Weekend Reading – The Portfolio To Live Longer
- Recommeded Reading
- Youtube (Required watch time)
- Podcast (Listening Time)
- Academic Research - May require intermediate/advanced knowledge
- Noteworthy Twitter Thread
You miss 100% of the shots you don’t take.
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 Asset Allocation (ii) Acting wisely by avoiding behavioural traps and also (iii) publications that help understand how financial markets work.
CONSTRUCT YOUR PORTFOLIO
How Much Should You Pay for An ETF? (Bankeronwheels.com)
According to Vanguard research, investing through an ETF that is 0.6% more expensive than the lowest available can lower the likelihood of a successful early retirement by more than half. But how exactly should you assess an ETF’s cost? Especially when one ETF has a better historical performance and another ETF has a better forward-looking Total Expense Ratio. Here are some questions that European and UK Investors frequently ask.
HOW TO INVEST
As behavioral finance has moved into the mainstream, one thing has become clear. It’s great to know there’s a way to explain a client’s sub-optimal behavior. But, it’s an entirely different challenge to know what to do about it. In other words, behavioral finance has done a great job of providing advisors with a list of diagnoses. There are over 20+ biases to pick from. But, we need less diagnosis and more prescription.
- Would You Rather Outperform During Bull Markets or Bear Markets? (A Wealth of Common Sense)
- Investors are still their worst enemy (IFA)
- Why to focus on long-term market results (Vanguard)
- The four questions an investor must ask (Behavioural Investment)
- Worry About the Right Things (Irrelevant Investor)
- The business of risk (Humble Dollar)
- Lessons from the Fund Manager Whisperer - getting people to listen and change (Decision Nerds - 54 Min)
UNDERSTAND FINANCIAL MARKETS
Mapped: The Global Bond Market
Valued at over $51 trillion, the U.S. has the largest bond market globally. Government bonds made up the majority of its debt market, with over $26 trillion in securities outstanding.
In 2022, the Federal government paid $534 billion in interest on this debt. China is second, at 16% of the global total. Local commercial banks hold the greatest share of its outstanding bonds, while foreign ownership remains fairly low. Foreign interest in China’s bonds slowed in 2022 amid geopolitical tensions in Ukraine and lower yields.
Read more on VisualCapitalist.com
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
- Booming but be Wary: Your guide to Thematic Funds (Morningstar)
- Portfolio Tilts versus Overlays: It’s Long/Short Portfolios All the Way Down (Flirting With Models)
- Valuation metrics in emerging debt - Q1 2023 (GMO)
- How factor exposures change over time - A study into Information Decay (Alpha Architect)
- Here’s Where Market Timing Works (Institutional Investor)
STOCKS
SUSTAINABLE investing
ALTERNATIVE ASSET CLASSES
Mapped: House price growth around the world
In many countries around the world, it seems like house prices have been constantly climbing.
Houses fulfill a rare mix of necessity, utility, sentimentality, and for many, also act as a primary investment to build wealth. And it’s that last angle, combined with increasing demand in many countries, that is driving housing prices skyward.
Using data from the Bank of International Settlements, Ehsan Soltani has ranked the change in real residential property prices for 57 countries from 2010 to 2022.
Read more on VisualCapitalist.com
WALL STREET
crypto
BAD BETS
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.
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- 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.
PERSONAL FINANCE
This section is dedicated to UK and European Products. It can also touch on other European jurisdictions outside the Euro-zone.
Wealth Management
FINANCIAL PRODUCTS
COST OF LIVING
UK: 17 ways to save money on your household bills and living costs in 2023 (which.co.uk)
Life is getting more expensive for all of us at the minute, and rising living costs are a concern for households across the country. The cost of living has surged at its fastest pace in almost 40 years, with inflation – the rate at which prices are rising – hitting 10.4% in March. With interest rates also being increased, record fuel prices and a host of household bill hikes coming into force in April, a team of Which? experts have answered 17 key questions on how you can cut your household expenses.
Read more on which.co.uk
OUR Community
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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?
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DESIGN YOUR LIFESTYLE
Personal Development
Creating and maintaining habits are an important part of the FI journey. Not only does it require you to prioritize what you value, but it can lead to success in many areas of your life. However, while we talk about the success that habits can lead to, sometimes we overlook that starting a habit can be stressful or overwhelming
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Health & Wellness
CAREERS & REMOTE WORK
Work, Play & Surf: 5 Beach Gateways for Digital Nomads from Okinawa to Koh Lanta (Bankeronwheels.com)
Over the past year, Raph and I worked remotely from Digital Nomad places in Asia and Europe. Sometimes illusionary in a corporate environment, work-life balance can also be tricky on the move. We tested different coworking spaces, but sometimes adapted a work-from-home style when options were limited. Time off while travelling can be incredibly rewarding. We wanted to bring out unique activities each place offers to make your choice easier.
EARLY RETIREMENT
- Considering the universe of financial choice - Savings Vs Long Term Investment for Retirement (Vanguard - 20 min)
- A personal-finance blogger quit being a landlord, sold her rental properties, and still plans to retire early. Here's how. (Business Insider)
- Ultimately, a plan for retirement that does not account for the “where” and “why” is not a complete strategy. (Think Advisor)
- Will you have “retirement regret?” (Rad Reads)
Travel
TECH
miscellaneous
OUR Community
Last Week We asked you
How would you describe your current life situation?
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