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From the 1950s onwards, the foundations of investment consulting were laid, as pension funds and institutional investors sought professional guidance on asset allocation and portfolio management. This was enhanced in the 1960s & 70s by the introduction of Modern Portfolio Theory by Harry Markowitz and the Capital Asset Pricing Model (CAPM) by William Sharpe. Today, the investment consulting industry has become a vast cog in the investing machinery, increasingly extending its reach from institutional through to individual investors. In this interview, Michael Manning, CEO of NEPC, with nearly $2 trillion under advice, sits at the epicenter of these developments. We learn how the world of consulting has developed, the reasons behind its growth, how it has adapted, and its move into the individual market. Michael then discusses the investment terrain. Is the US peaking relatively, and what might that mean? How to assess passive versus active? Is private equity due to disappoint? And how to assess the risk/returns of private debt, infrastructure and real estate. The Money Maze Podcast is kindly sponsored by Schroders, IFM Investors, World Gold Council and LSEG. Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube
Progressive's Jeremy McKeown recently spoke with David Dredge of Convex Strategies in Singapore. David is widely regarded for his deep understanding of risk and for delivering his insights in a highly engaging and entertaining manner. He dedicates his time to analysing sources of risk and developing strategies designed to mitigate their impact. His approach involves embracing convexity—purchasing pockets of inexpensive volatility as a form of insurance against adverse outcomes in uncertain environments. When should investors adopt this strategy? According to David, the answer is simple: always—just like insuring a house. David holds strong and often contrarian views that challenge the foundational assumptions of Modern Portfolio Theory, which he refers to as "Sharpe World." In his view, this framework wrongly equates risk with volatility. He brings these ideas to life through vivid anecdotes and illustrative examples that highlight the risks investors unknowingly take in markets shaped by Sharpe World principles and operated by what he calls "Rational Accounting Man."
When financial stress tore Eric Nyquist's family apart during the mid-2000s, it sparked his lifelong mission to understand how to both grow and protect wealth. Now leading fund sales and distribution at Howard Capital Management, Eric shares how personal experience shaped his investment philosophy and why protecting capital during market downturns is just as crucial as capturing upside.The cornerstone of Howard Capital's approach is their proprietary HCM Byline – a trend-following indicator that serves as a market barometer, signaling whether markets are healthy or deteriorating. Developed by founder Vance Howard in the mid-90s after experiencing the 1987 market crash firsthand, this systematic methodology removes emotional decision-making from investing, addressing what Eric identifies as the number one reason investors underperform: behavioral finance pitfalls.Eric challenges conventional investment wisdom throughout our conversation, particularly questioning Modern Portfolio Theory's assumptions about rational investor behavior and its equation of volatility with risk. "Volatility works on a two-way street," he explains. "There's as much upside volatility as downside, and if you can't capture upside volatility, you're never going to make money in the market."For advisors constructing portfolios, Eric suggests thinking in thirds – allocating to tactical growth strategies like Howard Capital's ETFs, actively managed fixed income, and passive strategies to keep costs down. Their ETFs (LGH and QQH) offer tactical versions of major indexes designed not to avoid every market hiccup, but to protect investors from the devastating 30-50% declines that can derail financial plans, especially for those nearing retirement.Whether you're concerned about current market valuations, wondering about the persistence of large-cap dominance, or simply looking for ways to enhance your investment approach, this conversation offers valuable perspective on navigating market cycles with confidence. Visit howardcm.com to learn more about their systematic approach to staying tactical in today's rapidly evolving markets.DISCLAIMER – PLEASE READ: This is a sponsored episode for which Lead-Lag Publishing, LLC has been paid a fee. Lead-Lag Publishing, LLC does not guarantee the accuracy or completeness of the information provided in the episode or make any representation as to its quality. All statements and expressions provided in this episode are the sole opinion of Howard Capital and Lead-Lag Publishing, LLC expressly disclaims any responsibility for action taken in connection with the information provided in the discussion. The content in this program is for informational purposes only. You should not construe any information or other material as investment, financial, tax, or other advice. The views expressed by the participants are solely their own. A participant may have taken or recommended any investment position discussed, but may close such position or alter its recommendation at any time without notice. Nothing contained in this program constitutes a solicitation, recommendation, endorseme Sign up to The Lead-Lag Report on Substack and get 30% off the annual subscription today by visiting http://theleadlag.report/leadlaglive. Foodies unite…with HowUdish!It's social media with a secret sauce: FOOD! The world's first network for food enthusiasts. HowUdish connects foodies across the world!Share kitchen tips and recipe hacks. Discover hidden gem food joints and street food. Find foodies like you, connect, chat and organize meet-ups!HowUdish makes it simple to connect through food anywhere in the world.So, how do YOU dish? Download HowUdish on the Apple App Store today:
In this episode we answer emails from Kyle, Adam, and Steve. We discuss equal weight vs. cap weighted funds and the fallacy that one fund stock portfolios are optimal, a variable withdrawal strategy plan, and what kinds of portfolios work best for which types of people and purposes.And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.Additional Links: Father McKenna Donation Page: Donate - Father McKenna CenterShannon's Demon Article: Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio ChartsPortfolio Charts Retirement Spending Calculator: Retirement Spending – Portfolio Charts2024 Morningstar Report Analyzing Variable Withdrawal Strategies: State_of_Retirement_Income_2024.pdfSwedroe Factor Investing Book: Book Review: Your Complete Guide to Factor-Based Investing | CFA Institute Enterprising InvestorMerriman Best In Class ETFs: Best-in-Class ETF Recommendations | Merriman Financial Education FoundationAmusing Unedited AI-Bot Summary:Step into the world of Risk Parity Radio, where we unravel the mysteries of asset allocations and personal finance. Ever wonder how equal weight differs from cap-weighted index ETFs? We promise to guide you through this intriguing comparison, emphasizing the importance of utilizing multiple funds for a comprehensive market strategy. Together with my co-host Mary, we explore how concepts like Modern Portfolio Theory and Shannon's Demon can elevate your portfolio's performance beyond a single-fund approach. And, in a nod to community spirit, we encourage our listeners to support the Father McKenna Center, weaving philanthropy into our financial discourse.This episode goes beyond the basics, challenging the notion that one-size-fits-all in the world of investing. We dissect the benefits of combining growth and value funds, and highlight the risk management advantages of cap-weighted ETFs. Our heartfelt retirement segment touches on a listener's email about crafting a sustainable portfolio through variable withdrawal strategies. We navigate the nuances of personal inflation adjustments, equipping you with the tools to fortify your financial future. Join us as we counter cognitive biases and fine-tune strategies to align investments with economic realities, ensuring that your financial journey is as robust as it is rewarding.Support the show
In this episode, we question the limits of modern portfolio theory with Jon Lukomnik, co-author of Moving Beyond Modern Portfolio Theory and credited by Forbes as a pioneer of modern corporate governance. We challenge a cornerstone of finance and whether it is fit for purpose in today's complex and interconnected world.
Joe Saul-Sehy of Stacking Benjamins joins the show to discuss financial planning, overcoming debt, and the importance of surrounding yourself with the right people. Joe shares his personal journey of financial mismanagement as a young financial planner, the principles behind the efficient frontier, and his thoughts on target date funds. Tune in to learn and laugh with Joe, Bill, and Jackie.
#526: Recorded LIVE on stage at the Morningstar Conference in Chicago! We chat with behavioral finance professor Meir Statman. He breaks down the differences between standard finance and behavioral finance, making it clear that understanding human behavior is an essential part of investing. Statman starts by explaining that standard finance assumes people are rational. They make decisions purely based on logic and aim to maximize wealth. However, behavioral finance sees people as normal, not always rational. We often act on emotions and cognitive shortcuts. For instance, people might prefer receiving dividends over selling shares, even if both result in the same financial gain. This is because dividends feel like income, while selling shares feels like dipping into savings. He uses a great metaphor to explain how investors view their portfolios. Think of a dinner plate: behavioral investors like their investments separated, like mashed potatoes on one side, vegetables on another, and steak in the middle. Rational investors don't care if it's all blended together because they only focus on the total nutrients. This shows that normal investors have different needs and want to balance safety with growth. Statman talks about the importance of diversification. He recalls a lunch with Harry Markowitz, the father of Modern Portfolio Theory, who supported the idea of having a mix of safe and risky investments. Markowitz himself had municipal bonds to avoid poverty and stocks to grow wealth. Diversifying helps investors manage risk and meet both their safety and growth needs. We then dive into how people manage money across their life cycle. Statman points out that young people know they need to save but are tempted to spend. They often control this urge by putting money into retirement accounts like 401(k)s. As people get older, they become so good at saving that they sometimes forget to spend and enjoy their money. Statman gives a funny example of his mother-in-law, who refused to replace an old sofa because she didn't want to dip into her savings. Statman also touches on asset pricing and market efficiency. He explains that while traditional finance focuses solely on risk, behavioral finance considers other factors like social responsibility. Some investors are willing to accept lower returns to stay true to their values. Additionally, he argues that market prices do not always reflect true value, and it's hard to predict when they will. Towards the end, we discuss the broader aspects of wellbeing. Statman emphasizes that financial wellbeing is just one part of a happy life. Family, health, work, and community are also crucial. He believes financial advisors should help clients achieve overall life wellbeing, not just financial success. For more information, visit the show notes at https://affordanything.com/episode526 Learn more about your ad choices. Visit podcastchoices.com/adchoices
Steve Selengut is a financial advisor with 40+ experience and the author of Retirement Money Secrets. In this episode we dive into the little-known world of closed-end funds for generating passive income (often returns of 10% or more!)
In this episode, Sev talks about many of major areas within the Investments module that could be tested on the CFP® exam. Topics such as stocks, bonds, options, mutual funds and ETFs are discussed, along with their tax implications. Methods of measuring a portfolio manager's investment performance such as the Treynor ratio and Jensen's alpha are discussed, along with Modern Portfolio Theory, the Capital Asset Pricing Model, and many other related topics. ____________________________________________ About Sev Meneshian
Welcome back to another insightful episode of the Canadian Investor Podcast with Simon and Braden. In this week's episode, our hosts delve into the intricacies of Modern Portfolio Theory (MPT), exploring its relevance in today's dynamic investment landscape. They unravel the complexities of businesses navigating competing incentives among stakeholders, shedding light on key strategies for sustainable growth and profitability. As the conversation evolves, Simon and Braden shift their focus to a hot topic in the investment world: Spot Bitcoin ETFs. With seven weeks since their launch, they analyze the performance of these ETFs, dissecting fund flows and assets under management to determine whether they've lived up to the hype or fallen short of expectations. Randy Cohen Blog on 60/40 performance The Block Bitcoin Flow Charts Check out our portfolio by going to Jointci.com Our Website Canadian Investor Podcast Network Twitter: @cdn_investing Simon's twitter: @Fiat_Iceberg Braden's twitter: @BradoCapital Dan's Twitter: @stocktrades_ca Want to learn more about Real Estate Investing? Check out the Canadian Real Estate Investor Podcast! Apple Podcast - The Canadian Real Estate Investor Spotify - The Canadian Real Estate Investor Sign up for Finchat.io for free to get easy access to global stock coverage and powerful AI investing tools. Register for EQ Bank, the seamless digital banking experience with better rates and no nonsense.See omnystudio.com/listener for privacy information.
How can the intertwining of real estate and digital assets like cryptocurrency reshape our approach to investment and wealth management? In this insightful episode, Suja engages with David Doss, a seasoned real estate investor and expert in blockchain and cryptocurrency. David delves into the dynamic interplay between traditional investment avenues like real estate and emerging digital assets. He offers a nuanced perspective on portfolio diversification, the evolving landscape of asset classes, and the impact of technology on investment strategies. Let's dive in! [00:01 - 07:52] Introduction to David Doss and His Journey David's background and his interest in market interactions and alternative assets Real estate and crypto differ in tangibility and market movement speed Diversification across various asset classes is crucial for risk management [07:53 - 14:54] Investment Portfolio Allocation and Modern Portfolio Theory Portfolio allocation in crypto should be based on individual scenarios and risk tolerance Modern Portfolio Theory helps in maximizing expected returns for a given level of risk Diversification across traditional and alternative assets, including crypto, is increasingly favored [14:55 - 20:40] Navigating the Diverse Landscape of Cryptocurrencies The crypto market is vast, with over 23,000 different cryptocurrencies Diversification within the crypto asset class is as crucial as in other investment classes Analyzing market capitalization, volume, and use cases can guide cryptocurrency investment choices [20:41 - 27:02] Decentralization, Blockchain, and Environmental Concerns Decentralization extends beyond cryptocurrencies to broader blockchain applications Blockchain technology has potential in various sectors, including real estate Environmental concerns regarding crypto mining are complex but evolving towards more sustainable solutions Quotes: "Understanding the unique characteristics of each asset class can inform better investment decisions." - David Doss "Diversification is not just about spreading risk, it's about seizing opportunity in various markets." - David Doss "Blockchain is much more than cryptocurrencies; it's a foundation for future technological revolutions." - David Doss Connect with David: Website: https://ckc.fund/media-kit.html LinkedIn: David Doss WANT TO LEARN MORE? Connect with me through LinkedIn. Or send me an email at sujata@luxe-cap.com Visit my website, www.luxe-cap.com, or my YouTube channel. Thanks for tuning in! If you liked my show, LEAVE A 5-STAR REVIEW, like, and subscribe!
While the creator of modern portfolio theory was awarded a Nobel Prize, that doesn't mean the theory isn't flawed. In fact, it explains very little about investments. Original Article: Modern Portfolio Theory Is Mistaken: Diversification Is Not Investment
While the creator of modern portfolio theory was awarded a Nobel Prize, that doesn't mean the theory isn't flawed. In fact, it explains very little about investments. Original Article: Modern Portfolio Theory Is Mistaken: Diversification Is Not Investment
While the creator of modern portfolio theory was awarded a Nobel Prize, that doesn't mean the theory isn't flawed. In fact, it explains very little about investments. Original Article: Modern Portfolio Theory Is Mistaken: Diversification Is Not Investment
While the creator of modern portfolio theory was awarded a Nobel Prize, that doesn't mean the theory isn't flawed. In fact, it explains very little about investments. Narrated by Millian Quinteros.
While the creator of modern portfolio theory was awarded a Nobel Prize, that doesn't mean the theory isn't flawed. In fact, it explains very little about investments. Original Article: Modern Portfolio Theory Is Mistaken: Diversification Is Not Investment
While the creator of modern portfolio theory was awarded a Nobel Prize, that doesn't mean the theory isn't flawed. In fact, it explains very little about investments. Original Article: Modern Portfolio Theory Is Mistaken: Diversification Is Not Investment
Imagine using AI to guide your investment decisions. One startup from Korea has developed an AI-based trading interface that does that, by tapping on the science behind Nobel Prize winning modern portfolio theory and probabilistic deep learning models. On this episode of Morning Shot, Sam Kim, CEO of Alchemi lab - one of the exhibitors at the recent Singapore Fintech Festival - shares more about his AI-based trading platform, Zolbo. Presented by: Ryan Huang Produced and edited by: Yeo Kai Ting (ykaiting@sph.com.sg)See omnystudio.com/listener for privacy information.
In this episode we answer emails from Justin of Risk Parity Chronicles and Chris. We discuss Justin's new blogpost and a new fund that mixes stocks and managed futures, RSST, and follow up on Episode 288 with some useful references from Chris.And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio. We have a rebalancing of the Levered Golden Ratio portfolio.Additional links:Justin's Blog Post: Quick Musings on RSST (riskparitychronicles.com)Corey Hoffstein's Return Stacked Portfolio: Show Us Your Portfolio: Corey Hoffstein - YouTubeAndrew Beer Interview on Forward Guidance: How Hedge Funds Take Too Much Of Investors' Money (Way Too Much) | Andrew Beer - YouTubeWikipedia Article about Modern Portfolio Theory: Modern portfolio theory - Wikipedia MIT Opencourseware for Finance and MPT: Ses 14: Portfolio Theory II - YouTube Khan Academy Video on Normal Distributions: Introduction to the normal distribution | Probability and Statistics | Khan Academy - YouTube Normal Distribution Calculator: Normal Distribution Applet/Calculator (uiowa.edu)Walk4McKenna: Walk4McKenna - Father McKenna CenterSupport the show
Episode Notes Bruce and Jeff connect with Kevin T. Gannon, CEO of RA Stanger Investment Bank, to talk about nontraded REITS, their history, all of the current nuances when working with them, and their advantages and disadvantages. Related article: https://www.investmentnews.com/nontraded-reit-math-bedeviling-230132 Guest Bio: Mr. Gannon is chairman and CEO of Stanger. Mr. Gannon joined Stanger in 1983 and has been the lead or co-lead investment banker on more than $75 billion of assignments involving real estate assets and securities. Mr. Gannon is a frequent speaker at industry events sponsored by the Institute for Portfolio Alternatives (IPA) and ADISA and is frequently quoted in the Wall Street Journal, SNL, DI Wire and InvestmentNews. Mr. Gannon is a recognized expert on real estate securities and valuation matters having appeared as an expert in numerous forums including: U.S. Tax Court; U.S. Bankruptcy Court; Delaware Chancery Court; Federal Court; several State Courts; SEC Administrative Court; and arbitration forums. Prior to joining Stanger in 1983, Mr. Gannon was a Manager with Deloitte Haskins & Sells, an international accounting firm. Mr. Gannon is a graduate of Rutgers University (Phi Beta Kappa, 1978) with a BA in Economics and Accounting. Mr. Gannon is a certified public accountant and member of the American Institute of Certified Public Accountants and a General Securities Principal. Founded in 2016, Helios Quantitative Research was created to equip Financial Advisors with new and relevant tools that drastically improve their client's asset management experience, expand their firm's margins, and challenge the old-guard legacy providers as well as the emerging robos of Silicon Valley. We believe that the majority of existing services available to Financial Advisors lack innovation, are too expensive, and enable commoditization in the wealth management industry. Therefore, we created our own service category – the insourced CIO. Our unique team of skilled and experienced individuals partners with financial advisors across the globe to create, implement, monitor, and communicate quantitative investment strategies that challenge Modern Portfolio Theory and seek to remove as much emotion as possible from investing. In a short time, we have grown to influence over 800 Financial Advisors who collectively manage over $30 billion.
Episode Notes Jeff speaks with Toussaint Bailey, Founder and CEO of Uplifting Capital, about his creative ventures to shift the landscape of impact investing. Guest Bio: Toussaint Bailey is Founder and CEO of Uplifting Capital. Toussaint aims to align investments with efforts to uplift people, the planet and the economy. He draws on deep experience as a leader in private wealth and a trailblazer in impact engagement. Founded in 2016, Helios Quantitative Research was created to equip Financial Advisors with new and relevant tools that drastically improve their client's asset management experience, expand their firm's margins, and challenge the old-guard legacy providers as well as the emerging robos of Silicon Valley. We believe that the majority of existing services available to Financial Advisors lack innovation, are too expensive, and enable commoditization in the wealth management industry. Therefore, we created our own service category – the insourced CIO. Our unique team of skilled and experienced individuals partners with financial advisors across the globe to create, implement, monitor, and communicate quantitative investment strategies that challenge Modern Portfolio Theory and seek to remove as much emotion as possible from investing. In a short time, we have grown to influence over 800 Financial Advisors who collectively manage over $30 billion.
Jeff takes the pod solo this week with his guest Gary Zimmerman, Founder of MaxMyInterest.com. Gary explains how MaxMyInterest was born from his experience during the financial crisis. Jeff and Gary discuss Gary's thoughts on why inflation is here to stay and may well be an indicator of future social and political instability, and how a recession may be our only hope of quelling inflation. Guest Bio: Gary Zimmerman is the managing partner of Six Trees Capital LLC and Founder of MaxMyInterest.com. Previously, Zimmerman was an investment banker at Citigroup, where he was a managing director and global head of strategic solutions for sovereign wealth funds, responsible for advising these funds on their direct investment activities globally. In that role, he spent considerable time in Europe, the Middle East and Asia, advising funds with more than $5 trillion of assets under management. Founded in 2016, Helios Quantitative Research was created to equip Financial Advisors with new and relevant tools that drastically improve their client's asset management experience, expand their firm's margins, and challenge the old-guard legacy providers as well as the emerging robos of Silicon Valley. We believe that the majority of existing services available to Financial Advisors lack innovation, are too expensive, and enable commoditization in the wealth management industry. Therefore, we created our own service category – the insourced CIO. Our unique team of skilled and experienced individuals partners with financial advisors across the globe to create, implement, monitor, and communicate quantitative investment strategies that challenge Modern Portfolio Theory and seek to remove as much emotion as possible from investing. In a short time, we have grown to influence over 800 Financial Advisors who collectively manage over $30 billion.
Episode Notes Jeff and Bruce talk to Lorenzo Esparza, chief executive and founding principal at Manhattan West, about his preference for alternative investments, especially when working with the firm's high-profile clients, including entertainers and athletes. Guest Bio: Lorenzo Esparza is the chief executive officer and founding principal at Manhattan West, where he leveraged his legal, corporate and financial experience to form the modern version of an investment firm. Founded in 2016, Helios Quantitative Research was created to equip Financial Advisors with new and relevant tools that drastically improve their client's asset management experience, expand their firm's margins, and challenge the old-guard legacy providers as well as the emerging robos of Silicon Valley. We believe that the majority of existing services available to Financial Advisors lack innovation, are too expensive, and enable commoditization in the wealth management industry. Therefore, we created our own service category – the insourced CIO. Our unique team of skilled and experienced individuals partners with financial advisors across the globe to create, implement, monitor, and communicate quantitative investment strategies that challenge Modern Portfolio Theory and seek to remove as much emotion as possible from investing. In a short time, we have grown to influence over 800 Financial Advisors who collectively manage over $30 billion.
Hi everyone. We're taking the week off for the 4th of July holiday, but we wanted to use this week's episode to honor Nobel Prize-winning economist Harry Markowitz, who recently passed away at the age of 95. Professor Markowitz is a giant of finance, someone who put diversification and Modern Portfolio Theory on the map, with his research transforming the way we allocate and invest our assets. While we didn't have the opportunity to interview Professor Markowitz for the podcast, we were able to chat recently with someone who had interviewed him: author and financial researcher Dr. Andrew Lo. Dr. Lo recently published a book titled “In Pursuit of the Perfect Portfolio,” in which he profiled some of the leading figures in academic research and finance. None stood taller than Professor Markowitz, whom Dr. Lo discusses at length in this interview we aired in February of 2022. We think you'll enjoy it. Thanks so much for listening and see you in a week. Have a happy holiday.Our guest this week is Dr. Andrew Lo. Dr. Lo is the Charles E. & Susan T. Harris Professor, a professor of finance, and the director of the Laboratory for Financial Engineering at the MIT Sloan School of Management. His current research spans five areas, including evolutionary models of investor behavior and adaptive markets, systemic risk, and financial regulation, among others. Dr. Lo has published extensively in academic journals and authored a number of books including In Pursuit of the Perfect Portfolio, which he cowrote with Stephen Foerster. He has received numerous awards for his work and contributions to modern finance research throughout his career. He holds a bachelor's in economics from Yale University and an AM and Ph.D. in economics from Harvard University.BackgroundIn Pursuit of the Perfect Portfolio: The Stories, Voices, and Key Insights of the Pioneers Who Shaped the Way We Invest, by Andrew W. Lo and Stephen R. FoersterAdaptive Markets: Financial Evolution at the Speed of Thought, by Andrew W. LoHistory"Thirty Maidens of Geneva," the Tontine Coffee-House, thetch.blog.com, Aug. 5, 2019."Why 18th Century Swiss Bankers Bet on the Lives of Young Girls," by Stephen Foerster, sfoerster-5338.medium.com, Sept. 2, 2021.William F. Sharpe"Keynes the Stock Market Investor: A Quantitative Analysis," by David Chambers, Elroy Dimson, and Justin Foo, papers.ssrn.com, Sept. 26, 2013.Eugene F. Fama"Algorithmic Models of Investor Behavior," by Andrew Lo and Alexander Remorov, eqderivatives.com, 2021."In Pursuit of the Perfect Portfolio: Eugene Fama," Interview with Andrew Lo and Eugene Fama, youtube.com, Dec. 15, 2016."Why Artificial Intelligence May Not Be as Useful or as Challenging as Artificial Stupidity," by Andrew Lo, hdsr.mitpress.mit.edu, July 1, 2019.Charles D. Ellis"Charley Ellis: Why Active Investing Is Still a Loser's Game," The Long View podcast, Morningstar.com, May 27, 2020.Other"7 Principles to Help You Create Your Perfect Portfolio," by Robert Powell, marketwatch.com, Nov. 10, 2021.
Last week, Harry Markowitz died at the age of 95. He was a Nobel prize winner and the brains behind a famous economic (mathematical?) theory that explains how to diversify one's investment portfolio. So in today's episode for 28th June 2023, we thought we'd take a look back at his famous theory and see whether it still holds good today.
Eliminating Risk While Growing Your Nest Egg Larry Kriesmer and Bernard Surovsky, Measured Risk Portfolios – The Sharkpreneur podcast with Seth Greene Episode 932 Larry Kriesmer and Bernard Surovsky Larry Kriesmer graduated from the University of Redlands as an English Major and then began his career in financial services as a registered rep and insurance advisor. In that role, he quickly passed the General Securities Representative Series 7 exam and subsequently passed the Series 24 Registered Principal exam and holds the designations of Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) from the Society of Financial Service Professionals. He is a member of the National Association of Insurance and Financial Advisors (NAIFA) and the Society of Financial Service Professionals (FSP). Frustrated by his observations with Modern Portfolio Theory and exposure to potential losses even with diversified portfolio positions, Larry Kriesmer, CLU, ChFC set about finding a portfolio risk management solution over which he could feel more in control. Finding nothing that fit his objective, he drew on his early training as an insurance professional, and along with his business partner, Bernard Surovsky, formed Measured Risk Portfolios, a registered investment advisor, in 2007. Initially deployed on a few select clients, the strategy is now used by the majority of his personal clients and hundreds of accounts that are referred to the firm by outside advisors. Bernard Surovsky graduated from the University of Cape Town with a Bachelor of Science in Construction Management and Economics. He emigrated to the US in 1992 and passed the General Securities Representative Series 7 exam in 1996 and holds the designations of Certified Fund Specialist (CFS) from the Institute of Business & Finance. Frustrated with the results of Modern Portfolio Theory and the significant losses incurred in client accounts, he set about finding a more predictable solution to managing portfolio risk. Finding nothing that fit the need, he drew on his early training as an insurance professional, and along with his business partner, Larry Kriesmer, formed Measured Risk Portfolios, a registered investment advisor, in 2007. Initially deployed on a few select clients, the strategy is now used by the majority of his personal clients and hundreds of accounts that are referred to the firm by outside advisors. Listen to this informative Sharkpreneur episode with Larry Kriesmer and Bernard Surovsky about eliminating risk while growing your nest egg. Here are some of the beneficial topics covered on this week's show: - How the old way of doing things in financial services doesn't work during a crisis. - Why you must do something different to achieve a different outcome. - What an Index Annuity is and isn't and how they work. - Why a small allocation can control a large amount of capital and yield the desired return. - How softened portfolios still carry a tremendous risk for clients. Connect with Larry and Bernard: Guest Contact Info LinkedIn linkedin.com/company/measured-risk-portfolios Links Mentioned: measuredriskportfolios.com Learn more about your ad choices. Visit megaphone.fm/adchoices
Larry Kriesmer graduated from the University of Redlands as an English Major and then began his career in financial services as a registered rep and insurance advisor. In that role, he quickly passed the General Securities Representative Series 7 exam and subsequently passed the Series 24 Registered Principal exam and holds the designations of Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) from the Society of Financial Service Professionals. He is a member of the National Association of Insurance and Financial Advisors (NAIFA) and the Society of Financial Service Professionals (FSP). Frustrated by his observations with Modern Portfolio Theory and exposure to potential losses even with diversified portfolio positions, Larry Kriesmer, CLU, ChFC set about finding a portfolio risk management solution over which he could feel more in control. Finding nothing that fit his objective, he drew on his early training as an insurance professional, and along with his business partner, Bernard Surovsky, formed Measured Risk Portfolios, a registered investment advisor, in 2007. Initially deployed on a few select clients, the strategy is now used by the majority of his personal clients and hundreds of accounts that are referred to the firm by outside advisors. Bernard Surovsky graduated from the University of Cape Town with a Bachelor of Science in Construction Management and Economics. He emigrated to the US in 1992 and passed the General Securities Representative Series 7 exam in 1996 and holds the designations of Certified Fund Specialist (CFS) from the Institute of Business & Finance. Frustrated with the results of Modern Portfolio Theory and the significant losses incurred in client accounts, he set about finding a more predictable solution to managing portfolio risk. Finding nothing that fit the need, he drew on his early training as an insurance professional, and along with his business partner, Larry Kriesmer, formed Measured Risk Portfolios, a registered investment advisor, in 2007. Initially deployed on a few select clients, the strategy is now used by the majority of his personal clients and hundreds of accounts that are referred to the firm by outside advisors. Listen to this insightful RIA episode with Larry Kriesmer and Bernard Surovsky about eliminating risk while growing your nest egg. Here is what to expect on this week's show: - How the old way of doing things in financial services doesn't work during a crisis. - Why you must do something different to achieve a different outcome. - What an Index Annuity is and isn't and how they work. - Why a small allocation can control a large amount of capital and yield the desired return. - How softened portfolios still carry a tremendous risk for clients. Connect with Larry and Bernard: Links Mentioned: https://measuredriskportfolios.com/ LinkedIn http://linkedin.com/company/measured-risk-portfolios Learn more about your ad choices. Visit megaphone.fm/adchoices
You can download your FREE eBook on avoiding financial mistakes as a dentist using the link just here: www.dentistswhoinvest.com———————————————————————Ready to discover the subtle complexities and potential rewards of asset allocation? This insightful podcast will empower you by illuminating how traditional assets like stocks and bonds can be effectively managed within a portfolio. We'll weigh the merits of taking on more risk against the emotional rollercoaster of market volatility, unraveling the decision-making process that underlies successful wealth management.Venture with us into the labyrinth of investing volatility and its indelible imprint on asset allocation. Learn to differentiate between volatility and risk, and understand how these twin factors shape investment decisions. Harness the principles of Modern Portfolio Theory as a compass guiding your asset allocation journey. And we'll let you in on the secret sauce of tactical asset allocation, a tool for those wanting to take a more active role in their investment process.Let's expose the myth of financial planning as a bland, numbers-only game. We'll discuss the human element, situating financial decisions within the context of long-term goals and the risks we're willing to take. Longevity is a blessing, but it also presents challenges. So, we'll decode some shocking statistics about life expectancy and its impact on financial planning. Dig into the nitty-gritty of bonds, global asset allocation, and the maze of company and government debt. This episode promises to be a treasure trove of wisdom, satisfying the curiosity of novice investors and seasoned wealth managers alike.
Are you feeling overwhelmed by the changing environment for property investors? Are you struggling to find the right strategy to navigate the new landscape? Don't worry, we are here to help! In this episode, we will discuss the changing environment and financial constraints for property investors. And, how you should be thinking differently about your strategy as you go into 2023. We will also talk about how to become more flexible in your approach, and how to structure your portfolio to get the right combination of characteristics in a variety of different assets. Plus, we'll discuss how to protect your downside and maximize your upside! So, if you're looking for help to build a strategic and prolific property portfolio, join us for this episode! If you love this episode, email us at til@dashdot.com.au, and don't forget to subscribe, rate, and share this podcast! See you on the inside! In this episode, we cover: Welcome to the Investor Lab Podcast [0:00] The racetrack of property investing [03:52] What is the Modern Portfolio Theory? [07:38] Diversification of assets and portfolio [11:45] What to do when you have surplus cash and surplus financial capability?[14:48] How to keep going despite constraints? [15:50] Topgrading and optimizing your portfolio [18:02] How to avoid getting stuck in a global trend? [22:03] Solving problems through strategic thinking [25:43] Dogmatic vs Pragmatic approach on property investing [28:00] Connect With Us: See our other Podcasts: https://theinvestorlab.com.au/ Watch on Youtube (https://www.youtube.com/c/TheInvestorLab) Listen on Spotify (https://spoti.fi/3Np19x8) The Dashdot Website (https://www.dashdot.com.au/) Ready to work with us directly? (https://dashdot.com.au/discovery) Get your Property Portfolio Growth Plan (https://dashdot.com.au/portfoliogrowthplan) See omnystudio.com/listener for privacy information.
Now that you have learned about the different types of investments, it's time to put your knowledge to the test and start building your portfolio. In this episode, Zacc Call and Laura Hadley talk with Rich Gurr, CFP®, on the show to discuss not just how to set up your investment portfolio, but how to avoid the common mistakes beginner investors tend to make. Rich discusses: Why risk capacity should be the deciding factor on how you invest your money The first steps you should take when creating an investment portfolio The risks of becoming emotionally tied to a certain type of investment The 70/30 rule and how to use it in your portfolio And more Resources: Guided Path 3-6 Navigating the World of Alternative Investments with Tyson Long, CFP®, CPWA® Connect With Capita Financial Network: info@capitamail.com tfc@capitamail.com (801) 566-5058 Capita Financial Network LinkedIn: Zaccary Call LinkedIn: Laura Hadley LinkedIn: Capita Financial Network Facebook: Capita Financial Network Connect With Rich Gurr, CFP®: LinkedIn: Rich Gurr, CFP® About Our Guest: Rich Gurr, CFP®, is a fellow Wealth Advisor at Capita Financial Network. He is on the show to share his expertise around organizing investments, wealth planning, estate planning, tax strategies, and managing people with high net worths.
Miguel Sosa is a research and product strategist at Bluerock Capital Markets, which has $15 billion in AUM. At the 2022 CAIS Alternative Investment Summit in Beverly Hills, Miguel and I discussed a paper he wrote on Advanced Diversification, where he used modern portfolio theory to deconstruct the three elements of diversification to quantify the benefits of each of those elements. We then discussed how to apply those three elements to build a more efficient portfolio. We get a little technical in this one but I think you'll really appreciate how this type of knowledge can help you build higher performing risk-adjusted portfolios.
Jeff and Bruce talk to Lorenzo Esparza, chief executive and founding principal at Manhattan West, about his preference for alternative investments, especially when working with the firm's high-profile clients, including entertainers and athletes. Guest Bio:Lorenzo Esparza is the chief executive officer and founding principal at Manhattan West, where he leveraged his legal, corporate and financial experience to form the modern version of an investment firm.This episode is sponsored by Helios Quantitative Research.Founded in 2016, Helios Quantitative Research was created to equip Financial Advisors with new and relevant tools that drastically improve their client's asset management experience, expand their firm's margins, and challenge the old-guard legacy providers as well as the emerging robos of Silicon Valley. We believe that the majority of existing services available to Financial Advisors lack innovation, are too expensive, and enable commoditization in the wealth management industry.Therefore, we created our own service category – the insourced CIO. Our unique team of skilled and experienced individuals partners with financial advisors across the globe to create, implement, monitor, and communicate quantitative investment strategies that challenge Modern Portfolio Theory and seek to remove as much emotion as possible from investing. In a short time, we have grown to influence over 800 Financial Advisors who collectively manage over $30 billion.
ESG Decoded is a podcast powered by ClimeCo to share updates related to business innovation and sustainability in a clear and actionable manner. Welcome to our ESG Paradigm Shift Series, where we examine different angles of the ESG phenomenon and its broader implications for finance and prosperity. In this episode, Kaitlyn Allen talks with Rick Alexander, the founder of The Shareholder Commons (TSC). TSC is an organization dedicated to creating responsible ownership throughout the investing chain. Before founding TSC, Rick served as Head of Legal Policy at B Lab and spent 31 years at Morris, Nichols, Arsht & Tunnell LLP, practicing corporate law and four years as a managing partner. Rick also served as a member of the Delaware Corporation Law Council. In his work there, he was a leader in drafting and shepherding important corporate legislation, including provisions protecting shareholders from mandatory arbitration, enabling proxy access, implementing majority voting, and authorizing public benefit corporations – Delaware's version of the benefit corporation. Listen as Rick takes us on a journey through the history of Modern Portfolio Theory. Learn how individual corporations are being incentivized to externalize costs and why this cost externalization is born by diversified portfolio investors. How is ESG part of the solution? Enjoy tuning in to this episode! - Episode Resource Links From Meta to Twitter, What Everyone Gets Wrong About ESG — And Why It Matters | Institutional Investor The Shareholder Commons Moving Beyond Modern Portfolio Theory by Jon Lukomnik Benefit Corporation Law and Governance: Pursuing Profit with Purpose Rick Alexander SustainEx Schroeder's Report on Costs/Value The Rise of Fiduciary Capitalism: How Institutional Investors Can Make Corporate America More Democratic by James P. Hawley Two New Case Studies on Closing the Climate Change and AMR Engagement Gap - Make sure to subscribe to ESG Decoded on your favorite streaming platforms and our new YouTube Channel so that you're notified of our vodcast episodes! Don't forget to connect with us on our social media channels. Enjoy this episode! Interested in being a guest on the podcast? For consideration and scheduling, please fill out this form.
Anastasia and Bill cover the psychology of investing aka behavioral finance. Anastasia explains how behavioral finance differs from traditional finance, and Modern Portfolio Theory, before diving into a discussion of common biases and how they can affect individual investors' decisions. Why is it important to be aware of potential biases? Bill relates several biases to what he has seen in his career and offers advice for investors. Anastasia talks about credit card points and why you should be aware of mental accounting. To submit questions to the podcast or send comments on current episodes, you can email us at askcreatingwealth@taberasset.com.
Today Kate chats with Peter Tanous, investment advisor and author of “The Pure Equity Plus Plan: Your Path To A Multi-Million Dollar Retirement.” In this episode, Kate and Peter discuss: -Why Peter believes individuals should own stocks inside index funds, but should not be picking single stocks -What Peter believes is the No. 1 cause of the current market decline -Is the market responding to the current decline in gas prices and commodity prices? -What action could the Fed take that may cause another market bull run? -What specifically should older investors do to preserve capital, once they have amassed wealth? -Should investors follow the traditional financial planning advice to diversify internationally? -What is the mistake investors make when using Modern Portfolio Theory? -Which asset classes could offer investors income in this environment? Peter's Amazon author page: https://www.amazon.com/Peter-J.-Tanous/e/B001H6SRVU%3Fref=dbs_a_mng_rwt_scns_share https://www.lynxinvestment.com/ Links mentioned in this episode: https://www.marketbeat.com/all-access/ This podcast is hosted by ZenCast.fm
BRT Rebalance w/ Barry Ritholtz: Best of Investing 2022 - BRT S03 EP29 (128) 7-3-2022 Things We Learned This Week Masters of Business Podcast Qs - Who are your mentors? Philosophy? What books are you reading? Advice to graduates? What do you wish you knew 30 years ago? Three Keys to Being an Investor: Process, Behavior, Humility Recession Signs to look For – States Expanding or Detracting, Sahm Rule on unemployment uptick, Yield Curve – is it inverted? Guest: Barry Ritholtz ABOUT BARRY RITHOLTZ & MASTERS IN BUSINESS Bloomberg Opinion columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. Barry Ritholtz has spent his career helping people spot their own investment errors and to learn how to better manage their own financial behaviors. He is the creator of The Big Picture, often ranked as the number one financial blog to follow by The Wall Street Journal, New York Times, and others. Barry is the creator and host of Bloomberg's Masters in Business radio podcast, and a featured columnist at the Washington Post. He is the author of Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy (Wiley, 2009). In addition to serving as Chairman and Chief Investment Officer of Ritholtz Wealth Management, he is also on the advisory boards of Riskalyze, and Peer Street, two leading financial technology startups bringing transparency and analytics to the investment business. Barry has named one of the "15 Most Important Economic Journalists" in the United States, and has been called one of The 25 Most Dangerous People in Financial Media. When not working, he can be found with his wife and their two dogs on the north shore of Long Island. https://www.bloomberg.com/podcasts/series/master-in-business https://ritholtzwealth.com/ NOTES: Masters of Business podcast inspiration – On a plane watching finance news, interview of reclusive Hedge Fund Manager. Who are your mentors? Philosophy? What books are you reading? Advice to graduates? What do you wish you knew 30 years ago? Three key things Process – ability to distinguish between skill and luck. Like in sports at high levels in investment industry – differences are minimal. ARK Cathy Wood in 2020. Behavior – how to manage and stay calm, control limbic system, work through bad market. Humility – acknowledge serendipity and luck in life, could have worked differently. Gates not the first to be offered IBM deal. Other tech entrepreneurs visited Xerox Parq Jobs master of design, even on back of machine where no one looks. Inflation Hawks screaming for 15 years, finally right Three signs of Recession – good indicators: States – amount in expansion or contraction . Number of states growing or declining - % all 50 expanding. Philly Federal – State Coincident Indexes (get ink) hard to have recession when all states doing well. Sahm Rule – unemployment uptick .75 basis points in three month period from prior lows, unemployment mid 2022 is good. FRED – St. Louis Fed monitors indicator (get ink) Yield Curve – is it inverted? How long, how deep, careful for false positive data. Bonds interest rates long term higher than short term bonds, inverted when S/T rates higher than L/T. Six months is forever in economy, recession looks unlikely. 2023 – all bets off. Never know what disruption can occur, like Russia invading Ukraine. Outlook for the Knicks to make the Playoffs? Knicks will be good when they get new ownership who invests in the product. Need good quantitative analysis like how they acquired players in the heyday of the 1990s. Look at the turnaround of the NY Mets with Steve Cohen buying the team recently. Best of Investing 2022 Seg. 2 of BRT S03 EP03 (102) 1-16-2022 – BRT - Retirement & Income Planning from SEP IRA, 401K, to Roth IRA + Tax Brackets to Buckets Retirement & Income Planning Qualified Plans: ie - 401K & Roth IRA SEP IRA for business owners, can defer 25% of income if setup correctly Tax Brackets - tiered system of 10%, then 12%, 22% up to 35% - with more income, pushed into higher bracket and you pay more Tax Buckets (3) - Taxed (W2 income), Tax Deferred (401K, IRA), Tax Free (Roth IRA, Life Insurance) Denver Nowicz, President - Wealth For Life http://wealthforlife.net/ https://twitter.com/denvernowicz Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing'. FULL SHOW: HERE More Info on WFL and Tax Free Matching: HERE Wealth For Life Topic: https://brt-show.libsyn.com/category/Wealth+For+Life Link to Taxes Show on 10/31/2021 w/ Denver: Here https://brt-show.libsyn.com/category/Wealth+For+Life+ Seg. 2 of BRT S03 EP07 (106) 2-13-2022 – The Science of Hitting (TSOH) & Investing w/ Alex Morris FULL SHOW: HERE https://brt-show.libsyn.com/brt-s03-ep07-106-2-13-2022-the-science-of-hitting-tsoh-investing-w-alex-morris The Science of Hitting (TSOH) comes from the Ted Williams baseball book on batting and strike zone observations: ie – he tracked his average in each zone of the batter box, and had a higher average when he swung at pitches in a certain zone TSOH Investment Philosophy is Value Investing, classic Graham / Buffet style – buy high quality co's w/ good mgmt, L/T trends, and a Moat - Buffet quote: Investing is a game with no called strikes…can just wait for your pitch Long Term Investment Horizon – looking 5 to even 10 years out, for earnings and sales growth Key Value Drivers for a stock - Earnings Growth & quality of earnings, Price & Sale increases, ‘volume growth' P/E Type Metrics & GAAP Accounting is helpful but may not be useful with R&D, future sales, and volume growth. Example: Netflix – analyze cash expenditures vs. financials which have improved , what are the L/T – trends Guest: Alex Morris, TSOH Investment Research Blog - https://thescienceofhitting.com/p/my-investment-philosophy LKIN - https://www.linkedin.com/in/alex-morris-cfa-47b87027/ Twitter - https://twitter.com/TSOH_Investing Alex Morris, CFA publishes equities research through the TSOH Investment Research Service on Substack. He has written investment related articles on Gurufocus and worked in the finance industry (RIA's) for the past 10+ years. He is a CFA® charterholder and graduated with my MBA from the University of Florida in April 2015. Prior to starting his TSOH service, he spent ten years as an Equity Analysts at financial firms. Seg. 2 of BRT S03 EP17 (116) 4-24-2022 – Money for the Rest of Us w/ David Stein FULL SHOW: HERE https://brt-show.libsyn.com/brt-s03-ep17-115-4-24-2022-money-for-the-rest-of-us-w-david-stein Investment vs. Speculation vs. Gambling: You must understand the difference and recognize which camp the product you're considering is in The three drivers of asset class performance: These all relate to cash and earnings, cash flow, cash flow growth and change in valuation, and how each impacts the future price of an asset class The Efficient Market Hypothesis vs Adaptive Market Hypothesis: which combines behavioral finance w/ EMH Wayfinding: An alternative to traditional rebalancing of asset allocation - use current market conditions to help evaluate where you should increase / decrease your exposure, depending on how the asset is doing currently Modern Portfolio Theory vs. The Asset Garden Approach when adjusting asset allocation, focused on diversification between return drivers - Like landscaping, there are rules of thumb, but there's freedom to create and build the portfolio. And it's much easier to make changes. Guest: David Stein, Money for the Rest of Us https://www.linkedin.com/in/jdstein/ https://moneyfortherestofus.com/ https://moneyfortherestofus.com/about/ Book: https://moneyfortherestofus.com/how-to-invest-book/ David Stein's Bio: David helps individuals become better and more confident investors through his writing, audio, and video. He hosts the personal finance podcast Money For the Rest of Us. The show reaches more than 40,000 listeners per episode and has over 10 million downloads. The podcast has received mention from The New York Times, Forbes, The Chicago Tribune, and the U.S. News and World Report. David also provides investment insights and model portfolios to 1,000 members of the Money For the Rest of Us Plus community. David Stein author of Money for the Rest of Us 10 Questions to Master Successful Investing Prior to launching the podcast, David was Chief Investment Strategist and Chief Portfolio Strategist at Fund Evaluation Group, LLC, a $33 billion investment advisory firm. Seg. 2 of 4/3/2022 – Options vs Stocks & Trading vs Investing w Tom Sosnoff of tastytrade FULL SHOW: HERE https://brt-show.libsyn.com/brt-s03-ep14-113-4-3-2022-options-vs-stocks-trading-vs-investing-w-tom-sosnoff-of-tastytrade Implied Volatility & Time Decay – options begins with volatility, on a clock so Mechanics (forget mind set) on how to setup a trade is key tastytrade is a media network based on Math (Probability & Statistics - Look at the Math), trading & focus on markets Limited Profitability & Unlimited Risk when you Sell Puts w/ 80% chance of success - Be a Seller of Options – let Market beat you, slight edge Trade Small, Trade Often - Law of Large Numbers w/ 45 DTE Strike Price of 1 SD – Exit or Roll at 21 DTE Options Trading Teaches Life Lessons – Important to: take risks, learn to take risks, make quick decisions, be decisive about those decisions. Guest: Tom Sosnoff of tastytrade https://www.tastytrade.com/ https://twitter.com/tastytrade Tom Sosnoff, founder and co-CEO of tastytrade Tom Sosnoff is an online brokerage innovator and financial educator. Tom is a serial entrepreneur who co-founded thinkorswim in 1999, tastytrade in 2011, tastyworks in 2017, helped to launch the award- winning Luckbox Magazine in 2019, and in 2020 he created the first new futures exchange in 20 years, The Small Exchange. Leveraging over 20 years of experience as a CBOE market maker, Tom is driven by the passion to educate self-directed investors. A true visionary, after his years on the floor he saw the need to build and design superior software platforms and brokerage firms that specialized in complex financial strategies. Seg.2 of BRT S03 EP22 (122) 5-29-2022 – The One Thing w/ Jay Papasan of Keller Williams Realty FULL SHOW: HERE https://brt-show.libsyn.com/brt-s03-ep22-122-5-29-2022-the-one-thing-w-jay-papasan-of-keller-williams-realty The One Thing – Power of Focus, Find your 1 thing - Live Purposefully & be Accountable Dominos - Priority in Latin = First, what is your first Domino? knock it down and all others lined up will fall Time Block - Focus Time the first few hours of each day, 'Battleground' - fight to block out this time Success has a Roadmap – it leaves clues, Modeling & Develop Habits in Life, Bus & Real Estate Investing Productivity Thieves - Learn to Say No, pick tasks carefully, Multitasking is a Waste of Time Guest: Jay Papsan, VP of Keller Williams Realty https://the1thing.com/ https://www.jaypapasan.com/ https://www.linkedin.com/in/jaypapasan/ https://twitter.com/jaypapasan https://kw.com/ Jay Papasan is a bestselling author and serves as vice president and executive editor at Keller Williams Realty Inc, the world's largest real estate company. He is also co-owner and co-founder of several successful businesses, including Keller INK, Keller Capital, and, alongside his wife Wendy, Papasan Properties Group in Austin, Texas. When Jay first moved to Austin, he joined Keller Williams Realty Inc, and soon began working directly with the founder, Gary Keller. In 2003, he co-authored The Millionaire Real Estate Agent alongside Gary Keller and Dave Jenks. Clips from BRT S03 EP11 (110) 3-13-2022 – 401K – Turns Spenders into Savers w/ Jean Smart of Penelope & Ted Benna ‘Father of the 401K' FULL SHOW: HERE https://brt-show.libsyn.com/brt-s03-ep11-110-3-13-2022-401k-turns-spenders-into-savers-w-jean-smart-of-penelope-ted-benna-father-of-the-401k 401K turns Spenders into Savers 401K provides Tax Deferral now, lowers Taxable Income Penelope serves Microbiz, business of 5 – 50 employees who are underserved by major financial institutions Simplify choices, and streamline the 401K process, reduce fees so all size business can participate Ted Benna – Father of the 401K, 401K may not be appropriate to all people or business, choose 401K or IRA based on needs & size of business Guests: Jean Smart, Founder of Penelope https://www.penelope.co/ https://www.linkedin.com/company/penelopeco Jean Smart is the Founder/CEO. She has overseen the building of a cloud based recordkeeping system from scratch and they have begun to take on clients. I have helped them shape what they are offering using what I have learned working with small businesses. Their goal is to help micro female and minority owned businesses pick the right plan - not just a plan. Guests: Ted Benna, Benna 401K http://benna401k.com Ted Benna, Father of the 401K, has worked in pension and retirement benefits industry for 60 years, and literally wrote the book on the 401K. He was a pioneer in the early 80s in designing the early 401K Plans, and then getting them approved by the IRS to be the model still used today. Books: 401K Forty Years Later (2018) – history of the 401K 401K & IRA for Dummies Updated Version (2021) Ted Benna 1st appearance on BRT Podcast in 8/2021 Topic: Ted Benna, the Father of the 401k Covers It All, History, pensions, Fees & More Full Show: HERE ‘Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement More 'Best of Investing': Here Thanks for Listening. Please Subscribe to the BRT Podcast. Business Roundtable with Matt Battaglia The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… BRT Podcast Home Page: https://brt-show.libsyn.com/ ‘Best Of' BRT Podcast: Click Here BRT Podcast on Google: Click Here BRT Podcast on Spotify: Click Here More Info: https://www.economicknight.com/podcast-brt-home/ KFNX Info: https://1100kfnx.com/weekend-featured-shows/ Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.
It's a bold claim. And people outside of financial history might wonder how this could possibly be true.Will Goetzmann will elaborate on this claim in today's episode. He is the Edwin J. Beinecke Professor of Finance and Management Studies and Faculty Director of the International Center for Finance at the Yale School of Management. Will's current research focuses on alternative investing, factor investing, behavioral finance and the art market.Will has written and co-authored a number of books, including “Modern Portfolio Theory and Investment Analysis,” “The Origins of Value: The Financial Innovations that Created Modern Capital Markets,” and most recently, “Money Changes Everything: How Finance Made Civilization Possible.”Will and Greg talk in this episode about jurors in Athens, slave ownership and early banks, outsourcing public administration in ancient Rome and modern times and making career a switch from art history to operations research to finance.Episode Quotes:Why is financial history important to know and study?For me, I'm always interested in where do things come from and why they matter. And I try to focus on the sort of bigger picture of the implications of having these tools. And I think that that's an important thing. You can only get it through history, because it takes time for things to play out. On having an unconventional career pathI've always had an omnivorous curiosity. Perhaps un-controlled. And so in some sense, I followed opportunities, as opposed to having a one goal in life. So there's a whole spectrum of different kinds of people. I'm one that has done lots of different kinds of things.Preservation of the stateOne way you could break down different kinds of governments along the fault line of finance would be to look at some of the city states they emerged in Europe as a merchant driven, merchant owned, merchant controlled.Show Links:Recommended Resources:Carl Menger - WikipediaUlrike Malmendier's HomepageThe River LekK. Geert Rouwenhorst | Yale School of ManagementJohn IngersollGuest Profile:Faculty Profile at Yale School of ManagementProfessional Profile at National Bureau of Economic ResearchWill Goetzmann on LinkedInWill Goetzmann on TwitterHis Work:Will Goetzmann on Google ScholarMoney Changes Everything: How Finance Made Civilization PossibleThe Origins of Corporations: The Mills of Toulouse in the Middle Ages The Origins of Value: The Financial Innovations That Created Modern Capital MarketsThe Great Mirror of Folly: Finance, Culture, and the Crash of 1720Modern Portfolio Theory and Investment AnalysisThe Equity Risk Premium: Essays and Explorations
Today on Rational Reminder we take a deep dive into the evolution of modern portfolio theory. We kick the show off with some updates and reviews on some of the brilliant shows and books we are watching right now. A key item from this selection is Stolen Focus: Why You Can't Pay Attention and the points it makes about the value of flow state for learning and creativity. After this week's news stories, we get into the main topic, and Ben starts with a breakdown of portfolio theory as it was laid out by Harry Markowitz in 1952. From there we talk about research that shaped the current understanding of portfolio theory, exploring the distinction between the mean-variance efficient portfolio and the multi-factor efficient portfolio, and how they theoretically combine to make the market portfolio. One of the biggest takeaways here is that your financial asset portfolios can look the same in terms of asset allocation but the person with more macroeconomic risk in the remainder of their financial situation is taking on more risk. Additionally, even if somebody is the perfect candidate to be the mean-variance investor and they could theoretically tilt toward value, it doesn't necessarily mean they have to. We wrap up our conversation by inviting our good friend Larry Swedroe onto the show to speak about his love of reading and share his methods for incorporating what he learns from books into his work and thinking. Key Points From This Episode: Updates: Shows, books, upcoming guests, reviews, and our reading challenge. [0:00:22] A review on Stolen Focus: Why You Can't Pay Attention. [0:11:00] News stories for the week: Wealthfront offers thematic ETFs and more. [0:18:47] Moving onto the main topic for today: How modern portfolio theory has changed since 1952. [0:23:00] Lessons to be taken away from Markowitz's 1952 portfolio theory. [0:25:09] How the math changes when you have a risk-free asset in your portfolio problem. [0:26:59] The capital asset pricing model: the other foundational portfolio theory principle that comes from the mean-variance model. [0:29:08] Portfolio advice that stems from mean-variance optimization. [0:32:46] Building a tangency by expressing information beliefs. [0:36:06] Findings from Michael Jensen's 1967 application of the CAPM. [0:37:04] Why diversification is important according to Markowitz's portfolio theory. [0:38:02] Why the CAPM does not accurately reflect the relationship between risk and expected return. [0:39:49] The origins of multi-factor thinking and examples of multi-factor models. [0:41:10] How the allocation of the multi-factor efficient portfolio creates a third dimension. [0:49:29] How the theory predicts how people behave in aggregate. [0:52:44] Takeaways from today's discussion to keep in mind when building your portfolio. [1:00:00] Larry Swedroe joins us to talk about the importance of reading. [1:03:32] The many subjects that Larry reads about. [1:04:12] How Larry's reading habit works. [1:05:12] How to capture ideas you read for later use. [1:05:57] Larry's storage system for all the books that he reads. [1:08:38] The effectiveness of making a public commitment to read more. [1:12:13]
It is important to recognize the amount of risk you're willing to take on in order to achieve a diversified portfolio. On this episode, Casey Smith, Matthews Barnett, CFP®, ChFC®, CLU® and Brad Lyons, CFP® talk about the importance of portfolio diversification. They talk about modern portfolio theory, the efficient frontier line, allocating your assets, and they offer advice on how to diversify your portfolio.Download our free guide on "3 Ways to Grow and Protect Your Portfolio".Click here to schedule a consultation with one of our financial planners.Connect With Us:Our WebsiteYouTubeFacebookLinkedInInstagramTwitterPodcastBlog
The goal of every property investor should be to create a portfolio with the optimal combination of risk and reward, BUT most of them never get past two properties – and it's very hard to build a balanced portfolio with two assets. So, how do you maintain a good mix in your portfolio while keeping your risks, returns, and capital allocation in check? Today, we talk about a concept called the “efficient frontier” - a powerful tool property investors use to establish the most efficient rate of return and capital allocation. To dig more into this, we've got Charley Valher of Valher Media joining in as we tackle the efficient frontier curve, the Modern Portfolio theory, expensive versus cheap property, buying stigmatized units, and identifying gentrifying areas. If you love this episode, let us know by emailing us at til@dashdot.com.au, and don't forget to subscribe, rate, and share this podcast! See you on the inside! In this episode, we cover: Finding the Efficient Frontier curve [02:59] Building an efficient & diverse property portfolio [05:53] The formula behind the Modern Portfolio Theory [09:06] The best approach when starting a property portfolio [13:27] Can units and apartments still perform well in Australia? [19:40] The right way to structure your portfolio and avoiding getting “stuck” [25:54] Wealth vs Cash flow: Understanding your real estate goals [28:47] Should you consider buying stigmatized property? [33:53] Identifying gentrification and the Commodore Theory of Growth [38:47] The value of talking to locals when scouting property [41:30] Links from the Show: Visit Asset Blocks Connect With Us: Dashdot Website (https://www.dashdot.com.au/) Limitless: The Renegade's Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com) Ready to work with us directly? (https://dashdot.com.au/discovery) About our Guest: Charley Valher is a household name among business owners, investors, and entrepreneurs. He is the Founder and CPO of Valher Media, helping entrepreneurs scale their business through the business of podcasting. His expertise has helped launch multiple podcasters into becoming one of the best in their field. If you liked this episode, please don't forget to subscribe, tune in, and share this podcast. Thanks for tuning in! See omnystudio.com/listener for privacy information.
In today's episode Greg and Colin talk about some fundamentals of Modern Portfolio Theory. Digging into the Capital Asset Pricing Model (CAPM) and Expected Return. Enjoy the show!
Happy New Year! What a better way to kick off 2022 than to give you the best financial advice that can be implemented into your plan right now. Brian and Jeremiah talk about the Bucket Strategy and the Modern Portfolio Theory. Diversification, time, and the strategies to beat our country's current inflation. Brian Wiley, Financial Advisor Jeremiah Bates, Financial Advisor www.therealmoneypros.com www.treecityadvisors.com
Jon Lukomnik was deemed "one of the pioneers of modern corporate governance” by Forbes, has overseen all five of the New York City pension funds, and is the author of the new book "Modern Portfolio Theory." Pretty impressive, right? He's also the first guest in Sound of Sucess history to add on questions to Nic's questionnaire. Find out what questions Jon wants to tack on, and hear him discuss his love for Motown, Lizzo, Jon Batiste, bandleader for 'The Late Show with Stephen Colbert," and his upcoming podcast for Spark Network.
Why being neutral on growth vs value may actually be speculating.In this episode, Aaron and Trishul do a deep dive on asset allocation. The percent of stocks vs the percent of bonds in an investment portfolio. They explain how an all-stock portfolio is less risky than you think, while an all-bond portfolio is even riskier than you may believe. Losing money is only one type of risk. But if you understand all the other risks involved, you then get to decide which risks are the most important to your situation.Episode ReferencesMMS #43. Is your asset allocation putting your retirement at risk?MMS #42. Investment strategies evolve, but is your portfolio stuck in a foregone era?Investing Forever - Why invest in one thing over another?Investing Forever - Efficient Market HypothesisInvesting Forever - Risk, EverywhereInvesting Forever - Why buy-and-hold can save you bigHarry MarkowitzPodcast DescriptionWelcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.
Where can you invest your savings - a bank account or in shares? In this episode Glen digs into these options, talking on:
In this episode of the DeFi Download, Piers Ridyard explores risk management solutions in DeFi with Potion.Finance contributors Alfablok and Buendia.Potion is a risk management layer for DeFi, allowing people to manage the risk of their crypto in DeFi positions as well as the volatility that is inherent in the DeFi space.Alfablok and Buendia take Piers on an expedition through the intricacies of risk-taking and risk management, proposed alternatives to the Modern Portfolio Theory, Nassim Taleb's risk management theories, and applications of the Kelly criterion.[00:00:46] Where did the inspiration for Potion.Finance come from and what is the purpose of its creation?[00:01:52] An overview of Modern Portfolio Theory and its current place in traditional finance[00:04:30] Limitations of the Modern Portfolio Theory[00:08:38] The first steps in active risk management on DeFi[00:10:32] Explanation of the terms “hedged positions” and “put options”[00:15:44] Potion's solution for making hedging accessible to people who are unfamiliar with the complexities of put options[00:18:51] Addressing the two sides of put options: the buyer and the seller[00:25:58] Potion's simulation laboratory[00:33:00] The Kelly criterion and how the Potion team implemented it into its protocol[00:45:23] Creating an emergent pricing model based on the utilisation[00:47:06] Conclusion: Does Potion provide an easy way for people to hedge, and does it generate option prices that people are willing to pay?Further resourcesWebsite: PotionTwitter: @PotionLabs Medium: Potion Labs Discord: discord.potion.finance
In this episode, Trishul and Aaron discuss the academic research that has informed investing strategies over the past 90 years. Value & Momentum, Modern Portfolio Theory, Efficient Market Hypothesis, Factor Analysis, Asset Allocation, and more. They cover everything you need to know to sound intelligent with your investment club. But the big picture is that all this knowledge won't increase your odds of beating the market. Even though many of these breakthroughs resulted in Nobel Prizes, as more investors flooded to adopt cutting-edge strategies, superlative returns became ever more elusive. It turns out some of these winning approaches do work some of the time, as theory would suggest. However, none of them work with sufficient consistency. Furthermore, it's likely impossible to identify the periods when a strategy will work as intended. In the end, you may be better off finding something better to do with your time and money than trying to outsmart the market.Episode ReferencesMMS #2. Buying stocks can be fun, but don't fall into these common traps.MMS #21. Why the VIX is useless.Investing Forever - Why investing in one thing over another?Investing Forever - Efficient Market HypothesisModern Portfolio TheoryIdiosyncratic RiskBenjamin GrahamCapital Asset Pricing ModelFama French Three-Factor ModelSetting the Record Straight on Asset AllocationMomentum InvestingModern Portfolio Theory vs Behavioral FinanceWarGames (1983)ObsoletedRemain Solvent (Quote)Value and Momentum EverywhereFlash Boys by LewisPodcast Description Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.
I have been reading a lot of financial disaster books lately like Liars Poker, FIASCO, and When Genius Fails and it got me thinking about what in our current financial system could be responsible for a future crash when we look back from a historical view. I talk about Modern Portfolio Theory about how you are likely exposed to it and why it might be a problem. I hope you enjoy it. Thanks for listening. -Brad---Email: bradrykalbrief@gmail.comTwitter: @bradrykalIf you like the show - subscribe, leave a review or tell a friend.