Weekend Reading – S&P 500 vs Global Equities: 50,70 and 120-year data & Alternative Save Havens.
Wealth is the ability to fully experience life
Featured
S&P 500 vs Global Stocks: 50,70 and 120-year comparison(Banker on Wheels)
As portfolio managers, we are constantly reminded of changes in the world’s economy. Yet, our minds tend to resist change. Especially, when we have an emotional attachment to a country. Over the past 20 years, I visited most of the U.S. States. I spent time at NYU and joined a prestigious Wall Street Graduate Programme in the late 2000s. But while cycling the world, I was confronted with realities that I previously underestimated. I wouldn’t bet against the U.S., but I wouldn’t underestimate other markets either.
Portfolio Construction
Asset Allocation
Sizing Allocations to Liquid and Illiquid Alternatives Alongside Traditional Assets (AQR)
Traditional strategic asset allocation involves determining allocations to stocks, bonds, and cash that are appropriate to an investor’s risk appetite and investment horizon. Where do alternatives fit into this framework? Which alternatives deliver the biggest incremental benefit, and what is an appropriate strategic allocation? This paper presents one justifiable set of inputs and finds that alternatives earn themselves a sizable strategic allocation.
Understand Financial Markets
The lowdown on the risk of an(other) equity drawdown (Goldman Sachs)
While 60/40 portfolios have performed well since the summer, already dovish Fed pricing and upward pressure on term premia might mean a smaller bond buffer from here. Alternative safe havens such as Gold, Yen and CHF are likely to provide more diversification benefits.
- The Stock Market Just Hit All-Time High: Is It A Good Time To Invest? (Banker on Wheels)
- Passive investing, edge, and market efficiency: winners need losers (Monevator)
- Markets: Can This Continue? (A Wealth of Common Sense)
- Mind the Gap 2024 Report: Investors lost out on about 15% of the return their funds generated. (Morningstar)
How To Invest
Investing Mistakes Add Years To Your Working Life & 7 Other Investing Lessons From Cycling The World (Banker on Wheels)
One of the biggest misconceptions and most frequent question that people ask adventure cyclists is whether they’re lonely. It couldn’t be further away from reality. These adventures are some of the most exciting and enriching human experiences you can have. Some cycling experiences profoundly changed me, but also my way of looking at investing. You may think that spending 15 years on Wall Street would teach me more about successful investing than cycling. Surprisingly, Wise Money is more about perspective than technicals. Here are 8 Investing lessons I learned from Cycling the World.
Active Investing
Factor Investing
The Great Rotation (Verdad)
After a stellar 15-year run of robust earnings growth, US stocks have appreciated so much that they now represent 70% of developed market allocations, according to popular indices like the MSCI All Country World Index (ACWI). But with more than a quarter of total US market capitalization being attributable to just six technology stocks today, it’s worth questioning whether hyper-concentration in yesterday’s winners will be a winning strategy in the years ahead.
Discretionary Investing
- Why Quality Stocks Perform So Well (CAIA Association)
- Why the Wheel Strategy Doesn’t Work – Options Series Part 12 (Early Retirement Now)
- The butterfly effect, index funds, and the rise of mega caps (First Links)
- A severe case of COVIDIA: prognosis for an AI-driven US equity market (JP Morgan)
- Dealing with Decline: Intel, Walgreens and Starbucks put to the test! (Aswath Damodaran)
Alternative Asset Classes
Bad Bets
ETFs
UCITS ETFs
Wealth Management
Personal Finance
Global Wealth Report 2024 - Crafted wealth intelligence (UBS)
What does the future hold for global wealth? It’s a question which often comes up in the conversations we have with clients around the world. The answer is encouraging. Our analysis of over 50 key markets in this year’s Global Wealth Report shows the world is getting progressively richer across all wealth segments.
- The Simple Path to Wealth (Book Review) (Banker on Wheels)
- 10 Money Revelations in my 40s (A Wealth of Common Sense)
- A Wealth of Well-Being: A Holistic Approach to Behavioral Finance (Talking Billions)
- When Could Billionaires Become Trillionaires? (Visual Capitalist)
- Gasoline Prices Around The World 2024 (James W.)
Advertisement
COMPARE THE BEST BROKERS
- Unique & Comprehensive Methodology
- Absolute Scores Across All Brokers
- Category Rankings
- Each Week New Broker Reviews From The UK & Europe
- Exclusive Bonuses When You Open An Account
Reviewed by Bankeronwheels.com
Advertisement
Platforms
TastyTrade Review: A Cheap U.S. Broker Available To Europeans (Banker on Wheels)
Tastytrade feels like a pro downhill mountain bike. You have great engineering, more features than most people even know exist, tools for dampening shocks and benefiting from jumps. If you really know how to use it, you might shave time off your Strava PB on your favorite trails. Tastytrade will let you buy the world’s least expensive US listed ETFs, go short, lever up with margin, hedge with options and futures and lend out your securities to squeeze extra yield. But you don’t need lock in pedals, twin suspension and carbon fiber handlebars to get to the local shops or commute to work.
(Early) Retirement
5 Strategies for Managing Volatility and Longevity in Retirement (Whitecoat Investor)
This blog post credits many of its ideas to Wade Pfau, who is known for his in-depth analysis of retirement spending.The framework used in this discussion is based on Wade's work, with emphasis on balancing longevity risk—outliving one's money—against personal spending and market risks. Various retirement income strategies are explored, from total returns and time segmentation to income protection and risk-wrapped approaches, each addressing different risk tolerances and preferences.
Financial Advice
- How Do Clients Choose Wealth Managers? (Ria Intel)
- Preparing An Advisory Firm For The Risk Of A Market (And Revenue) Decline (Kitces)
- 7 Lessons Learned Launching A Sustainable Business Model To Serve (And Attract!) Profitable Millennials And Gen Z Clients (Kitces)
- Secrets of a $300 Billion Investment Advisor (The Compound)
- Breaking Bad News (TRAP)
- How is robo advisory and machine learning impacting the financial services market? (FTSE Russell)
Design Your Lifestyle
Personal Development
- Are We Too Impatient to Be Intelligent? (Behavioural Scientest)
- Young women are starting to leave men behind (FT)
- Q&A with Tim — Reinvention, Visualization Techniques, Making “Risky” Decisions, Parenting Considerations, Intuition, New Hobbies, Dating (The Tim Ferris Show)
- This Is Why I Don’t Have Goals (And What To Do Instead) (Ryan Holiday)
Careers & Entrepreneurship
Content Creators: My New Rules for Podcasting (The Tim Ferris Show)
“Whenever you find yourself on the side of the majority, it is time to pause and reflect.” — Mark Twain For nearly 15 years, I started almost every public presentation with the above quote. First and foremost, it was a reminder to myself. It still is. Four score and 750+ episodes ago, I started a podcast. In 2023, The Tim Ferriss Show crossed a billion downloads. This past April marked the 10th anniversary of the first episode. It seemed as good a time as any to pause and reflect. Let’s kick it off with a weird graph and wild numbers:
Travel
Bikepacking the Italian Summer on the Torino-Nice Rally (Bikepacking.com)
For a few years now, ever since attending the start of the Women’s Torino-Nice Rally in Torino, we have wanted to ride the route ourselves. As life goes, it usually takes a while before you can make a trip like that happen. Seasons play a role in this route, as it covers large sections of the western Italian and sometimes eastern French Alps, where temperatures can drop rapidly outside of summer. But finally, in August, we made it happen, being a little cautious with our expectations as summer holidays hit their peak.
Tech & Economy
Economy
Tech & Science
And Finally
Can you trust your phone? (Veritasium)
Exposing The Flaw In Our Phone System. In this episode: - I hacked Linus! - How Steve Jobs and Steve Wozniak hacked the telephone network - Early history of the telephone - The kidnapping of Sheikha Latifa - How hackers gain access to phones - How I was able to spy on Linus’ phone - How hackers can intercept text messages - How to protect your phone from hacking
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
🤔 Wondering why finding honest Investing Guidance is so difficult? That’s because running an independent website like ours is very hard work. If You Found Value In Our Content And Wish To Support Our Mission: