amadeus Capital

Up to a quarter of US equity ETF revenues derived from China – Bank of America analysis shows how difficult it is to avoid fallout from Beijing’s crackdown – FT

The case for splitting China out of the EM index – FT

Passive investment blamed for inflating stock market bubble Research suggests index funds have insulated US equities from threat of a sustained bear market – FT

Market Cap Rules everything around me – A Wealth of Common Sense

Fund Managers Flop Again – It’s often claimed, that it’s easier to generate alpha in markets that are “less researched”. That’s where they’ve fared worst – Evidence Investor

Lost decades for the 60/40 Portfolio (Goldman Sachs)

We got accustomed to the 60/40 Portfolio being labelled as dead for some time now.

This month, Goldman draws parallels with prior lost decades and expects that the coming one will be a lost one for the 60% Equity 40% Bond Portfolio similarly to some periods in yellow. Unless (according to GS) you increase the Equity allocation (and your risk profile).

10-year US real rates now -4.6%, a level in the past 200 years that has been associated with panics, inflations, wars & depression, and a level today increasingly responsible for froth in crypto, commodities, and US stocks (Bank Of America)

Alpha Investing

α - PUNT RESPONSIBLY

This section is dedicated research related to improving your knowledge about capital markets.  If you decide to sin, then sin only a little. Combined active bets should be, at best, a tiny fraction of your portfolio. Remember that most crypto assets do not generate yield, are not investments but rather portfolio diversifiers and will remain highly volatile.

SMART BETA AND Factor Investing

Smart Beta Is Making This Strategist Sick Institutional Investor

Equity factors follow their own sentiment-driven cycle that cannot be explained by traditional business cycle indicators. This implies that factor premiums are a behavioral phenomenon, rather than a reward for macroeconomic risks – Robeco

Myth-Busting with Momentum: How to Pursue the Premium – Dimensional Fund Advisors

EQUITIES

GREAT VIDEO ABOUT ACTIVE INVESTING. ARE YOU PLAYING THE STOCK PICKING SQUID GAME? Q3'21 EARNINGS IMPACT ON STOCK PRICES

66% of Nasdaq stocks are in Bear Market. The average Nasdaq stock is down 17%.

Crypto

Bitcoin whitepaper – Happy birthday! On October 31, 2008, a so-called Satoshi Nakamoto published the Bitcoin white paper. 13-years later, bitcoin has a market cap of almost $1.2 Trillion.

10 Lessons from 5 Years of Investing in CryptoMr Stingy

Matt Damon Crypto Commercial (Not calling the top) – Crypto.com

Another great Video about Active Investing. Crypto Apes - Deposit Now, Regret Later

A few weeks in Crypto feels like a lifetime. Matt Huang explains how Crypto Industry is changing.

ACTIVE INVESTING - ORBITUARY

When you play with fire, you can get burned. This section is a stark reminder of what can happen when engaging in active investing, even as a professional.

Doomsayer Jeremy Grantham on the time when he made money on stocks popping 5-10x. Then lost it all. Akin to current Crypto Market.

European Stuff

EUROPEAN STUFF

This section is dedicated to UK and European Index Investing. It can also touch on other jurisdictions outside the Euro-zone.

BOOK REVIEWS

We have launched the Book Review section, where Kat & I rate some of the most relevant reads related to Financial Independence, Personal Finance and Investing. Browse All Book Reviews.

The holiday season is just around the corner, and with it comes the challenge of finding a great gift for your loved ones. 

Why not opt for a personal finance book this year?

Read our Christmas Book Selection

Books reviewed this month:

  • The Psychology of Money – by Morgan Housel is a fascinating insight into the “why” behind many of our most important financial decisions. Overall Rating 3.5/5
  • The Little Book Of Common Sense Investing – Published in 2007, is an account of why the author is in favor of using index funds when investing. Overall Rating 3.5/5
  • Money – A User’s Guide – was published in 2018 and aims to educate young people between the ages of 18 and 40 about how to best handle their money. Overall Rating 2.5/5
Cycling

LIFESTYLE

This section is dedicated to the FIRE Lifestyle Movement and Cycling Topics (bikepacking, touring and useful reviews)

Financial Independence & Early RetiremenT

Renting vs. Buying a Home (Ben Felix)

Cycling

Most people don't know how bikes work

You can never cross the ocean until you have the courage to lose sight of the shore

Christopher Columbus

Good Luck & keep’em* rolling!

(* Wheels & Dividends)

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All information found here, including any ideas, opinions, views, predictions expressed or implied herein, are for informational, entertainment or educational purposes only and do not constitute financial advice. Consider the appropriateness of the information having regard to your objectives, financial situation and needs, and seek professional advice where appropriate. Read our full terms and conditions.

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About Raph Antoine 83 Articles
Raph Antoine is a Portfolio Manager and Institutional Advisor that witnessed first-hand the 2008 Global Financial Crisis and the 2011 European Debt Crisis working for some of the most prestigious names in the financial industry. Raph has experience across multiple asset classes including Fixed Income and Equity products as well as Special Situations and Restructurings in multiple jurisdictions. Raph holds an MSc in Financial Engineering and is a CFA (Chartered Financial Analyst) Charterholder. He usually rides one of his two bikes. Rarely, a Canyon Ultimate CF SLX 8.0 (that is currently in family's attic) and most of the time a Gravel Pinnacle Arkose (his favourite) that he used to Cycle the World.
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Richard Smith
Richard Smith
1 month ago

Another great read. Thanks!

James
James
1 month ago

Good stuff, as usual