Research Roundup: Japanese Bond Demand, U.S. Fiscal Policy Drag, Private Equity Popularity, and A-Shares Inclusion
Here are the best things I read this week, their main takeaways, and the most important chart from each piece:
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Summarizing the Case for International Stocks
Imagine you took a time machine back to 2007. This is what the rear-view mirror looked like for U.S. and international stocks: International stocks substantially outperformed and U.S. investors missed out by sticking close to home. Since 2007, the roles have reversed and U.S. stocks have generated higher returns. The chart below shows U.S. and…
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Research Roundup: Buybacks, CAPE, Earnings Forecasts, and Rebalancing Strategies
Here are the best things I read this week, their main takeaways, and the most important chart from each piece:
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7 Key Takeaways from Taleb’s Antifragile
Nassim Taleb is a polarizing guy. He gets in Twitter fights, eats a lot of squid ink pasta, but also has many fans. I enjoy his writing and, among all his books, think Antifragile is the most complete description of his philosophy on life and markets. All 544 pages are worth reading, but here are…
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Lump Sum or DCA? Neither – Try VA
Value averaging is an effective alternative to lump sum investing or dollar cost averaging. I personally use it whenever new clients want to spread out initial allocations over time.
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Key Takeaways from The Hour Between Dog and Wolf
This book explains the link between hormones and markets and shows how an investor’s physiology changes throughout a market cycle.
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Which Investments Have the Highest Volatility Tax?
Investors earn compound returns, not average returns. The difference between compound and average returns is called the “volatility tax”. This post shows the historical volatility tax for major asset classes.
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