Episode 72 is a radio show format before we start back with guests this fall. Some of the questions and topics you’ll hear:
- You've said that bonds can face significant drawdowns. But because of the way bonds work, is it the case that bond ETFs guarantee a positive return over time (assuming held to maturity and no default)?
- I have heard that equal weight beats market cap because it sells the expensive stocks and buys the cheaper ones. I also have heard that most of the stock market gains over time are due to a small percentage of companies. So why does selling the winners down to equal weight and buying the lower performing stocks beat just letting winners run?
- Are markets, in fact, growing more correlated?
- Last week’s episode about a dividend strategy without the dividend… Why are so many investors against the idea of creating their own synthetic dividend despite its various advantages?
- Robert Shiller’s new piece in The New York Times about current investor sentiment and its potential implications for this bull market
- What are best practices for trading low volume ETFs?
As usual with the radio show formats, there are plenty of additional rabbit holes including the potential direction of the U.S. dollar, the velocity of money, and the tug of war between inflation and deflation.
What is Meb’s take on all this? Find out in Episode 72.