Aug 03, 2018

Episode 2 – Indexing is Here to Stay

 

Key Points From This Episode:

  • The underperformance of value stocks [0:02:45]

  • Are we in a Winner Take All market? [0:04:19]

  • Facebook’s crash [0:05:03]

  • Global value performance [0:05:06]

  • Canadian value premium at ~+5.5% [0:07:17]

  • Rebalancing into the pain [0:08:39]

  • Factor diversification [0:09:00]

  • Having a philosophy and sticking with it [0:09:56]

  • Index fund flows are slowing down in the US [0:11:06]

  • Canadian active funds are still dominating passive ETFs [0:11:06]

  • Markets are still efficient [0:13:28]

  • Deciding to be an index investor takes work [0:15:23]

  • Fewer highly skilled active managers make markets more efficient [0:15:58]

  • Canadians might need to buy real estate to retire [0:22:34]

  • Doctors were sold out by MD Management [0:23:14]

  • Should you listen to the yield curve? [0:24:42]

  • Michael Batnick’s chart crimes [0:28:50]

  • DFA’s weights vs. the S&P 500 weights [0:29:30]

 


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/

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca

Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

‘Pareto’ — Pareto – The Irrelevant Investor

‘Don’t cry over underperforming US value stocks’ — https://pwlcapital.com/dont-cry-over-underperforming-us-value-stocks/

‘Index Funds Are Going to Be Just Fine ‘ — https://www.bloomberg.com/view/articles/2018-07-18/slower-inflows-to-passive-funds-don-t-signal-investor-discontent

‘The growth of index investing has not made markets less efficient’ — https://www.economist.com/finance-and-economics/2018/07/05/the-growth-of-index-investing-has-not-made-markets-less-efficient

‘People Aren’t Dumb. The World is Hard.’ — http://freakonomics.com/podcast/richard-thaler/

‘Many doctors feel “betrayed” by sale of MD Financial Management’ — http://www.cmaj.ca/content/190/25/E776

‘Earth to investment advisers: You’re blowing it with millennials’ — https://www.theglobeandmail.com/investing/markets/inside-the-market/article-millennials-slow-to-enter-investment-market-according-to-study/

‘Arguing With the Yield Curve’ — http://awealthofcommonsense.com/2018/07/arguing-with-the-yield-curve/


The charts we talked about:

Rational Reminder Podcast

Image source: Michael Batnick

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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