March 20, 2023

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

In 2019, I made a decision to begin publicly answering the query above and including to it over time. You may try all the thread here, however my current podcast with Michael Batnick and Ben Carlson touched on the identical subject so at their ‘nudging,’ I’m sharing all the record under too.

Apologies for offending anybody prematurely!

David Allsopp on Twitter: "Reminder that the "triggered feminist" meme, much loved by internet arseholes everywhere, comes from a video where the lady is actually making pretty calm, rational arguments in a

Table of Contents


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

See our previous guide, Shareholder Yield: A Higher Method to Dividend Investing, for more information, free obtain right here.

2. The Federal Reserve has achieved a superb job.

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


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

We have now most likely 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 international market portfolio of ETFs will outperform the overwhelming majority of establishments over time.

See our previous GAA guide for more information, free obtain right here.

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

Try our put up “The Case for World Investing” for more information.

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

Make investments with the Home free guide obtain right here.

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

See our previous GAA guide for more information, free obtain right here. Plus, right here’s an previous Twitter thread on the subject.

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

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

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

We wrote a paper on this subject, you’ll be able to 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 here)

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


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 put up on the subject right here.

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

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


14. Everybody likes to complain about manipulation, THE FED, r/wsb, yadda yadda… Markets are functioning as they all the time have. Which is, usually. Quick squeeze? Yawn, been occurring ceaselessly. 

Jamie Catherwood had a fantastic post on the historical past of brief squeezes. 

15. Excessive inventory market valuations will not be justified by low rates of interest.

Learn my put up about this from January 2021 right here. 

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

This is without doubt one of the matters lined in The Keep Wealthy Portfolio put up. 


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

Right here’s my FAQ with all the things that you must know in regards to the CAPE Ratio. 

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

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


19. A portfolio of sovereign bonds weighted by yield is superior to at least one weighted by market cap and complete debt issuance.

Learn our white paper on this right here. 


20. Placing all your cash into one asset, just like the S&P500, shouldn’t be “boring”.

… to be continued …

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