The Rational Reminder Podcast

The discussion begins with the need for calm during stock market volatility. Historical resilience of markets is highlighted as a key to understanding downturns. There's insight into why bonds may not be the best for returns. They examine the proposed Alberta Pension Plan and reflect on influential guests who have shaped their investment strategies. The debate between Dimensional Fund Advisors and Vanguard is revisited, alongside the complexities of financial planning for business owners. Personal reflections on semi-retirement underscore the importance of family over work.

Jessica Moorhouse, a money expert and bestselling author, shares her insights on the emotional underpinnings of personal finance. She explains the crucial differences between financial planners and counselors, highlighting the importance of empathy. Jessica discusses how early money memories shape our financial habits and the role of shame in decision-making. The conversation also examines the impact of trauma on financial behavior and emphasizes the need for introspection to foster healthier money management.

Dive into the fascinating history of Dimensional Fund Advisors and Vanguard, two titans in the asset management world. Uncover the birth of index funds and why Vanguard's innovative strategies reshaped investing. The discussion moves to the intricacies of multi-factor models and the vital role of diversification in portfolio management. Alongside practical investment insights, hear an uplifting personal update reflecting resilience in the face of health challenges, showcasing the human side of financial advising.

Scott Cederburg, Associate Professor of Finance at Eller College, returns to address lifecycle investment strategies. He critiques traditional beliefs about domestic versus international investments and highlights the advantages of an all-equity portfolio with higher international exposure. Cederburg discusses how US market trends influence global allocations and the necessity of dynamic asset allocation. He also examines the impact of smaller countries in investment analysis and the complexities of market correlations, emphasizing the need for tailored approaches in retirement strategies.

In a lively AMA session, the hosts debate factor investing versus market cap-weighted portfolios, revealing their differing perspectives. They dive into the psychological challenges investors face, emphasizing the importance of decision-making strategies. Retirement planning gets reexamined with a critique of the 4% rule, promoting personalized withdrawal strategies instead. The conversation also covers managing corporate cash reserves and the role of bonds, all while sharing humorous anecdotes about childhood memories of inflation and childhood traditions.

Join economist Andrew Barclay, a senior analyst at Statistics Canada, as he unpacks the intricate world of inflation measurement. Discover why personal costs often feel higher than official inflation numbers. Andrew reveals the complexities behind the Consumer Price Index (CPI), the challenges of measuring housing costs, and the impact of consumer behavior shifts, especially post-pandemic. He also addresses skepticism surrounding government data and emphasizes the importance of accuracy and transparency in understanding inflation.

Discover why low-cost index funds could be the ultimate investment strategy for most individuals. The hosts break down the evolution of index funds and their substantial advantages, including lower fees and consistent performance. They tackle the common pitfalls of active management and reveal studies showcasing the long-term benefits of a globally diversified portfolio. Additionally, personal health updates and community interactions add a relatable dimension to the conversation, emphasizing the importance of financial education and informed decision-making.

Join Hendrik Bessembinder, a finance professor at Arizona State University, as he uncovers why most stocks underperform Treasury bills. He reveals that a small number of stocks drive the majority of market returns, challenging traditional investing strategies. Listen in as he discusses the role of skewness, the complexities of mutual fund performance, and common investing mistakes. Learn how chasing past returns can lead to costly errors, and discover effective strategies for building a robust portfolio that endures market fluctuations.

Dive into the investment implications of Bitcoin's past performance and its role in modern portfolios. Explore the nuances of market efficiency, especially in corrupt environments. Discover the game-changing concept of return stacking for individual investors. The hosts delve into the relevance of valuation metrics like the Shiller PE ratio and whether leveraging portfolios is beneficial. They also discuss ETF strategies and how behavioral finance impacts long-term wealth-building decisions.

Cameron sits down with Michael Mauboussin, Head of Consilient Research at Counterpoint Global and an adjunct professor at Columbia Business School. They delve into the essential job of equity investors, discussing how market expectations can shape valuation outcomes. The importance of intangible assets in investing is highlighted, as well as the shift in private equity landscapes. Michael challenges traditional views on dividends and examines the implications of index funds on market dynamics, emphasizing the need for a deeper understanding of today’s investment strategies.