Episode 283: Personality Traits, More Managed Futures And CTA, And Bonus British Economic History
Aug 16, 2023
24:27
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They discuss the impact of personality traits on successful investing, including the Big Five Personality Test. They also analyze a retirement portfolio that incorporates a managed futures fund. The podcast explores the historical performance of the British stock market and explores the impact of technology on society and country dominance.
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Quick takeaways
Having a disagreeable personality trait can be advantageous in successful investing, challenging the conventional notion that agreeableness is essential.
Including a managed futures fund in a portfolio can be beneficial in a risk parity approach, with potential for strong performance and low drawdowns compared to other asset classes.
Deep dives
Importance of Disagreeability Index for Successful Investing
The podcast episode discusses the concept of the disagreeable personality trait and its significance in successful investing. It suggests that being highly disagreeable, as measured by the disagreeability index, can be a critical factor for successful investing. The episode challenges the conventional notion that agreeableness is essential in investing and emphasizes the importance of taking a position and supporting it with objective facts. The host shares personal insights on how being around disagreeable people, like lawyers, has influenced their presentation style.
Managed Futures Fund as a Diversifier in a Risk Parity Portfolio
One of the listeners sent an email discussing the inclusion of a managed futures fund in their portfolio and sought the host's opinion on its potential as a diversifier. The host acknowledges the potential benefits of a managed futures fund in a risk parity portfolio, citing its strong performance and low drawdowns compared to other asset classes. They mention a specific managed futures ETF, CTA, and compare it with other similar options in the market. The host expresses interest in monitoring the performance of CTA and other managed futures funds over time.
The Historical Performance of the British Stock Market and Its Relevance to the US Economy
Another listener's email raises the topic of the US potentially losing its prevailing position in the global economy. To provide perspective, the host examines the historical performance of the British stock market during the decline of the British empire. They explain that the British stock market experienced several booms and busts during its dominance, eventually succumbing to the economic impacts of World War I. The host suggests that for the US to similarly lose its dominance, it would require a significant time span, the rise of other technological powers, and a cataclysmic event. They recommend studying Ray Dalio's principles book for further insights into the rise and fall of dominant countries.
In this episode we answer emails from Mark, Wesley and Tom. We make fun of the host and talk about his personality traits and the Big Five personality test, Wesley's portfolio and the new managed futures fund, CTA, and a question about the historical performance about stocks in Great Britain.