Weekend Reading – Can you afford to retire early?

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:

A lot of people with high IQs are terrible investors because they've got terrible temperaments. You Need to keep raw, irrational emotions under control.

Featured

Banker’s Paradise: Two Easy Ways To Fool Investors (Banker on Wheels)

Investors struggle to understand returns. First, many don’t grasp how today’s higher prices may reduce tomorrow’s returns. Investors love chasing trends. Then, they have a blind spot for risk. Investors want cold, hard cash, not abstract concepts like risk-adjusted returns. A combination of both of these issues creates a perfect cocktail to sell products to investors. Are advisors misleading clients?

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Portfolio Construction

Asset Allocation

New research into the stock-bond correlation shows when they correlate – and when they don’t (Robeco Qauntitative Investing)

Robecoo conducted a comprehensive study on the correlation between stock and bond returns, crucial for asset allocation decisions. The findings, which indicate significant shifts in correlation across different periods, offer valuable insights for managing multi-asset portfolios and understanding bond risk premiums in various macroeconomic contexts. Laurens explains the findings.

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Understand Financial Markets

Do Stock Outperform T-Bills? (Meb Faber)

In today’s episode, Meb and Hank discuss Hank's research on long-term stock returns and wealth generation. They explore the concept of power laws in the stock market, where a small percentage of stocks generate significant returns, while the majority underperform.

How To Invest

Risk Parity Investing (BoW 100% Equity Article Mentioned in first 5 minutes) (The Security Risk Podcast)

Frank Vasquez is a financially independent retired lawyer who hosts a great podcast, Risk Parity Radio, where he talks about risk parity investing concepts from the perspective of DIY investors. This is our second conversation. I highly recommend that you also check out our first one. This is a very wide ranging discussion.

Active Investing

Factor Investing

Cliff Asness: The Cliff Factor (PhilBak Podcast)

Cliff Asness is the founder, Managing Principal and Chief Investment Officer at AQR Capital Management. Phil joins Cliff at his AQR office to chat about market concentration, value investing, and the market environment as a whole. Through the conversation, Cliff shares a wealth of knowledge and perspectives from his 30+ years of experience in the asset management space.

Discretionary Investing

Alternative Asset Classes

Wall Street

Listen all the way - Warren ends it epically. (Compound248)

“Hi, my name is Andrew and I’m wondering if you had more day with Charlie, what would you do with him?“ The most poignant question of the day came from a child. Buffett’s answer eulogized Charlie and sprinkled fabulous life advice throughout. “[Charlie and I] never had any doubts about the other. person.“

Warren Buffett also accidentally called Greg Abel “Charlie” which may be one of the most charming and perfect honors seen of the recently passed Charlie Munger.

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ETFs

UCITS ETFs

BlackRock World ETF flash crash on Deutsche Boerse: A deep dive (ETF Stream)

BlackRock’s global ETF experienced a flash crash on Deutsche Boerse last month. How did this happen on one of Europe’s most liquid ETFs and can it be avoided in the future? Following the US jobs data report, the $72.8bn iShares Core MSCI World UCITS ETF (EUNL), Europe’s second-largest ETF, fell 5% in less than a second at 2.30pm Central European Time on 5 April, before jumping back up shortly after as market-making activity resumed.

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US ETFs

Wealth Management

Personal Finance

Brokers

Trading 212 Review

Our take: Trading 212 is Tier 2 broker offering a diverse selection of products with highly competitive fees. It has established a partnership with Interactive Brokers to facilitate exchange access and custody services. Notably, unlike some competitors, Trading 212 makes securities lending optional, which we appreciate.

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(Early) Retirement

Can you afford to retire early? (Click first FT link in search)

“I don’t want to have to work into my seventies,” says Rochelle White, who runs a marketing agency in Milton Keynes. The 38-year-old instead plans to retire at 56.

It’s an early target, but not that unusual. The popularity of the “Fire” movement — reaching financial independence and retiring early — has grown in recent years, as more workers dedicate their careers and investment portfolios to a single alluring goal: a 30 or even 40-year retirement.

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Design Your Lifestyle

Personal Development

Travel

Tech & Economy

Economy

The Top 20 Countries in Debt to China (Visual Capitalist)

In this graphic, we ranked the top 20 countries by their amount of debt to China. These figures are as of 2022, and come from the World Bank. This dataset highlights Pakistan and Angola as having the largest debts to China by a wide margin. Both countries have taken billions in loans from China for various infrastructure and energy projects. Critically, both countries have also struggled to manage their debt burdens. In February 2024, China extended the maturity of a $2 billion loan to Pakistan. Soon after in March 2024, Angola negotiated a lower monthly debt payment with its biggest Chinese creditor, China Development Bank (CDB).

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Tech & Science

And Finally

Life Expectancy by Region (1950-2050F) (Visual Capitalist)

Average life expectancy at birth is projected to surpass 80 years in most global regions by 2050, according to the UN World Population Prospects 2022. This infographic illustrates the trajectory of life expectancy at birth for both sexes, comparing data from 1950 and 2000 with the organization’s projections for the year 2050. At the beginning of the 19th century, no country had a life expectancy exceeding 40 years, with much of the global population enduring extreme poverty, limited access to medical care, and a lack of sanitation. For instance, individuals in Norway had a life expectancy of 72 years, while in Mali, it was merely 26 years.

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Thank you for reading.
Good Luck and Keep’em* Rolling!

(* Wheels & Dividends)

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