What funding perception do you maintain that the overwhelming majority of your friends (75%+) don’t share?

In 2019, I made a decision to start out publicly answering the query above and including to it over time. You’ll be able to take a look at your complete thread right here, however my latest podcast with Michael Batnick and Ben Carlson touched on the identical subject so at their ‘nudging,’ I’m sharing your complete listing under too.

Apologies for offending anybody upfront!

2019

1. Investing based mostly on dividend yield alone is a tax-inefficient and nonsensical funding technique.

See our outdated e-book, Shareholder Yield: A Higher Method to Dividend Investing, for more information, free obtain right here.

2. The Federal Reserve has accomplished job.

I publicly say on a regular basis that they need to simply peg the Fed Fund Charge to the 2-year, and my buddy Tom McClellan has chart illustrating this view…

3. Development following methods deserve a significant allocation to most portfolios.

We’ve got in all probability the very best pattern allocation of any RIA that I do know with our Trinity fashions, the default allocation is half!

4. A primary low price world market portfolio of ETFs will outperform the overwhelming majority of establishments over time.

See our outdated GAA e-book for more information, free obtain right here.

5. US traders ought to be allocating a minimal of fifty% of their inventory allocation to non-US nations.

Take a look at our publish “The Case for World Investing” for more information.

6. 13F replication is a greater method to investing in most long-term hedge funds than investing within the hedge funds themselves.

Make investments with the Home free e-book obtain right here.

7. So long as you may have a number of the primary substances (world shares, bonds, actual property) your asset allocation doesn’t actually matter. What does matter is charges and taxes.

See our outdated GAA e-book for more information, free obtain right here. Plus, right here’s an outdated Twitter thread on the subject.

8. A easy quant display on public shares will outperform most personal fairness funds.

Study extra about this by listening to my previous podcast episodes with Dan Rasmussen & Jeff Hooke.

9. An affordable time-frame to judge a supervisor or technique is 10, possibly 20 years.

We wrote a paper on this subject, you may learn it right here.

10. I don’t really feel like I’ve to have an opinion on Telsa inventory.

Though I’ve shared my opinion with Elon on different matters earlier than (learn right here)

11. A passive index just isn’t the identical factor as a market cap index (anymore).

2020

12. Monetary advisors and asset managers are 4x leveraged the inventory market, and will/ought to hedge that publicity….and even personal no US shares!

Learn our longer publish on the subject right here.

13. Most endowments and pensions could be higher off firing their employees and transferring to a scientific portfolio of ETFs.

You needed to know I wrote a weblog publish about this, proper? CalPERS lastly informed me they gained’t rent me to do that. I attempted…

2021

14. Everybody likes to complain about manipulation, THE FED, r/wsb, yadda yadda… Markets are functioning as they at all times have. Which is, usually. Quick squeeze? Yawn, been happening eternally. 

Jamie Catherwood had an important publish on the historical past of brief squeezes. 

15. Excessive inventory market valuations are usually not justified by low rates of interest.

Learn my publish about this from January 2021 right here. 

16. A worldwide diversified portfolio of property is *much less dangerous* than placing your secure cash in brief time period bonds or payments.

This is among the matters coated in The Keep Wealthy Portfolio publish. 

2022

17. The CAPE Ratio is a helpful indicator and issue.

Right here’s my FAQ with the whole lot it’s good to know concerning the CAPE Ratio. 

18. It doesn’t have an effect on your funding end result for those who personal US shares. You can personal 0% and do exactly nice.

Right here’s my tweet about this with the chart under. 

19. A portfolio of sovereign bonds weighted by yield is superior to 1 weighted by market cap and whole debt issuance.

Learn our white paper on this right here. 

… to be continued …

Am I overestimating how a lot I disagree with others? What are beliefs you disagree together with your friends on? Be at liberty to answer to the unique thread right here.