Weekend Reading – Vanguard: Invest now or temporarily hold your cash?
Many investors hold too much cash as a result of indefinitely deferring the decision about how and when to invest. Whether this cash-hoarding is a result of indecision, risk aversion, or simply disengagement, we know that over long time horizons, investors will achieve superior outcomes by being fully invested according to their prescribed asset allocation"
HOW IT WORKS
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.
- Recommeded Reading
- Youtube (Required watch time)
- Podcast (Listening Time)
- Academic Research - May require intermediate/advanced knowledge
- Noteworthy Twitter Thread
INVEST WISELY
This 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
CONSTRUCT YOUR PORTFOLIO
Hand-picked Selection of The Best Equity ETFs
For someone who is unfamiliar with ETF benchmarks and criteria, selecting an ETF has become a headache. Comparison websites generally list thousands of ETFs. Here is where we step in. Investing should be simple. While we may have a marginal preference for some ETFs, we list suitable alternatives to account for investors’ tax situations, and preferences. Let’s dive into the Best Equity ETFs.
The Wrong Arguments Against International Diversification (11 Minutes - Ben Felix)
International stocks have trailed US stocks for more than 100 years. Performance aside, the US market is well diversified across industries, makes up more than 50% of the global stock market, and lots of US companies have international revenue exposure. Additionally, international diversification has gotten less effective over time as correlations across markets have increased.
HOW TO INVEST
- Statistically Speaking, You Are The Patsy (Neckar)
- What Does the Demise of SVB Tell Us About Our Behaviour During Market Shocks? (Behavioural Investment)
- Staying Invested - It's easier said than done (Spilled Coffee)
- Why You Always Sell Your Stocks at the Bottom (and How to Stop) (Darius Foroux)
- investing is not only about the rate of return but also about what you are investing for and why. (Rational Reminder - 1 hr 7 min)
With inflation returning after being dormant for decades, many investors have had a renewed interest in adding inflation fighting assets to their portfolios. But figuring out how to do that can be challenging. In this episode, VanEck’s Head of Quantitative Solutions Dave Schassler gives insights about how to attack the problem.
UNDERSTAND FINANCIAL MARKETS
- Uncertain but navigable conditions (Vanguard)
- How to explain to your kid what a bank run is? (Finance Nerd)
- Does The Wisdom of Crowds Mean Equity Markets Are Efficient? (Behavioural Investment)
- What the UK budget means for the economy & investors? (Pension Craft)
- What are CoCos and why are Credit Suisse's now worth zero? (Morningstar)
- How many banks are in danger? (The Grumpy Economist)
Whenever a major financial institution collapses and needs a bailout, it’s easy to say, “Where were the regulators?” But that’s only a useful question if you can pinpoint the specific regulatory choices that led to any particular situation. So what caused Silicon Valley Bank to implode?
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Beat Most Investors with our ETF Master Guides
Here are the first three ETF Master Guides:
- Get Rich, Slowly but Surely – We designed Equity ETF selection frameworks and then picked the best funds in each category, so you don’t have to.
- Become a Passive Investing Ninja – Have no mercy for Financial Institutions. Cut TERs, Taxes, FX Fees and Invisible Costs.
- Don’t get fooled by Wall Street – Hardly anyone understands Sustainable Investing. ESG Ratings are not designed to protect the planet. Adjusted for risk, ESG ETFs will also inevitably underperform. But there are ways to invest Sustainably.
ACTIVE INVESTING
This 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.
FACTOR & Thematic investing
- In conversation with Dr Maria Vassalou on the small cap effect (Bloomberg)
- Trend following: The proof is in the track record (RCM Alternatives - 1 hr)
- Bonfire of the CTAs (FT.com - click on the first link)
- What to Look for in Actively-Managed Bond Funds Right Now (Morningstar)
- Are defined outcome ETFs worth it? (Italian Leather Sofa)
- Merger Arbitrage - Do risky deals pay? (Verdad)
Bloomberg Radio host Barry Ritholtz speaks with Cliff Asness, who cofounded AQR Capital Management — which has $100 billion in assets under management — and serves as its chief investment officer.
STOCKS
SUSTAINABLE investing
ALTERNATIVE ASSET CLASSES
FROM WALL STREET
crypto & blockchain
REMINDERS TO PUNT RESPONSIBLY
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Who Are Coaching Sessions For?
- Beginners often ask us: How do I reach my goals? When should I invest? How do I come up with the right asset allocation? What About Short-Term Investing?
- Advanced investors come to us to get their portfolios challenged: What could derail my strategy? Bond Ladder or Bond ETFs? What are risks related to Factor Premia? How much can I withdraw from my portfolio annually?
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We Help You Avoid Costly Investing Mistakes.
Who Are Coaching Sessions For?
- Beginners often ask us: How do I reach my goals? When should I invest? How do I come up with the right asset allocation? What About Short-Term Investing?
- Advanced investors come to us to get their portfolios challenged: What could derail my strategy? Bond Ladder or Bond ETFs? What are risks related to Factor Premia? How much can I withdraw from my portfolio annually?
Don’t take our word for it. Check the reviews to see what other investors think.
DIVE DEEPER - BOOKS & MOVIES
In the Book review section we rate some of the most relevant resources related to Financial Independence, Personal Finance and Investing. Browse All Book and Video Reviews.
15 Years On, We Fall For The Same Tricks – Madoff: The Monster of Wall Street On Netflix (Review)
The 2023 Netflix docuseries Madoff: The Monster of Wall Street dives into the largest Ponzi scheme in history, worth $64.8 billion.
Although the Madoff madness stopped in late 2008, today’s investors still fall for the very same tricks.
What exactly can we learn from this series?
Let’s have a closer look.
PERSONAL FINANCE
This section is dedicated to UK and European Products. It can also touch on other European jurisdictions outside the Euro-zone.
FINANCIAL PRODUCTS
COST OF LIVING
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DESIGN YOUR LIFESTYLE
This section is dedicated to the ‘Why’ of Investing, trends or career choices.
LIFESTYLE
- 6 simple stoic lessons to feel more peace (The daily stoic - 8 min)
- FI Frugal Hobbies (ChooseFi - 1 hr 24 min)
- How to make better decisions (Good Life Project - 54 min)
- Why “Everyone Has the Same 24 Hours” Is Not a Good Way to Think About Time Management (GQ)
- There’s a reason some of us find it easier to change than others (Psyche)
- New Neuroscience Reveals 6 Secrets That Will Increase Your Attention Span (Barking Up The Wrong Tree)
There are only a handful of financial rules, ideas, and observations that really move the needle — and explain the majority of what you need to know to do better with your money. Here are Morgan Housel’s top 30 rules of the money game.
EARLY RETIREMENT
CAREERS
TECH & ECONOMY
Travel
miscellaneous
- What YouTube hustle gurus are really selling you (VOX)
- Currency & The Collapse of The Roman Empire (Visual Capitalist)
- How did a reclusive electrician living in a modest bungalow amass the largest unclaimed estate in American history? (Chicago)
- A Brief History of Time is ‘wrong’, Stephen Hawking told collaborator (Guardian)
- Tokyo citizens hand in record ¥3.99bn of lost cash (Guardian)
Mapped: The World's Minority Indigenous Peoples (Source: visualcapitalist.com)
“Research by the UN’s International Labour Organization found that, while minority Indigenous peoples make up only 6% of the world’s total population, they account for nearly 20% of the world’s extreme poor. In addition, Indigenous peoples also have much lower average life expectancies than non-Indigenous people, according to a report by the United Nations. Some countries and governments around the world are starting to implement laws and policies to support and recognize Indigenous communities, but there’s still work to be done”. Read more on VisualCapitalist.com
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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.
