As stock markets around the world set record high's on an almost daily basis and despite all political chaos and maybe surrounding it, I keep wondering, and asking myself how sustainable this is? This just can't continue on like this. Something deep down is telling me this epic run will somehow end...but how? What is it that will take this whole house of cards down? In this episode Aman tries to brainstorm some possible scenarios that could be the trigger to pulling the stock market down.
The active investing versus passive investing debate continues and it will likely continue forever. An interesting wrinkle though in the debate has popped up and it involves literally the patriarch of index investing changing teams. In this episode Aman dives into this stunning change of heart. At first Aman was ready to go into full "gotcha" on this, however this case highlights an important quality that investors needs to build up in their tool box. Excuse the coughs!
At the core of my personal investing ideology is the concept of having entry and exit points for when a stock or ETF reaches a certain return level. In this episode I share some of my recent investment decisions many of which came to down to whether to hold or sell a few positions in my portfolios as they had crossed my personal return threshold.
In episode 69, I reported some interesting changes that occurred on my Robo Advisor portfolio that I setup a few years ago. At the time, I thought that the changes could have been temporary as part of stepping stone. In this episode, I check in on my Robo portfolio at the mid-year mark to see if those changes have remained.
RANT ALERT! In episode 66, I went on a bit of a rant after a blogger said I was asking the wrong investing question in that performance shouldn't play a factor in investing. A common feeling people who start investing experience is intimidation, especially from the financial services industry. They feel like they are being talked down and become hesitant to learn more and ask questions. This plays into to investment industry's hands. To give you another example, in this episode, I share with you a question person asked about robo advisors, and the response that was provided by someone who works in the financial services industry. The response made me really angry but at the same time didn't surprise me as it was a typical response I would expect.
A right of passage for anyone studying investing and finance in university is to face the beat down of learning one of core investing theories which is the Efficient Market Hypothesis (EMH). It is a particularly dry topic which I recall on several occasions made me almost fall asleep in class. In school they basically ram the EMH into your brain and I really wasn't in any place to know if it was a good thing. You just accept it and move on. Over time though, I grew more suspect of this model especially after seeing people like Warren Buffet and Peter Lynch basically thumb their nose at it and had a bank account to prove it. Over time also I've become a proponent of behavioural finance theories having a greater impact in how we make investing decisions. Another variant of the EMH has emerged, called the Adaptive Market Hypothesis, which integrates a behavioural component to the discussion. In this episode I examine both Hypothesis and offer my takes on the pro's and cons of each.
The move by Amazon to buy Whole Foods is a game changer deal on so many levels. In this Amazon, Aman offers his takes on the deal and how it can shake up the entire retail sector along with how he is framing his investment decisions in his own portfolios going forward.
A lot of times in investing, opportunities and times for action don’t happen on schedule. They just happen and you have to be ready to execute. That is the great benefit of having an investment ideology and The List of companies you’ve done your homework on and are ready to buy if the price is attractive enough and the fundamentals of the business haven’t changed from when you were evaluating the company. In this episode Aman reviews his recent investment decisions.
It's interesting to note that as stock markets in the US set record high's on a daily basis that when you dig deeper, most of the gains in the market are being driven by a handful of stocks. This episode of Stock Talk skews heavily into some academic research side and I use the term "skew" purposely as some old research has re-emerged and has shed some light on another factor that makes it hard to outperform the overall stock market.
No video for this episode!
Since I started doing Stock Talk in podcast and video forms, I've noticed something. It appears the most popular episodes are the one's where I've shared responses that I've offered to people that have sent me questions or responses that I've given in personal finance and investing groups. The great thing is these questions are not really that personal and I feel many, many people can benefit and learn from. It appears you feel the same way! So I plan to do more of these type of podcasts in the future. Here's my latest edition where I answer questions ranging from "What is an SEC 10-K Report?" to "What are the fundamental skills for investing in stocks?" to finally "How does investing in stocks work?". These are amazing, elegant, and powerful questions form a important foundation for investing.
Our journey to achieving important financial goals like retirement or buying a house have traditionally been long treks. In recent years we've been seeing more people who aren't interesting running that marathon but would prefer to sprint to the finish line and achieve FIRE (Financial Independence Retire Early) or other personal finance goals like paying off their mortgage in 5 years, or engaging in multi-year spending moratoriums. These types of extreme personal finance behaviours make great copy and get a lot of clicks and attention. They also create emotional feelings no different than someone who feels inadequate or has a bad body image because of images the media projects on us what norms we should be aspiring to do. In this episode, Aman offers some takes on this type of personal finance "porn" can while inspiring, can give most people a feeling of bad "personal finance image".
Another edition where I share my thought processes that went into my most recent investment decisions. It's one thing for me to teach people how to invest. It's another to model the behaviour. In this episode Aman shares his thought process that went into his decision to buy an ETF and his decision to sell a stock.
As stock markets continue to set records, at times almost on a daily basis, some people who have been sitting on the sidelines are starting to wonder if they should buy stocks now before the train leaves the station. People are grappling with a bad case of FOMO (Fear of Missing Out). FOMO is kryptonite for investors, and can skew us to make emotional investment decisions which could hurt our savings. In this episode, Aman talks about what happens when we get FOMO'ed as investors and what we can do to avoid this behaviour.
The financial services industry has been taking a hit lately. With admissions by former staff of pressures by management to meet aggressive sales targets, up-sell customers, and create accounts without customer consent, it hasn't been good run even though they continue to crank out massive profits. The reality is despite these transgressions, banks are not going away. Financial advisers or advisors are not going away. As investors we will need to co-exist with them. In this episode, Aman walks through some strategies that we can take to become more street smart when dealing financial advisers of all stripes and get the outcomes we need to help us meet our financial goals.
There's been a lot of angst and worry and hysteria thanks to the newly elected Mad King and his minions. You won't find any of that on Wall Street these days. Every is awesome! Aman shares some of the current psychology that is pervading the trading floors and counters of Wall Street.
Since I've been posting the podcast version of Stock Talk, I've been getting a lot more questions about investing and some pretty damn good ones so I thought I would share a couple with you as they capture some pretty important investing concepts that we all need to make sure we've got lined up before we embark on our investing journey. One questions comes from an 18 year old who asked, "What kinds of stocks should an 18 year old invest in?" The other question was, "What will be the best investment for the next 10-20 years?" Pretty good huh? Well I take my best shot in answering them
This episode is a bit of a catch-up episode in that I touch base on a variety of interesting behavioural investing observations, starting with my own recent investment decisions and layering on some observations on how easily we can be swayed to take investment decisions that we really have no business taking. Finally I touch on a recent trend in the investing space where professionals are adding a little Zen to their investment decision making process.
I thought I would take a break from talking about robo advisers, but I discovered something in my robo portfolio that I couldn't put off sharing with you. One of the key value propositions of robo advisers is they stay disciplined to keeping your portfolio diversified across different types of stocks and bonds. When certain parts of the portfolio stray away from their allocations and increase or decrease significantly, the robo computer would rebalance via buying and selling the appropriate Exchange Traded Funds (ETF's). Earlier this week I happened to be checking on my portfolio and was taken aback about how the portfolio was looking. In this episode I share what I discovered about how my robo portfolio looks now.
This episode is a replay of the webinar I delivered on finding your right investing path. I've delivered this presentation many times and it's one of my favourite and one of the most important. Many times I get asked, "Aman, I have $5000 or $10,000 or $50,000 and I want to invest it. What stocks or bonds or ETF's should I buy?" People are looking for the quick answer and solution. Unfortunately investing doesn't work that way. Investing is very much a marathon not a sprint. In order to make the right investing decisions and answer the question above, you need to first make sure you are on the right investing path as there are numerous ones available to all of us. In this webinar I walk you through these investing paths and help you try to figure out how to select the right path that is compatible with your personal circumstances. I also share some important principles and competencies that successful investors have developed that are important no matter what path you select.
In this episode, Aman provides some interesting updates from his previous episode where he was critiqued by a blogger regarding his use of questions as it pertains to the performance of his robo portfolio. It's also an episode of firsts as Aman presents his first book report since Grade 3. One of his goals this year is to read some of the personal finance books that have been piling up in his house. Aman's book report is on the book, Victory Lap Retirement, written by Mike Drak and Jonathan Chevreau.