Weekend Reading – JP Morgan Guide To Alternatives & Market Valuations across dozens of asset classes
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:
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Portfolio Construction
Asset Allocation
US vs Global Investing: Are you willing to bet the past 15 years continue? If it does, you’ll still be OK. (Cambria Investments)
In 2015, our CIO, Meb Faber, wrote the book Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies. The book examined various asset allocation portfolios and their performance from 1973 – 2013. While most of the portfolios had returns similar to those of the US stock market, they also featured lower volatility, drawdowns, and a higher Sharpe ratio than just sitting in the S&P 500.
Current market across asset classes: valuation percentile vs history; 100% = most expensive, 0% = least expensive (JP Morgan)
For investors, there’s little room for error with valuations this high and since valuations are now driving markets just as much as earnings growth. Also: the S&P 500 just registered two 20%+ years in a row, something which occurred just ten times since 1871. Only during the 1990’s bull market and the Roaring Twenties did the good times continue for another two years. Plan accordingly.
Understand Financial Markets
How To Invest
What shapes investor beliefs and behaviours? Steve Utkus brings decades of groundbreaking insights to this episode. Drawing on exclusive access to Vanguard’s anonymized client data and investor surveys, Steve uncovers the intricate links between what people believe and how they invest. Join us today for this fascinating conversation as we unpack fresh perspectives on investor behaviour and the evolving role of financial advice!
Active Investing
Factor Investing
Bargain, Value Trap or Something in Between? (GMO)
Over the last decade, U.S. large cap growth stocks have been far and away the best performing major financial asset in the world. However, as most good contrarians know, the most attractive prospective investment opportunities rarely come from past winners, especially when they have been of this magnitude.
- The Greatest Scourge in Factorland: Revaluation Alpha = Fake Alpha (JPM Series) (Research Affiliates)
- Value investing: "The reports of my death have been greatly exaggerated" (Robeco Qauntitative Investing)
- Formula Investing (SSRN)
- Intangibles and the Performance of the Value Factor (Alpha Architect)
Discretionary Investing
Alternative Asset Classes
JP Morgan's Guide to Alternatives (JP Morgan)
The document explores the role of alternative investments in enhancing portfolio diversification, balancing risk, and improving returns. It highlights asset classes such as private equity, hedge funds, real estate, and infrastructure, showcasing their unique attributes compared to traditional stocks and bonds. The paper also delves into historical performance data, correlations, and strategies to optimize allocations in varying economic conditions.
Crypto Ownership Growth by Region (Visual Capitalist)
In 2024, approximately 562 million people own some type of cryptocurrency, equal to 6.8% of the global population. As the price of bitcoin has more than doubled this year, global crypto ownership has increased by 33% since 2023 alone. In the past year, every global region saw ownership grow amid increasing investor confidence and more supportive regulatory environments.This graphic shows crypto ownership growth by region in 2024, based on data from Triple-A. Where is Crypto Ownership Rising the Fastest?
Wall Street
Bad Bets
The true story behind rogue trader Jerôme Kerviel (France 24 English)
His risky market trades at French bank Société Générale saw Jerôme Kerviel convicted of breach of trust and forgery in 2008. Now, the docu-series "Breaking the bank: One trader, 50 billion" revisits his story. Director Fred Garson tells us why he wanted to hear Kerviel's point of view, as well as accounts from his colleagues at the bank, and discusses the psychological investigation within the series.
ETFs
UCITS ETFs
Diversification properties and risk-adjusted performance of securities lending (state street)
When institutional investors assess investment opportunities, a key consideration is the expected incremental return relative to the marginal risk and the diversification benefits the investment might bring to the entire portfolio. We take the same approach in evaluating securities lending. This analysis examines the historical performance of more than 5,000 anonymized and aggregated securities lending programs over 15 years (2008 to 2023) to quantify the historical returns relative to losses and compute a reward-risk ratio (e.g., Sharpe ratio). These metrics are evaluated over different market regimes and across regions.
US ETFs
Wealth Management
Personal Finance
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(Early) Retirement
Financial Advice
Design Your Lifestyle
Personal Development
- The Productivity Paradox: Why Less Is More (Plain English)
- How Much Does Our Language Shape Our Thinking? (The New Yorker)
- Your Brain Doesn’t Work the Way You Think (freakeconomics)
- Dr. Becky Kennedy — Parenting Strategies for Raising Resilient Kids, Plus Word-for-Word Scripts for Repairing Relationships, Setting Boundaries, and More (The Tim Ferris Show)
Health & Wellness
Here’s some breaking news on this fine Tuesday: I’m a fan of exercise and healthy eating. Exercise and eating well—the healthy lifestyle—is about as close to a magical pill as we’ve got. It gets you farther from death and closer to a richer, disease-free life. And yet … the healthy lifestyle is not really a magic pill. Magic pills cure and prevent everything. They should also be cheap and easy to obtain. A healthy lifestyle can’t fix every woe, and it’s not free or easy.
Careers & Entrepreneurship
Harvard Professor on How to Not Bankrupt Your Family (Latticework)
I recently had the pleasure of speaking with Lauren H. Cohen, the L.E. Simmons Chaired Professor in the Finance & Entrepreneurial Management Units at Harvard Business School and a Research Associate at the National Bureau of Economic Research. Professor Cohen is the Faculty Co-Chair and Designer of the HBS Executive Education course “Building a Legacy: Family Office Wealth Management,” designer of a first-of-its-kind MBA course entitled “How to Not Bankrupt Your Family,” and Faculty Co-Chair and Designer of the HarvardX Fintech course. This conversation explores the topic of family office wealth management: - Key criteria in deciding to set up a family office - Running a family office - Involving children in a family office - Allocating capital across a portfolio of investments - Longevity: how to protect wealth over many generations
Travel
Tech & Economy
Economy
Politics, Policy and the Reconfiguration of Supply Chains (Citigroup)
Manufacturing supply chains are undergoing a worldwide reshaping, driven by a combination of economics, geopolitics, technology and policy intervention. Underpinning this in recent years has been a growing desire to build resilience to shocks by reducing concentration risk, rising protectionism, and rising geopolitical risks associated with US-China strategic competition. All three of these factors are likely to lead to increased demand to diversify production and import reliance from China. T
- The UK’s Major Trade Partners in One Chart (Visual Capitalist)
- Latin America’s GDP per Capita by Country (Visual Capitalist)
- Why France’s Economy is Doing Better Than it Looks (TLDR)
- The $115 Trillion World Economy in One Chart (Visual Capitalist)
- The End of South Korea's Economic Miracle (Economics Explained)
Tech & Science
And Finally
Number of Marriage per 1000 People (Euro Stat)
In 2021, the EU countries with the highest number of marriages relative to the population were: - 🇭🇺 Hungary (7.4 marriages per 1 000 people) - 🇷🇴 Romania, 🇱🇻 Latvia and 🇱🇹 Lithuania (all 6.0) Lowest marriage rates in: - 🇸🇮 Slovenia and 🇵🇹 Portugal (both 2.8 marriages per 1 000 people) - 🇱🇺 Luxembourg (3.0)
Good Luck and Keep’em* Rolling!
(* Wheels & Dividends)
Trade Wars, Real Wars, but Equities Close To All-Time Highs: Is It A Good Time To Invest?
7 Reasons Why Japan May Be Your Next Cycling Adventure
Nomads in 2026: Genki vs SafetyWing – Which Travel Insurance Wins?
How You Can Cycle The World – A Practical Guide
Weekend Reading – Vanguard Cuts Fees across 15 ETFs & IBKR launches prediction markets
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