The Rational Reminder Podcast

In Episode 16 of the Rational Reminder Podcast we talked about the following: How bad was last week’s market volatility? Should you make changes to your portfolio in this market? Are people better at predicting when markets are volatile? How the market prices securities The economy vs. the stock market When do bear markets typically occur? Will passive investing exacerbate the next correction? Do index funds affect price discovery? The power of capitalism Index reconstitution Risk over the long-term Quant investing does not always pass robustness tests 50% of business is marketing Devil’s in the HML details Dimensional has thought of everything   The charts that we talked about:   For more information or to contact Cameron and Ben, visit pwlcapital.com

In Episode 15 of the Rational Reminder Podcast we recapped our time at the Dimensional Fund Advisors advanced conference. We recapped the following:   Eugene Fama The history of the University of Chicago and Dimensional Connecting economics with academia Behavioral finance is a branch of efficient markets (according to Fama) Crunching data for the first time Starting the first index fund – before Vanguard Volatility lessons Black swans Do you need a tstat of 3 in today’s world?   We referenced this paper https://www.cfapubs.org/doi/pdf/10.2469/faj.v74.n3.6 For more information or to contact Cameron and Ben, visit pwlcapital.com 

In Episode 14 of the Rational Reminder podcast we were joined by Martin Parizeau, a retired banking executive with extensive knowledge of Canadian consumer debt, and a PWL client. We discussed the following:   The start of the ETF boom When proponents of active management realize they should index Cutting wasteful expenses without sacrificing happiness Pulling off a successful downsizing Housing is not an investment The real cost of owning a home Defining the ideal lifestyle Digging into Canadian consumer debt levels The real debt to income ratio for debtors in Canada Is mortgage debt always “good” debt? The rising cost of debt and its effect on the economy Credit card rates are justified Choosing the right credit card Never pay an annual fee on a credit card The boom-bust lending cycle Bankers saw the financial crisis coming, but had to keep going Focusing on the things that you can control   Ottawa Citizen article from Sunday, March 3, 2002 mentioned in this podcast.     For more information or to contact Cameron and Ben, visit pwlcapital.com

In Episode 13 of the Rational Reminder podcast we discussed the following:   Getting into the DFA advanced conference Cancelling whole life insurance When permanent insurance makes sense Unaffordable housing in Canada Housing bubbles? Bridging the gap with a HELOC Undervalued financial advice Money does not buy happiness Defining a lifestyle Walking to work Active funds are still underperforming Missing out on the best stocks   The Stories we talked about:   HOUSING TRENDS AND AFFORDABILITY UBS Global Real Estate Bubble Index It’s officially normal to have a big, fat balance on your line of credit Stock Pickers Struggle to Beat Index Funds Once Again   For more information or to contact Cameron and Ben, visit pwlcapital.com

In Episode 12 of the Rational Reminder podcast we were joined by Doug McKenzie, an executive at a large US financial institution, and a PWL client. We discussed the following:   Attacking a retirement goal Managing expenses before retirement Toronto real estate in a retirement plan Living (and working through) the financial crisis The Investor’s Group Dividend Fund Income investing Robo advisors Using prepaid credit cards for budgeting CCP vs. CPM vs. DFA Running regressions Data sources Come From Away The value of knowledge and advice   For more information or to contact Cameron and Ben, visit pwlcapital.com

In Episode 11 of the Rational Reminder podcast we discussed the following:   Are DIY investors responsible for their actions? Starting a blog Switching from stock picking to index funds Managing behaviour The 4-minute portfolio When does it make sense to optimize? Index fund rebuttals Fee-only vs. fee-based advice Choosing a conflict of interest Robb’s biggest beef with Canadian financial services Trusting the bank VGRO vs. robo advisors One-fund retirement portfolios We were joined by Robb Engen, author of the Boomer and Echo blog.   For more information or to contact Cameron and Ben, visit pwlcapital.com

In Episode 10 of the Rational Reminder podcast we discussed the following:   Grass fed beef The benefits of independence The Ontario government wants to keep the deferred sales charge (DSC) DSC back in the day The old financial advice model DIY investors are responsible for their decisions 1/3 of people say money is their biggest stressor Locus of control A better way to invest responsibly   The stories that we talked about:   Investment industry stunned as Ontario opposes proposed ban on mutual fund early-withdrawal fees Ontario’s Ford government is shamefully backing the investment industry over investors Advocis Welcomes Statement from Minister Fedeli Controversial commissions: DIY investors fight back against trailer fees How We Really Feel About Money, in a Few Simple Graphs Busting the RI performance myth Responsible/ESG investing   For more information or to contact Cameron and Ben, visit pwlcapital.com

In Episode 9 of the Rational Reminder podcast we discussed the following: Being a poor grad student Budgeting Stuff does not make you happy Mental overhead is a real cost The Globe’s Financial Facelift disaster Rob Arnott’s slam of Dimensional Are people afraid of stocks? The 10-year anniversary of Lehman’s fall Stories from the financial crisis Volatility in dollars vs. percentage points Automated rebalancing My uncle told me to buy weed stocks What does a rational investor worry about?   The stories we talked about: Great savers, not so great at investing Psychic Trauma How the Financial Crisis Still Affects Investors   The chart we talked about:   For more information or to contact Cameron and Ben, visit pwlcapital.com

In Episode 8 of the Rational Reminder podcast we discussed the following: Fidelity’s 0% MER index funds are already at $1 billion When costs are 0%, how do you pick a fund? Indexing is not a passive investment strategy Index construction and product implementation > low fees A three factor regression on the Manulife Multifactor ETFs Indexing is still a tiny part of the market Not all factors belong in a portfolio Dividend investing shouldn’t be so controversial Dividends are not a spending rule Financial experts don’t sound like experts to non-experts Sell everything!   The stories we talked about: Fidelity Zero-Fee Funds Lure About $1 Billion in First Month Infographic: Three myths related to indexing What Does it Mean to be a Financial Expert?   The charts we talked about: Image Source: Vanguard     For more information or to contact Cameron and Ben, visit pwlcapital.com  

In Episode 7 of the Rational Reminder podcast we discussed the following: Ottawa home prices The longest bull market in history What goes up does not have to come down All time highs are normal and should be expected Is the market overvalued? Even the CAPE only explains 40% of future return differences Should you dollar cost average or invest in a lump sum? Your better off in the market than trying to time the market Was WEED an obvious buy at $2.00? There are still plenty of public companies to invest in Small cap returns need to be taken in context Bad behaviour is not always easy to spot The stories we talked about: The longest bull run in history comes with a jumbo-sized asterisk All time highs are normal What if investing right before a market crash isn’t that bad? Is Now the Best Time to Invest? With Constellation Deal, Canopy Has the Chance to Be Google of Pot The Stock Market Is Shrinking. That’s a Problem for Everyone.   The charts we talked about: Image source: Dimensional Fund Advisors Image source: Ben Felix, PWL Capital   For more information or to contact Cameron and Ben, visit pwlcapital.com