Invest Smarter - SoundSage

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Today I have a special guest, Amobi Okugo. Amobi was drafted to the Philadelphia Union in 2010, which just happened to be the inaugural season for the Union. He spent 5 years in Philly and was a starter and an integral part of the team until he moved on in 2015. He then bounced around the MLS for a couple of years, before becoming a free agent and missing a whole year in 2018. He's now been back at it in Austin playing for their USL team, which is the second tier of professional soccer in the United States. I explored with Amobi what it was like playing in Philadelphia, which has some of the most loyal fans in the country. We then get into what it's like being an athlete and the challenges as well as benefits it brings. We dive into what it is like being drafted to play the sport you love, and then at the same time, we explore what it's like to then be released by a team and not know what your future holds. Amobi is very driven and has started a company called the Frugal Athlete which he hopes will be the go-to place for athletes to find resources that help them make smarter financial decisions. Amobi knows there have been too many athletes that have lost all their money, so we get into that and how he's trying to help. I think I’ve talked long enough, lets just get into this special episode, I think you will enjoy it. Here's my conversation with Amobi Okubo. Connect with AmobiA Frugal AthleteTwitter

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On today's show, I talk with David Barnett, who is an expert in buying and selling business. I wanted to come at the conversation from the angle of buying a business as an income generating asset in retirement. He had a lot of wisdom to share. We cover:

How did David become an expert in buying and selling "main street" businesses?
Should you buy or sell a business in retirement?
Aligning your business venture to your interests
Why buying a business and being "hands-off" is an unrealistic expectation
Don't be fooled by the promise of buying an "absent-owner" business
There is a lot more to owning a self-serve car wash than just collecting quarters
What are the most important things to think about when buying a main street business
Why do you need to make a proper cash flow projection
Three components of the typical financing for main street business transactions
Red flags when buying a business
How Seller Financing can help foster a successful transition
The fragile nature of businesses
Does the goodwill of a business reside with the business or the owner?

Connect with David

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New Website!The Invest Smarter Podcast has a new website! Go to www.investsmarterpod.com to check it out. You can subscribe to our newsletter right from there and get our eBook, "Successfully Navigating the Market Cycle.
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Today I talk about inflation. Specifically, I talk about where we stand today with inflation, reasons it may subside, and reasons it may continue. I then discuss why it is so damaging to our wallets and cover the specific ways we can combat inflation.

Outline of the show
Where do we stand with inflation? [1:25]
How inflation hurts our wallets [11:45]
How to combat inflation [15:00]

Where do we stand with inflation?Inflation is currently running hot. The last official reading was 5.4% year over year. We've certainly seen much higher inflation at the grocery stores and the pump. The question is, are we going to have sustained high inflation, or will it subside? I talk about a few reasons for both outcomes.

How inflation hurts our walletsInflation is terrible for cash. It eats away at the value of our money. If you have $100,000 in the bank, and over the next twelve months, the price of goods inflates by 5%, you effectively are left with 95,000 dollars. That is the problem will inflation.

How to Combat InflationStarting from super conservative to adding on some risk, I cover the options to put our cash in places that will protect us better from inflation. From high-yield savings accounts to stocks, I talk about several choices we have.

Articles Mentioned in the Show

Artificially Low Rates Are Risky, Says Howard Marks
US CPI Inflation Metric Rises 0.4% in September, More Than Forecasted
Food Industry Execs: Inflation Could Worsen Yet - The Food Institute
Here Are Six Reasons Why Inflation Will Not Be Transitory

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Today we talk about Roth IRAs for your kids and why you shouldn't wait for a dip to invest.

Outline of the ShowRoth IRA for you kids [4:06]
Don't wait for the dip [14:00]

On today's show, we talk about why and how to open a Roth IRA for your child. Roth IRAs are super powerful. You put after-tax dollars into it, and you take the money out tax-free in retirement when you are over age 59 ½. Now if you have kids, I want you to consider opening a Roth IRA for them. And let me tell you why. Here are a couple of reasons:

EducationOpening a Roth IRA for your child can help them become smart with their money. You can have them engage in investment decision-making. Maybe they are really into video games. You can have them invest in the companies that make their favorite games. Maybe your daughter loves fashion. You can research fashion companies to invest in.

The Power Of CompoundingThis is also a great way to teach your child the power of compounding. Show them how much their summer earnings could grow by investing it instead of spending it.

We go in this and much more on today's show.

Listener QuestionMichael wants to know if he should wait for a dip to put money to work. I break down my answer for him and illustrate why I think waiting for a correction is the wrong way to go about it.

Articles Mentioned in the Show

Time Horizon is Everything
Personal finance legislation
Financial Literacy Study

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Rising rates, in theory, are bad for tech stocks. Is that always true? I dive in with the help of a recent article from Ben Carlson. Next, I look into how adding a bit of bitcoin to your portfolio could mean you are investing like a Nobel Prize-winning economist. Finally, we answer a listener's question about retiring early before a feared financial disaster in the economy.

Outline of This Episode[] Are rising rates bad for tech stocks?
[] Can Bitcoin help you diversify your portfolio?
[] What should Steve think about retiring early while he also fears a market crash?

Why are Rising Interest Rates Bad for Tech Stocks?This year, there is a definite relationship between rising rates and falling stock prices. The other day, Ben Carlson put out a great piece on his blog showing the inverse relationship between yields and the QQQ, which is the 100 biggest stocks in tech-heavy NASDAQ. Sure enough, in 2021, rising rates have equaled weakness in the QQQ. Why is this happening? In theory, it's all about cash flows. Every single financial assets valuation is equal to the present value of future cash flows. To come up with a present value of future cash flows, you discount that future cash flows at prevailing interest rates (or some variation of it depending on the asset class). The higher the discount rate, the lower the present value.

Can Bitcoin help you diversify your portfolio?What do Bitcoin and legendary economist Harry Markowitz have in common? They both advocate for modern portfolio theory. At least Bitcoin has up until now (that is subject to change without notice!). Modern Portfolio Theory says that a rational investor should choose an optimal portfolio that maximizes return but doesn't take too much risk. While Bitcoin on its own has the volatility that would make even the staunchest investor quake, when added modestly to a portfolio, it has displayed positive contributions to portfolios as a whole.

Steven has a QuestionSteven asks whether he should consider delaying his early retirement because he has been reading articles and fears a financial crisis could be around the corner. Without speculating on the odds of a crisis, I attempt to help Steven think through some considerations and ultimately recommend that he may be well served to speak with a planner who can stress test his financial plan.

Articles Mentioned

Why it is wise to add bitcoin to an investment portfolio
Are Rising Interest Rates Bad For Tech Stocks?

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More Volatility

Market volatility stayed elevated last week as interest rates made a move higher, a government shutdown loomed, and a major infrastructure deal hangs in the balance. Yet, the market is still less than 5% down from its all-time highs. Since we spent 220 plus days straight less than 5% from the highs, (S&P 500) it is natural that the first bout of volatility catches some of us off guard and causes us to make irrational decisions. Let's make sure that if this much volatility gets us feeling nervous, we gut-check our portfolios.

Investing in Megatrends

My guest today is Luke Hallard. He is the founder of Telescope Investing and the host of the Telescope Investing Podcast. He has a clear framework for investing in megatrends - trends that are shaping our future. It is very similar to thematic investing. In the interview we go over:

Luke's journey to becoming a (nearly) full-time investor
Luke's framework for investing in megatrends
Some of the biggest trends in the market
How to hold on when volatility shows up
Who megatrend investing is for
Sustainable investing
and more

Connect with Luke

Telescope Investing Website
Telescope Investing Podcast

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We finally had significant market volatility on Monday of last week (9/20/2021) as fears that a huge property developer in China, Evergrande, was going to default on its massive pile of debt and cause a 2008 style crisis all over again. Well, before we could blink, it was over and the market came right back. However, could that have been the crack in the Armor? Also, we discuss how earnings calls can predict the performance of a stock, and how recent earnings calls show that inflation is on the mind of corporate America. Finally, there has been a new tax proposal that has serious implications for your retirement plans. I'll go over some of the biggest changes.

Today's Headlines

China Evergrande: What Is It and Why Are Investors Worried?

Evergrande debt: Collapse could have domino effect on China properties

China: Evergrande Portends Housing Crisis

S&P 500 companies have inflation on the brain, as ‘inflation’ mentions on earnings calls hit 10-year high

Complex Language on Earnings Calls Is a Warning to Investors

Main Topic

7 Ways The New Tax Bill Could Impact Retirement Planning

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Do you have any 401(k)s left behind with previous employers? Should you keep them? Research shows that you could be leaving a small fortune of money on the table if you do. We get into this today on the show. Also, we talk about a recent headline from CNBC about "stock growth coming to a peak," how Bitcoin gets lost and found, and why the obesity pandemic is such a mystery.

Today's headlines

Four reasons stocks may be approaching 'peak growth’ and what that may mean for investors

A father and son who help clients find forgotten crypto passwords estimate billions of dollars worth of lost bitcoin is recoverable.

What happens to lost bitcoin?. Every year, millions of dollars worth… | by SatoshiLabs

A Chemical Hunger – Part I: Mysteries – SLIME MOLD TIME MOLD

A Chemical Hunger – Part II: Current Theories of Obesity are Inadequate

A Chemical Hunger – Part III: Environmental Contaminants – SLIME MOLD TIME MOLD

Main Topic

The True Cost of Forgotten 401(k) Accounts

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Today I talk about investing in companies that actually innovate with Dan Toma, an innovation expert who helps companies transform into innovative machines.

But first, I talk about some staggering stats about how underprepared baby boomers are for retirement, and how legislative changes are coming to make saving for retirement easier and more flexible.

Outline of this Episode
[1:45] Baby Boomer's underprepared for retirement headline
[5:25] Interview with Dan Toma

Baby Boomer's are Underprepared For RetirementPrior to the 401k, savers relied more heavily on pensions and defined benefit plans. The 401k shifted the onus of saving from the employer to the employee. 40 years after this change, we see the results have been quite mixed. A study from the National Institute on Retirement Security, the median amount of financial assets owned by baby boomers is less than $50,000 which translates to only about $160 per month! I think education is the most important thing. We need to be teaching people about personal finance starting at an early age. A report called the Nations Report Card on Financial Literacy gives 66% of states a grade of C or worse for financial literacy instruction, so there's clearly room for improvement.

Investing in Innovative CompaniesDan Toma is an innovation thought leader and the co-author of the award-winning book The Corporate Startup and Innovation Accounting. His work focuses on enterprise transformation -- specifically on the changes, blue-chip organizations need to make to allow for new ventures to be built in a corporate setting. He was featured on the Thinkers50 2020 Radar list of management thinkers to watch and is a member of the World Economic Forum’s working group on accelerating digital transformation.

In the interview we discuss:

What is innovation?
What is “innovation theater”?
The value of financial statements
Smithsonian Institute as an Innovation example
Microsoft as an innovation example
Roche as an innovation example
Things to look for in a company that is fostering innovation
ESG is a neighbor of innovation?
Identifying red flags
Looking at where a company is investing
The New Product Vitality Index (NPVI)
Why you shouldn’t boil innovation down to one indicator

Learn More About Dan on his website where you can check out his blog and his books:
Dan's Website

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Register for our upcoming webinar on tax planning

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Jimmy Song has written three books. His latest is called Thank God for Bitcoin, and he gets into why the current financial system is corrupt and why Bitcoin can fix it. And that is what we get into today. He is hands down the most interesting person I have talked to regarding Bitcoin and cryptocurrency.

What you'll learn:

What is a Bitcoin Maximalist
What is Bitcoin
Common arguments against Bitcoin and the Rebuttal
Why Bitcoin is not like the Tulip Bubble
Why Bitcoin is volatile
Can Bitcoin be a practical medium of exchange?
Bitcoin adoption around the world
The Bitcoin standard?
Why is the US dollar the world's reserve currency?
Why our current system is corrupt
Why credit is corrupt
Dirty little fiat secret
About Jimmy's book - Thank God for Bitcoin

Follow Jimmy:

Follow Jimmy on Twitter
Bitcoin Tech Talk
Thank God for Bitcoin on Amazon

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Thank God for Bitcoin: The Creation, Corruption and Redemption of Money

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Today I am joined by Susana Selles. She is engineering her way to Financial Independence Retire Early- FIRE. Susana is doing this by investing smarter, not harder, and has a unique perspective on asymmetric investments. She is a huge proponent of cryptos and blockchain, and she tells us about its potential. She is the host of her own excellent podcast called Say YES to FIRE: Financial Diaries of a Millennial.

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What's this episode about?My guest for this episode is Tristan Pelloux. He is passionate about all things fintech and is the founder of Fintechreview.net, a media website that has a mission to demystify the world of fintech.

In today's show, we get into some topics you may have heard of before but aren't really sure what they mean. After listening to this episode, you still may be confused about exactly what embedded, and decentralized finance is, but I think you'll have a better idea. Because I know I am still confused!

In this episode, we start talking about what fintech actually is because sometimes the term gets thrown around for things that don't actually qualify. Today, we talk about some of the biggest fintech themes, such as payments with companies like Stripe, and how the established banks attempt to stay relevant.

We also dive into how fintech companies are changing the way we bank and invest. We both seem to agree that some of the companies that have "democratized" investing, like Robinhood, have not been purely positives for the consumer.

We get into non-fungible tokens and how they are enabling a new way of owning assets digitally.

Episode Resources:Fintech Review

Why is NFT a Game Changer for the Ticketing Industry?

About the Podcast:The Invest Smarter Podcast is a show with a mission to bring valuable, insightful, and practical conversations to our audience. We want to enable people to invest smarter both in their portfolios and in themselves to live a healthier, wealthier life both now and in retirement. Host Dave DeWitt is a financial advisor with DeWitt Capital Management who is passionate about helping his clients invest smarter and plan for the best possible future.

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Keeping a global perspective on markets is a must if you want to be the best investor you can possibly be. Today's guest, Jonathan Baird CFA, knows all about this. He was able to see trouble from COVID-19 coming early because his global research kept him astutely aware of all the action regarding the virus before it hit our shores in the USA.Jonathan is the author of the monthly report called the Global Investment Letter. After reading a few of these myself, I knew I was in for a treat. He has a wonderful, impressive, and nuanced worldview. Check it out here.On today's show, we talk about: Jonathan's approach to investing What is causing inflation Why Jonathan believes inflation will be transitory (his view is subject to change!) Why the markets are driven by psychology His thoughts on the durability of "meme stocks" His thoughts on Robinhood His advice for pre-retireesAnd more!

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With a solo 401(k), you have so much more flexibility when it comes to your retirement account. This week we have solo 401(k) expert Daniel Blue on the show to give the lay of the land. One of the biggest pain points with your traditional 401(k) is the incredibly limited menu of investment selection. With a solo 401(k), your investment universe is virtually unlimited, allowing you to make your retirement dollars work for you the way you want them to.

A solo 401(k) can give you the flexibility you need to access your money without triggering a taxable event, invest in real estate, pay down debt, or fund a new business venture.

Listen now to learn and become a smarter investor.

Visit Daniels website at https://www.danielblue.me/

Visit his company website at https://www.yourquest.com/

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Mark Willis is a man on a mission to help you think differently about your money, your economy, and your future. He graduated with six figures of student loan debt and watched everybody lose their retirement savings and home equity in 2008. He knew that he needed to find a more predictable way to meet his financial objectives and those of his clients.

The Bank on Yourself™ that Mark employs has its critics, but from my research and conversations with others, I believe it can be a great strategy for the right person as a complement to all the important other parts of a well-rounded financial plan.

As co-host of the Not Your Average Financial Podcast™, he shares some of his strategies for investing in real estate, paying for college without going broke, and creating an income in retirement you won’t outlive. Mark works with people who want to grow their wealth in ways that are safe and predictable, to become their own source of financing, and to create tax-free income in retirement.

Check out Mark's podcast by clicking below

http://nyafinancialpodcast.com

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This is the first episode of our new midweek episodes, where we will be talking all about retirement planning and investing topics in a shorter format. All of these episodes will be best enjoyed on our YouTube channel, where graphics will accompany the audio. We hope you enjoy this new expansion of our Podcast/YouTube channel.

In this 15 minute podcast, you will learn what it is, why it's so surprising, theories as to why it has occurred, and reasons it may continue. In short, the age-old wisdom of more risk, more return hasn't particularly held up that well through history.

Please leave us a review if you have enjoyed our podcast!

Source of data: https://bmogamviewpoints.com/the-low-volatility-anomaly/

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Today I talk with Brian Thorp, the founder of WealthTender. Wealthtender is an online service that can help individuals identify and discover financial resources that they might require- whether it's a financial advisor, financial coach, educational podcasts, and more. We talk about the critical role human financial advisors can play for individuals, we talk about how finding the right advisor doesn't mean they have to be down the street from you, and much more.He also turns the tables on me and asks me about my philosophy when it comes to investing in individual stocks as part of a financial plan, which I think can make working with an advisor a lot more engaging and, yes, even fun.I encourage you to visit wealthtender.com to explore all the great things Brian is up to.

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On this week's show, we are back talking about investing and the markets. Our guest is Herb W. Morgan of Efficient Market Advisors. Herb is a sharp guy, and we get into several interesting and relevant topics. We dive into inflation, and the interesting market reaction to the latest Federal Reserve update to increase their inflation forecast. However, they still maintain that inflationary pressures are largely transitory. Herb believes the bifurcated market reaction, with value stocks all of a sudden rolling over and growth catching a big bid, is a sign of growth regaining a leadership position. We also discuss the Modern Monetary Theory (MMT) experiment and the risk that it ultimately leads to unknown but potentially dangerous unintended consequences. We talk about the US Dollar's role as the reserve currency for the world, Bitcoin's potential as a true currency, and much more. We have a wide-ranging and dynamic conversation that will help bring you up to speed in the markets. Herb has a fantastic podcast called Slaying Bulls & Bears, where every week, he breaks down the market in a methodical, data-driven, and compelling way. Listen to his podcast here. Enjoy this week's episode.

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Investing smarter can mean a lot of things. In the case of serial entrepreneur Rob Kessler, it means investing in yourself. After starting a screen printing and embroidery business, one thing led to another and he learned early that the best investment was in himself. It makes sense because he has a good track record! He also appreciates the importance of diversification, which is important for many entrepreneurs. In this show, he shares his story, gives valuable advice for entrepreneurs, and much more. He drops nuggets of knowledge throughout the interview, so give it a listen.

In this show we talk about:

The Million Dollar Collar and how he started the business
His yacht charter business
How his screen-printing business became a million-dollar business
Advice for entrepreneurs
Much more!

Check out his product here.

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Abbie Leibowitz pioneered an industry of heath advocacy when he co-founded Health Advocate. Listen to his story as he talks about his early career as a pediatrician and how he then found himself as the Chief Medical Officer of the health insurance behemoth Aetna. Abbie has an inspirational story to share, and we hope you enjoy it.

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Sean Adams is the CEO of Leveraged Life Management. His goal is to help the wealthy change their relationship with their money and become their own banker. Rather than try and explain it here, listen to the episode, and let me know what you think by emailing at investsmarterpod@gmail.com. The concept he introduces was new to me and it is probably new to you, so I hope you find this interview interesting and valuable. Note: The information in this podcast is for educational purposes only and should be viewed as specific investment advice.

Download Sean's free Ebook here

Visit his website here.

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Asset ALlocation is very important, and you don't want to get this wrong. Asset LOcation is also important, and this is often overlooked. Basically, different types of assets generally make more sense in particular account types. There are basically three account types: taxable, tax-deferred, and tax-exempt. We'll help you understand what belongs in what account and why. Enjoy the show, and keep Investing Smarter!Want to make sure your assets are properly located? Get a free retirement assessment at www.dewittcm.com/retirement-assessmentNote: The information in this podcast is for educational purposes only is not specific advice. Consult with a financial advisor or accountant with specific questions. Drop us a line at InvestSmarterPod@gmail.com or visit us at www.dewittcm.com/contact with questions or comments.

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Today we talk with Ted Peters. Who is Ted Peters? He started two successful banks from scratch. He ran Bryn Mawr Trust for 14 successful years. He has worked with Bed Bernanke and Janet Yellen. And now he runs a unique and exciting hedge fund with the top bank analyst in the country. This is his story. Go to the Invest Smarter Podcast page for full show notes.

Email at investsmarterpod@gmail.com with questions for the show.

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In this week's episode, we tackle inherited IRAs.

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Welcome to the Invest Smarter podcast. On this show, we aim to leave you a smarter investor by the end of every episode. We will simplify investing, provide actionable ideas, and discuss timeless investing wisdom.

In this episode, we talk about whether or not you should invest when the market is at highs. Just thinking about whether or not to invest when the market is at highs means you are engaging in market timing, and we know throughout history that humans are simply not good at timing markets. Markets are incredibly complex, and every transaction has a seller and buyer, and both are humans, or algorithms designed by humans, and humans are emotional and vulnerable to irrational decision making.

We discuss statistics to dispel the notion that investing highs is a poor idea.

Articles Discussed:

Should I Invest When The Market Is High? Dispelling The Buy Low, Sell High Myth

Investors Reacted to Market Crisis in Unprecedented Fashion

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In this week's show we cover:

Biden's proposed taxes
Risk of retiring at a market peak
Dogecoin and Reddit
Investing in what you understand- Peter Lynch
Passive investing shortcomings
Bill Miller's Q1 market letter
Housing boom!

Stories Covered:

Biden has pledged to tax the rich — but precisely how will he do that? Experts consider his options
Study Shows Repealing Stepped-Up Basis Would Damage the Economy
Retiring soon? Why the popular 4% withdrawal rule may be a bad idea
Dogecoin, Elon Musk—And The Latest Reddit Mania
The Atlantic: The Autopilot Economy
Bill Miller 1Q 2021 Market Letter
US Housing Market Is Nearly 4 Million Homes Short of Buyer Demand - WSJ
America Is Short of Home Builders as Well as Homes

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We are very excited to introduce our first guest to the podcast. Julian Krinsky is the founder of the Julian Krinsky School of tennis, Julian Krinsky Camps and Programs, and The Julian Krinsky Business School, and more. He left a comfortable life in South Africa to move to the USA in 1977 with just 1,200 dollars. He started giving tennis lessons on Dave Sr.s childhood backyard tennis court, and by 2019 he has reached 4,000 to 5,000 kids, half of whom were from overseas. Oh, did I mention he played in Wimbledon and the French Open? He's loaded with an abundance of life lessons and tennis tips, and we think you'll enjoy it. Here our conversation with Julian Krinsky.

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In this week's show, we cover a whole range of topics from the Archegos family office blowout, Jamie Dimon's shareholder letter, China investing in Africa, the housing boom, value's mean reversion potential, and more.Please share our podcast! We are eager to grow and need your support. Thanks!Topics Covered: Archegos Jamie Dimon The Housing Boom Reasons to be Optimistic The Fed money printing accounting change Why people die with money in the bank Government debt vs cost S&P 500 leadership changes over the decades Value stocks mean reversion potential Stock ownership trends Home equity loansStories Mentioned:Credit Suisse explainer Archegos Capital Jamie Dimon Shareholder LetterNeed a Mortgage Loan? Good Luck. Lenders Are Tightening Standards.Here Are 17 Reasons to Let The Economic Optimism BeginThe Fed Isn’t Printing As Much Money As You ThinkHere’s Why So Many People Intend to Die With Money in the BankCelebrating 64 Years of the S&P 500 – Indexology® Blog | S&P Dow Jones Indices

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Are Growth Stocks Dead?

Have you heard the saying, "if it's in the news, then it's in the stock?" If you have watched CNBC recently, you would constantly hear the narrative that value stocks are back and growth stocks are done. Meanwhile, value stocks are already up significantly from their lows, and growth stocks are already down significantly. While I am not suggesting that this dynamic won't continue, I am suggesting that generally speaking, by the time an idea becomes mainstream, it is frequently too late. And the consequences for the average investor are often poor decision-making. Let's look at an example.

In growth's corner, we have the Ark Innovation ETF (ARKK). This represents the highest-flying tech stocks over the past fifteen months. In value's corner, let's go with the airlines and energy, two of the harder-hit industries from COVID. We will use the U.S. Global Jets ETF (JETS) and the SPDR Energy Select ETF (XLE).

Since November, ARKK is up 34%. Not bad, eh? However, JETS is up 59%, and XLE is up a whopping 75%! Looking more recently, since ARKK peaked in February, it is down a sizeable 22%. The others? JETS is up 19%, and XLE is up 14%. All this means is that if an investor is making their investment decisions based on what CNBC says, you will often be buying into consensus trades, which usually means you're buying high. Why is XLE a better buy today now that it's up 75% since November? Is it less risky today than it was then? Throughout the history of the markets, investors as a whole have proven time and time again to be bad at timing, buying when the risk is high and selling when the risk is lowest.

So are growth stocks dead? Well, relative to value, they've been dying slowly for months now. But by definition, growth stocks are growing, so how can they be dead?

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In this week's episode, we explore a study that shows that target-date funds in your 401K can actually hurt your performance over time. We look into how custom indexing is making ground, and how it has advantages to ETFs from a cost and personalization standpoint. We talk about how stock correlations (how stocks move together) have been increasing dramatically over the last 30 years. Part of this is passive investing's fault.This lends more support to the idea of a new age of stock picking (or custom indexing!). But we point out that just cause it's custom doesn't make it any better than passive. Ideally, you can blend optimization with personalization to improve long-term outcomes.We also hassle Tesla and the EV industry as well as Bitcoin and its environmental concerns. We wrap up with a chat about SPACs.

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This week's episode was a blast to record. We start off by covering a great piece from Morningstar about the challenges Cathie Wood and her Ark funds are likely to face now that her funds are enormous. We chat about the Fed and what Jerome Powell said to make markets happy. We discuss a great 2020 and 2021 outlook from legend Howard Marks from Oaktree Capital Management. We discuss some interesting Bitcoin facts, particularly as it relates to environmental concerns. We also look at how there is truth to the idea that investing in stocks a monkey picks by throwing darts at a stock dartboard is potentially a better option than a cap-weighted index fund. And we wrap up trying to figure out NFTs and Metaverses! Enjoy!

Articles Discussed:

Morningstar: No Room on the Ark?

Here’s what changed in the new Fed statement

Fed sees the stronger economy and higher inflation, but no rate hikes

Howard Marks 2020 Review

The Nasdaq Is Acting Strange. What That Means for Stocks.

The Flaws of Capital Asset Pricing Model (CAPM)

BofA Global Research: 10 Surprising Facts About Bitcoin - The Big Picture

Commodities Supercycle Looks Like a Stretch - WSJ

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In this week's show, we go over the stimulus package that was just passed and what it means. Of particular interest is the guaranteed income over the course of the next year to families with children. Without a doubt, this is something that Democrats will wish to make permanent. We also talk about inflation, as it is on a lot of people's minds. We continue to err on the side of it not being a worst-case scenario. A lot of the inflationary pressures are transitory. We discuss how some parts of the economy actually inflated during the pandemic and are now going into a more deflationary period. For instance: used cars! We wrap up this talk with a discussion over the massive opportunity in the emerging markets that will unfold over the coming decades. Articles Mentioned:Inflation Isn't Happening Yet, and It Likely Won'tGundlach: Looking Backwards

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What a week! One of my favorite stocks, Digital Turbine (APPS), hit a 52 week high on Tuesday on great news and proceeded to drop 35% in the Span of 72 hours! This is a microcosm of what is happening across the board in stocks that have been the biggest winners. The media is labeling the stocks taking hits as non-profitable tech stocks, but from what I can see, it is anything that has been a big winner, profitable or not. If you are waking up with a feeling of confusion and uncertainty, take a listen to this podcast. This is not a time to panic. We are seeing a run-of-the-mill correction in stocks that have been absolute beasts- so naturally, the correction is a bit deeper and more painful. It's time to stay calm and keep our eyes downfield.

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In this week's episode, we chat about how rates rising have rattled the market a little bit. We discuss the mechanics of why this happens and tie it to the big picture of inflation expectations. We wonder which sectors would benefit from more inflation and what will happen to the high-flying tech stocks. There has been a divergence even within technology stocks, and some may be more vulnerable than others.

We also talk about the expectation gap that exists with individuals expecting large returns on their portfolio and list capital preservation as a top priority. We discuss the importance of having a plan and knowing what you actually need in terms of return to make your plan work. You do not always need excess returns to make your vision a reality!

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David DeWitt