Outstanding job, gentlemen! Our present bias puts too much financial emphasis on what is happening now and needs more on how our Future Self will be impacted. Jack Bogle, the Founding Father of Vanguard, said investing should be like watching paint dry, with little excitement in the short run but great satisfaction when we retire and look at the options we have created from our years of boredom. Investing in the stock market is akin to walking up a hill with a yo-yo. Up and down the yo-yo goes ( ups and downs of the market ), but steadily watch our investments grow as we walk up the mountain until we reach the peak and look back down. Thanks very much for those reminders!
15:57 what kind of "alternative investments" do you use for that kind of new, skittish investor? Gold trust? REIT? Dividend stocks? Or just going more bond-heavy overall?
25:20 Im not saying I agree or disagree that market is getting more efficient… but there are some highly intelligent people (Cliff Asness for example) who argue it is getting LESS efficient
Will you be replaced with a robo advisor? Unlikely. The average professional investor doesn't beat the market... But their goal isn't to beat the market. Because your goal is to provide your clients flexibility, and cash flow, and so many other goals based on specific client needs, you can't beat the market. Pure gains aren't the only goal, so robo investors or AI aren't going to appropriately account for all of that. You may end up using more and more AI with specific goals for your clients, but you yourself as an interface to clients and planning and strategizing for clients... That isn't going to be replaced so easily.
Not sure exactly which moment you are referring to, but we're assuming it's in reference to a specific index analysis, not an index fund. The CRSP Index as an example, is a retroactive look at how stocks within the index perform. You can definitely invest in an index FUND that tracks a specific index. Hope that helps!
• "Buy low and sell high." But "don't time the market." • "If you had missed the top 10 market days...$$!!" But what if you had missed the bottom 10 market days?? In fact, every investor needs to enter and leave the market at some point. Most investment managers have a vested interest in keeping you in the market as long as possible. But there are common sense strategies to flow resources with natural windfalls and business cycles. Would love to see an episode on that.
Its easy to time the market! Buy and hold 10 years and there are very few times that you won't make money! That's a 95%+ success rate! Timing the market on a scale of seconds to months? Oh... That is waaay harder to guess at. But if a company is in the news, they are likely near the top and are unlikely to see good gains for years. But put them on a watch list, wait for a drop, and buy it then... And then just wait. My general attempt is to wait for a dip, and sell for a 20% gain. Sometimes that takes weeks, sometimes months, and a couple have hung out and done nothing, and one has tanked bad... But I haven't sold, so I haven't lost yet! What I struggle with is looking for a top. I bought Metta stock at $80 and thought I did real good selling at $110 just a few weeks later. We'll, they went on to run up to $300+ now. So I got a 20%gain... But lost out on a 3x gain. So did I do good? Well, I didn't do bad. But could have done better. It is a matter of perspective, a matter of time horizon, and a matter of goals.
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Really enjoyed your guest today. Have a lot of takeaways. Thank you for sharing.
Thank you for watching! Zacc is amazing!
Outstanding job, gentlemen! Our present bias puts too much financial emphasis on what is happening now and needs more on how our Future Self will be impacted. Jack Bogle, the Founding Father of Vanguard, said investing should be like watching paint dry, with little excitement in the short run but great satisfaction when we retire and look at the options we have created from our years of boredom. Investing in the stock market is akin to walking up a hill with a yo-yo. Up and down the yo-yo goes ( ups and downs of the market ), but steadily watch our investments grow as we walk up the mountain until we reach the peak and look back down. Thanks very much for those reminders!
Love your words and the visuals they brought to my mind. Thank you David!
@@TheretirementnerdsMy pleasure, 90 Days From Retirement. Thanks for providing such valuable content!
15:57 what kind of "alternative investments" do you use for that kind of new, skittish investor? Gold trust? REIT? Dividend stocks? Or just going more bond-heavy overall?
26:21 wrong. How can you use the DFA matrix book and so terribly misrepresent what Value and Growth is?
25:20 Im not saying I agree or disagree that market is getting more efficient… but there are some highly intelligent people (Cliff Asness for example) who argue it is getting LESS efficient
Will you be replaced with a robo advisor? Unlikely.
The average professional investor doesn't beat the market... But their goal isn't to beat the market. Because your goal is to provide your clients flexibility, and cash flow, and so many other goals based on specific client needs, you can't beat the market. Pure gains aren't the only goal, so robo investors or AI aren't going to appropriately account for all of that. You may end up using more and more AI with specific goals for your clients, but you yourself as an interface to clients and planning and strategizing for clients... That isn't going to be replaced so easily.
Excellent perspective!
Wonder what you mean when you say you can’t invest in an index? 🤔🤔🤔 We’re obviously thinking/talking in two different languages.
Not sure exactly which moment you are referring to, but we're assuming it's in reference to a specific index analysis, not an index fund. The CRSP Index as an example, is a retroactive look at how stocks within the index perform.
You can definitely invest in an index FUND that tracks a specific index.
Hope that helps!
• "Buy low and sell high."
But "don't time the market."
• "If you had missed the top 10 market days...$$!!"
But what if you had missed the bottom 10 market days??
In fact, every investor needs to enter and leave the market at some point. Most investment managers have a vested interest in keeping you in the market as long as possible.
But there are common sense strategies to flow resources with natural windfalls and business cycles.
Would love to see an episode on that.
We're on it!
You have to “time the market” if you want to make financial gains. You are not going anywhere if you mis-time events.
Its easy to time the market! Buy and hold 10 years and there are very few times that you won't make money! That's a 95%+ success rate!
Timing the market on a scale of seconds to months? Oh... That is waaay harder to guess at.
But if a company is in the news, they are likely near the top and are unlikely to see good gains for years. But put them on a watch list, wait for a drop, and buy it then... And then just wait.
My general attempt is to wait for a dip, and sell for a 20% gain. Sometimes that takes weeks, sometimes months, and a couple have hung out and done nothing, and one has tanked bad... But I haven't sold, so I haven't lost yet!
What I struggle with is looking for a top. I bought Metta stock at $80 and thought I did real good selling at $110 just a few weeks later. We'll, they went on to run up to $300+ now. So I got a 20%gain... But lost out on a 3x gain. So did I do good? Well, I didn't do bad. But could have done better. It is a matter of perspective, a matter of time horizon, and a matter of goals.