Weekend Reading – 100% Equities For Non-US Investors? Pay Attention To Details.
March 1, 2024
Weekend Reading – 100% Equities For Non-US Investors? Pay Attention To Details.
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:
Bonds can beat stocks over short stretches; Bonds provide protection during market drops; Bond yields are still greater than current dividend yields.
Featured
Should You Invest 100% In Equities? (Banker on Wheels)
These days, academic insights like the recent paper ‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ by Scott Cederburg et al., which challenges traditional asset allocation are not just noted – they’re often implemented by individual investors. Today, let’s have a look why this paper’s recommendation can significantly reduce diversification for European investors, and why the way the study is designed should raise major concerns.
Portfolio Construction
Asset Allocation
UNDERSTAND FINANCIAL MARKETS
The Trillion Dollar Equation (Veritasium)
The most famous equation in finance, the Black-Scholes/Merton equation, came from physics. It launched an industry worth trillions of dollars and led to the world’s best investments. Featured in this video – The Man Who Solved the Market: How Jim Simons launched the quant revolution by Gregory Zuckerman.
- Barry Ritholtz talks with Jeffrey Hirsch about how the stock market performs during war. (Ritholtz - 15 Min)
- The list of Europe's biggest stocks is filled with pharma companies. (Euro News)
- Europe is underpriced (Verdad)
- Mike Green about how the growth in passive has changed markets (Excess Returns - 1 Hr)
HOW TO INVEST
Active Investing
FACTOR investing
Managed Futures Simplified: The Impact of Selective Factor Analysis (DBI)
People often ask us at DBi how it’s possible to emulate the managed futures space with a limited set of instruments, given that a typical managed futures fund invests in 100+ positions. The answer lies in the power of simplification through strategic factor selection.
Read more on DBI
discretionary investing
ALTERNATIVE ASSET CLASSES
In today’s episode, we dive into Tina’s teams’ recent piece about what they call a possible “once-in-a-generation opportunity” in emerging market local currency debt. Tina gives a great overview of the emerging market debt asset class, and then we dive into the reasons behind her team’s call. She shares why today is reminiscent of 2004 and how she thinks about things like liquidity panics and sanctions risk.
WALL STREET
- Barry Ritholtz talks with Bill Dudley, former president and CEO of the Federal Reserve Bank of New York. (Ritholtz - 1 Hr 25 Min)
- What stocks Buffett is unwilling to sell. (Morningstar)
- Warren Buffett could have continued running investment partnerships with high fees, but he didn't. (Roger Lowenstien)
SUSTAINABLE investing
BAD BETS
ETFs
UCITS ETFS
Overview of the US and European ETF markets by leading Issuers. (ETFBook)
ETF Book Provided an updated overview of the US and European ETF markets by leading Issuers. US ETF market: AUM $7.96 trillion – European ETF market: AUM $1.81 trillion. iShares is leading in the US, but Vanguard is closing the gap. In Europe, iShares is much more dominant.
US ETFs
BlackRock is set to launch ten ETFs focused on Treasury inflation-protected securities (TIPS). Ranging in maturity from 2024 to 2033, these ETFs will seek to provide inflation protection to investors concerned with erosion of purchasing power. The new TIPS-defined maturity bond ETFs will carry an expense ratio of 0.1%. [ETF.com]
Wealth Management
Personal Finance
Interactive Investor Review (Banker on Wheels)
Interactive Investor stands out as a great choice for UK investors with families, and looking for multicurrency accounts to reduce FX-fee frictions. However, advanced investors may find limitations depending on their sophistication and needs.
Is it suitable for you?
Early Retirement
In this episode, we’re joined by Christine Benz, Director of Personal Finance at Morningstar, who shares fascinating insights from her latest co-authored paper: The State of Retirement Income 2023. Listen now and learn: Motivations for safe withdrawal rate research, Nuances of the 4% withdrawal rule.
DESIGN YOUR LIFESTYLE
Personal Development
Health & Wellness
CAREERS & Entrepreneurship
Travel
Crossing Tusheti – A Bikepacking Adventure in Northern Georgia (Film) (Bikepacking.com - 28 Min)
Tusheti National Park in northern Georgia and its trails are better known among hikers, but Sabine Schipflinger and Henna Palosaari decided to try bike packing through it with full-suspension mountain bikes. “Crossing Tusheti” documents their 180km journey over the 3,000m high mountain passes, lush green meadows, pristine beauty, remote mountain villages and countless switchbacks.
Winter’s Gifts: Bikepacking 1,000 Miles on the Iditarod Trail (Bikepacking.com)
Oliver traveled from Scotland to Alaska to ride the 1,000-mile Iditarod Trail last year, and he put together this reflection that links a series of memories from several weeks out on the ephemeral trail across the rugged Alaskan backcountry. Read his story of braving the elements and making unexpected connections here.
Read more on Bikepacking.com
Tech & Economy
economy
TECH AND SCIENCE
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Get Wise The Most Relevant Independent Weekly Insights For Individual Investors
If you’ve enjoyed our high-quality guides, you will love Europe’s best Wise Investing newsletter even more. Join tens of thousands of individual investors who trust us.
☕ Every Saturday morning with your coffee, enjoy FREE:
✅ Investing guides & tools
✅ Curated insights on investing strategies, ETFs, brokers, early retirement & lifestyle
✅ Exclusive articles crafted for wise investors like you
📩 Bonus: FREE Portfolio Checklist! Sign up today and receive a FREE 2-page checklist to:
- Build & monitor an efficient portfolio
- Clean up your personal finances.
🔒 We respect your privacy and never spam. Try it. Feel free to unsubscribe at any time.
And finally
How Much Netflix Costs in Every Country (Visual Capitalist)
Netflix, the renowned streaming giant, has transformed the way we consume entertainment, providing a vast library of movies, TV shows, and documentaries at the touch of a button.
However, the cost of accessing this digital haven varies significantly from country to country, reflecting economic disparities and market dynamics.
This graphic from Preyash Shah maps Netflix price by country, using standard (basic) package subscription monthly rates from Netflix.com and converting to USD as of December 10, 2023.
Read more on Visual Capitalist
Good Luck and Keep’em* Rolling!
(* Wheels & Dividends)
