Weekend Reading Roundup

Weekend Reading Roundup

Sorry for being so late with the links this week – had a weekend away thankfully with little internet connection.  Didn’t want to skip this week though since there are so many great ones this week.  Enjoy!

All In or All Out? (pragcap) – “But I want to hone in on Bogle’s point because it’s an important one. A lot of people will tend to look at valuation metrics or other indicators and feel the need to be “all in” or “all out” of the market. This is the gambler’s approach to investing.”

Good Advice vs Effective Advice (awealthofcommonsense) – “Telling a friend or family member who is overweight to eat better and workout periodically is good advice. But for most people, that good advice will not be effective. They already know what they should do.”

According to Warren Buffett’s Own Methods Stocks Are Not At All ‘Fairly Priced Relative To Interest Rates’ (thefelderreport) – “As Mr. Buffett has famously said, “the price you pay determines your rate of return.” Because investors are paying one of the highest prices in history, according to this measure, they are likely to experience some of the lowest future returns on record. In fact, this measure now suggests they will experience an average annual loss of 2.8% per year over the coming decade.”

And the Crowd Goes Wild (ofdollarsanddata) – “When you are seeing multiple indicators at their extremes, you should take notice. I am not implying that you should change your actions, but realize that this is the same herd behavior that has dominated markets for centuries. Why is this important? Because when you can recognize that the crowd is mad, you can prevent yourself from following along and making large investment errors (i.e. selling during a panic).”

Why We Should All Stop Saying “I know exactly how you feel” (ideas.ted) – This article also gives you an alternative phrase you can say.

The Shallow Benefit of Deep Liquidity (collaborativefund) – “Giving up some liquidity not only offers additional returns; it guards against investors’ temptation to misbehave, which is the single biggest problem in public markets.”

Does Equal Weighting Lead to More Consistent Returns (fortunefinancialadvisors) – “Even though the equal-weighted index generated positive results more consistently with a narrower range of outcomes, the results are not significantly different between the two distributions to conclude too much from them.”

Why Are European Stocks Chronically Cheaper Than US Stocks? (thereformedbroker) “Josh here – right about now is when someone (usually me) will blurt out “IT’S BECAUSE WE HAVE MORE TECHNOLOGY STOCKS” but Deutsche demonstrates that the premium is still there when you take out tech (Apple, Google) as well as consumer discretionary (AMZN).”

From One Percent Decisions:

Portfolio Second Opinions Are Useless – “That is that the shortcomings they’ll inevitably “discover” will be totally dependent upon the advisor’s investment philosophy.”

Six Questions to Ask a Financial Advisor – “So, to keep this as simple as possible, I’ve put together a concise list of six questions you should ask your current advisor or prospective advisor if you’re in the process of interviewing a few.”

Financial Bubble Predictions – 3rd Qtr 2017 – “Since bubbles are always being predicted, and I am an optimist (or realist based on historical accounts), I thought it would be a wise endeavor to put together a quarterly piece on current bubble predictions.”

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