Aug 09, 2018

Episode 4 – The Race to 0%

After a successful launch, the podcast will live on! Thanks for the support and feedback.

Key Points From This Episode:

  • After a successful launch, the podcast will live on! Thanks for the support and feedback [0:00:00]

  • The longest bull market in history? [0:01:07]

  • Are we repeating the tech bubble? [0:01:53]

  • Why it still makes sense to hold bonds [0:02:18]

  • Rebalancing isn’t always easy [0:03:33]

  • The Lost Decade, sort of [0:05:16]

  • Is tax-loss selling worth it? [0:05:41]

  • Horizons’ marketing mistake [0:10:41]

  • One decision funds [0:13:14]

  • Index fund fees are finally at 0% [0:15:49]

  • Sec lending is the future of index fund revenue [0:16:32]

  • Charley Ellis on the history of active management [0:18:30]

  • There are less willing losers today than there were in the past [0:19:34]

  • The paradox of skill [0:22:32]

  • Active managers underperform consistently [0:25:37]

  • Daniel Kahneman does not believe active management works [0:25:37]

  • If you think you have intuition about stocks, you’re wrong [0:26:08]

  • Corporate DB pension plans are not risk-free [0:26:50]

 

Book From Today’s Episode:

Thinking, Fast and Slowhttps://amzn.to/32xKHWY

 

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/

Shop Merch — https://shop.rationalreminder.ca/

Join the Community — https://community.rationalreminder.ca/

Follow us on Twitter – https://twitter.com/RationalRemind

Follow us on Instagram – @rationalreminder

Benjamin on Twitter — https://twitter.com/benjaminwfelix

Cameron on Twitter — https://twitter.com/CameronPassmore

‘The Lost Decade’ — The Rational Reminder Episode 4 – The Race to 0% – PWL Capital

‘S&P Dow Jones Indices’ — SPIVA Canada Year-End 2017 Scorecard (spglobal.com)

‘This bull market could become the longest in history this month’ — This bull market could become the longest in history this month (cnbc.com)

‘Tax-Loss Harvesting: Should Investors Believe the Hype?’ — Tax-Loss Harvesting: Should Investors Believe the Hype? | CFA Institute Enterprising Investor

‘Horizons ETFs Launching 0% Management Fee ETF Portfolio Solutions’ — https://www.newswire.ca/news-releases/horizons-etfs-launching-0-management-fee-etf-portfolio-solutions-689860141.html

‘Free Fidelity Funds Stoke Price War in Bid to Catch Index Giants’ — https://www.bloomberg.com/news/articles/2018-08-01/fidelity-to-offer-index-mutual-funds-with-zero-expense-ratio

‘ETFs still gathering assets, but inflows slow as investors favor lower-cost funds’ — https://www.cnbc.com/2018/08/02/etf-inflows-slow-as-investors-favor-lower-cost-funds.html

‘Then, and now’ — https://csinvesting.ca/blog/2018/8/7/then-and-now

‘Kahneman’s Insights: Beyond Thinking Fast and Slow’ — https://www.cfainstitute.org/en/research/multimedia/2018/kahnemans-insights-beyond-thinking-fast-and-slow

‘It’s going to be hard’: Sears pension payments cut by 30% this week’ — https://www.cbc.ca/news/business/sears-canada-pension-retirees-1.4773283

 


The charts we talked about:

The Lost Decade

Source: PWL Capital

Percentage of funds outperforming

Source: S&P Dow Jones Indices

 

About The Author
Cameron Passmore
Cameron Passmore

Cameron Passmore has been a leading advocate for evidence-based, systemic investing for over 20 years in the Ottawa area. Today, Cameron and his team serve a broad range of affluent clients across Canada.

Benjamin Felix
Benjamin Felix

Benjamin is co-host of the Rational Reminder Podcast and the host of a popular YouTube series.

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