The Sunday Ride #3 – Dragon Portfolio

The Sunday Ride #3 - MAY'21

Delivery of Soba Noodles in Japan (date unknown). Demae was primarily reserved for wealthy Daimyo, who would send servants to let the shop keepers know that they wanted delivery. Over the years demae evolved into a more mainstream practice. And one of its most popular forms became the delivery of soba noodles, an affordable dish that carried around without losing flavor or appearance.

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

Year-to-date Market Performance

Markets were relatively quiet this month.

Overall Equities moved sideways in May, except European currencies and Gold getting stronger against the Dollar. 

Rates rise paused, and it remains to be seen whether the FED is right about its stance, and inflation spike is indeed temporary and doesn’t necessitate action. 

FED is unwinding some of the purchases made last year. Including the US Corporate Bond ETFs I covered quite in detail.

β - THE LONG GAME

This section is dedicated to what really matters (aka the 90% of your Portfolio) – achieving Financial Independence, Asset Allocation and Long Term Investing Research.

 

Long term investing is easy in theory, practice is another thing. 

Morgan Housel has a look at why it’s difficult.

Schroders on how to build a portfolio in a world of zero rates.

Stock market bubbles fascinate researchers because bubbles have major implications for market efficiency, but their existence is disputed. 

This CFA Institute book evaluates academic research and other analysis of bubbles and their significance for investors (not a quick weekend read!)

If you are curious about Inflation and want to tweak your portfolio A. Damodaran dives into the topic in a very comprehensive manner.

Separately, if you are wondering about potential ways to reduce taxes with ETFs, I have written about withholding tax in a BoW article. Not the sexiest topic, but can save you a lot.

Finally, you can now can test your knowledge of key long term investing concepts on BoW.

If there’s something you’re unfamiliar with, I have provided you with helpful resources to learn more and boost your investment knowledge.

Alpha Investing

α - PUNT RESPONSIBLY

If you decide to sin, then sin only a little. Active investing should be, at best, a tiny fraction of your portfolio (I tend not to exceed 10% of my portfolio). This section is dedicated to improving your knowledge about capital markets. 

Chris Cole from Artemis presented his research on long term Dragon portfolio. Here is the transcript from the Odd lots podcast.

Real Returns dives into arguments against ESG Investing.

There are ways of cutting your taxes when investing in the S&P 500. Here is a BoW analysis on why you may consider Synthetic ETFs.

Morningstar takes a look at differences in US Equity Benchmarks

FTSE Russell writes about Small Cap Value bias persisting.

 

Crypto

Meanwhile most portfolio managers think that bitcoin is the most crowded trade and is in ‘a bubble’, according to Bank of America Investors’ Survey. As usual, they frequently get it wrong.

4 Lessons from the Crypto Crash from the always great A Wealth of Common Sense.

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.

Ever wondered why Europe is so late in the ETF game?

The retrocession model doesn’t exist in the U.S. and was ended in the U.K. in 2012. 

But it’s the major factor in Europe.

“Retrocession fees are the classic case of greedy middle men taking their cut to the detriment of the end investor. It’s time someone blew up the boat”, writes Blackwaters.

Look at their latest survey and how the revolution won’t sweep Europe anytime soon.

Global X presents trends in thematic ETFs in Europe.

Cycling

LIFESTYLE

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

Financial Independence & Early Retirement

Divorce, Illness and other issues can prevent us from achieving Financial Independence.

Here are 5 reasons that often come up  by Incognito Money Scribe.

But a more in-depth analysis about couple perspectives is given by the great Indeedably. Rare are those honest testimonials of challenges that you may not foresee when one starts investing.

Cycling

An amusing video about cycling masochism. Enjoy!

Simplicity is the ultimate sophistication.

- Leonardo da Vinci

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DISCLAIMER

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 77 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 bespoke Investment vehicles 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 favorite) that he used to Cycle the World.
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Bryan
Bryan
5 months ago

Great video?

Joao Jesus
Joao Jesus
5 months ago

Thanks for this article. It has very interesting links.

Pedro Pires
Pedro Pires
5 months ago

Another interesting “Sunday ride”. Curious about investing in TIPs in current global environment Raph… any thoughts? ( at least US and European investors).

Amanda
Amanda
5 months ago

Great stuff as usual!

Maciej
Maciej
5 months ago

Interesting stuff on how passive & active/factor based stragtegies are dealing with inflation: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3813202. Momentum prevails? 😉

Not sure if Schroders analysis should be in beta section as recommendation is to move to more active strategies? 😉

Ps. This idea with Sunday ride series is really good 🙂 Cheers!