The Money Scope Podcast
Ep. 7: Portfolio Design & Management
Olivier Chabot's AI podcast notes AI-generated based on their snips
AI-generated based on their snips
1. Choosing a 'good enough' portfolio is common and practical, as truly 'perfect' portfolios are not feasible.
2. Asset allocation should consider not only financial assets, but also human capital.
3. Efficiency and logic are valued in various professions, including engineering and medicine.
4. Control over our business and practice is an illusion.
5. Financial economics relies on historical data for assessing the impact of investment strategies.
6. The risk-return relationship is fundamental to achieving financial objectives.
7. Investment returns can be influenced by people's behavior.
8. Global diversification in a portfolio is important to manage risk and expected return.
9. Costs, taxes, and local consumption hedging are important considerations when thinking about home country bias.
10. The stock bond correlation has been largely negative since the early 2000s.
11. The stock-bond ratio is a crucial asset allocation decision.
12. Experiencing a bear market can provide valuable insights into one's risk tolerance.
13. Choosing asset allocation is not about perfection, but about getting close and making adjustments.
14. Rebalancing your investment portfolio is crucial to avoid a major drop in the value of your investments at the time when you need the money.
15. When the portfolio deviates more than five percent from the target, it may be time to rebalance.
16. An optimal rebalancing frequency for a 60/40 stock-bond portfolio is once per year.
