Navigating Return Stacking and Portfolio Challenges

As we continue to answer your questions from our most recent AMA, Ben, Mark, and Dan begin today’s episode with Bitcoin and how its value as an investment has changed over the years. Then, after briefly explaining how to find short clips of this podcast online, we discuss why many companies choose not to list directly on the TXS, how to implement factor investing without factor EFTS, the best way to invest if you could only make one EFT investment in your lifetime, and, and understanding buffered EFTs and market-linked GICs. We also cover expected returns in a corrupt market, return stacking for individuals, academia versus real-world applications, and why stock valuations will never be the same as they were in the past. To end, we look at lump sum investing versus dollar-cost averaging, what to remember regarding asset allocation, how we rebalance portfolios here at PWL Capital, and we wish Ben well as he awaits his diagnosis.

Key Points From This Episode:

(0:03:30) Unpacking the value of Bitcoin as an investment; past, present, and future. 

(0:09:58) Why we don’t use YouTube Shorts anymore and how to find our bite-sized clips. 

(0:10:29) Understanding why many companies refrain from directly listing on the TXS. 

(0:11:29) An interlude on how we take care of our bodies. 

(0:14:22) Implementing factor investing without factor ETFs, and Manulife’s multifactor ETFs.

(0:19:21) What we would do if we could only invest in one ETF until retirement.

(0:22:23) Buffered EFTs and market-linked GICs.  

(0:26:15) Market efficiency and expected returns in a low transparency/high corruption market.  

(0:29:50) Whether return stacking is a good idea for individuals, and unpacking leverage. 

(0:40:44) Balancing proven business philosophies with academic thinking. 

(0:47:39) The Shiller PE Ratio; why stock valuations are permanently higher than in the past.  

(0:54:58) Lump sum investing versus dollar-cost averaging. 

(1:00:09) Asset allocation and how to know which assets to sell first. 

(1:04:57) How PWL Capital rebalances client portfolios – an operational perspective. 

(1:10:42) The after show: Testicular cancer and heartwarming reviews. 

Links From Today’s Episode: Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

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

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

Rational Reminder Email — info@rationalreminder.caBenjamin 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/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP 

Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/  

‘Episode 80: A Planning Checklist, Portfolio Concentration, and Leverage’ — https://rationalreminder.ca/podcast/80 

‘Episode 343: How to Choose an Asset Allocation’ — https://rationalreminder.ca/podcast/343

‘Episode 234: Prof. Robert C. Merton: ICAPM, Retirement, and Models in Finance’ — https://rationalreminder.ca/podcast/234  

‘Episode 335: What About Warren Buffett?’ — https://rationalreminder.ca/podcast/335 

‘Episode 202: Antti Ilmanen: The Building Blocks of Long-Run Returns’ — https://rationalreminder.ca/podcast/202  

‘Episode 262: Prof. Francisco Gomes: Consumption and Portfolio Choice over the Life Cycle’ — https://rationalreminder.ca/podcast/262  

‘Dan Bortolotti: Index Investing, ETFs and Financial Planning’ — https://thewealthybarber.com/podcast/dan-bortolotti-index-investing-etfs-and-financial-planning-twb-podcast-9/  

Manulife Investment Management — https://www.manulifeim.com/retail/ca/en 

Dimensional Fund Advisors — https://www.dimensional.com/hk-en/financial-professionals 

Scott Cederburg on LinkedIn — https://www.linkedin.com/in/scott-cederburg-0917b0121/ 

Corey Hoffstein on LinkedIn — https://www.linkedin.com/in/coreyhoffstein/  

We Study Billionaires — https://www.theinvestorspodcast.com/we-study-billionaires/  

Hendrik Bessembinder | ASU Search — https://search.asu.edu/profile/2717225 

Shiller PE Ratio — https://www.multpl.com/shiller-pe 

‘What if You Only Invested at Market Peaks?’ — https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/

Books From Today’s Episode: 

The Only Guide You'll Ever Need for the Right Financial Plan — https://www.amazon.com/Only-Guide-Youll-Right-Financial/dp/1576603660 

Papers From Today’s Episode: 

‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406 

‘Why Not 100% Equities’ — https://ibs-masters.narod.ru/olderfiles/1/asness_100equities.pdf  

‘A Conversation with Benjamin Graham’ — https://www.jstor.org/stable/4477960 

‘Forecasting Stock Returns: What signals matter, and what do they say now?’ — https://fairwaywealth.com/wp-content/uploads/Vanguard-Research-11-30-2014.pdf 

‘Dollar Cost Averaging vs. Lump Sum Investing’ — https://pwlcapital.com/wp-content/uploads/2024/08/Dollar-Cost-Averaging-vs-Lump-Sum-Investing.pdf