AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Tax Loss Harvesting
The authors of this paper suggest that the cost of direct indexing is likely not worth it. But investors may still want to engage in tax loss harvesting using funds since the costs are much lower. They find lower tax alpha for loss harvesting with funds, but they still do find a tax alpha. It doesn't work for every investor. And it depends on the return environment and all that kind of stuff.
In today’s episode, we pull relevant quotes from past guests (namely John Cochrane, Gene Fama, and Jonathan Berk) to extricate who should own market cap funds. We look at the variable risks of value stocks and factor investing and hear counter-views on owning the market. We also delve into the hot topic of tax loss selling, with an overview of a recent Financial Analyst Journal paper on loss harvesting outcomes, sorted by investor profiles. This episode will get you up to date on the biggest finance news of the week, from crypto collapses to Amazon’s catapulting gains and losses. Tune in to hear all of this and more, including a recap of our conversation with Dave Goetsch and our Financial Literacy Month book reviews.
Key Points From This Episode:
Participate in our RR CE Credits Survey: Participate in our Community Discussion about this Episode: Books From Today’s Episode:
The Geometry of Wealth: How to shape a life of money and meaning — https://amzn.to/3Od9J3N
Retirement Income for Life: Getting More without Saving More — https://amzn.to/3GpkHRN
We're Talking Millions!: 12 Simple Ways to Supercharge Your Retirement — https://amzn.to/3UI3uaE
Common Sense on Mutual Funds — https://amzn.to/3AjUsIM
The Investment Answer: Learn to Manage Your Money and Protect Your Financial Future — https://amzn.to/3UWeSPM
Money Like You Mean It: Personal Finance Tactics for the Real World — https://amzn.to/3g9bT7Q
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
'An Intertemporal Capital Asset Pricing Model' — https://www.jstor.org/stable/1913811
'Risk and Return of Value Stocks' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=112553
'The Value Premium' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=351060
'A Consumption-Based Explanation of Expected Stock Returns' — https://repository.upenn.edu/cgi/viewcontent.cgi?article=1146&context=fnce_papers
'Who Are the Value and Growth Investors?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2426823
'Is There a Replication Crisis in Finance?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3774514
'Amazon Becomes World’s First Public Company to Lose $1 Trillion in Market Value' — https://www.bloomberg.com/news/articles/2022-11-09/amazon-hits-unwelcome-milestone-with-1-trillion-in-value-lost?leadSource=uverify%20wall
Listen to all your favourite podcasts with AI-powered features
Listen to the best highlights from the podcasts you love and dive into the full episode
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
Listen to all your favourite podcasts with AI-powered features
Listen to the best highlights from the podcasts you love and dive into the full episode