Professor Itzhak Ben-David, expert on ETFs, discusses the current state of the ETF market, Morningstar ratings, mind-blowing hedge fund fee data, correlations between miscalibrated CFOs and overconfidence, unnecessary mental accounting with tax refunds, and more.

The podcast discusses the expected cost of pessimism in financial decisions, potential solutions to counteract it, and the value of storytelling in communication and financial advice. They also touch on the risks and benefits of using a tax-free savings account for investment and the role of psychologists in financial advice. The episode includes a new segment called 'Mark's Minutes' and updates on events and merchandise.

Prof. Cass Sunstein, founder of the Program on Behavioral Economics and Public Policy at Harvard Law School, discusses decision-making. Topics include second-order thinking, delegation vs algorithms, transformative decisions, preferences for seeking information, biases in belief updating, maximizing well-being, and the differences between manipulation and nudges.

In this episode, we tackle the timely topic of higher interest rates and their potential impact on investors' decisions. With rates soaring to unprecedented levels, many are tempted to veer off their investment paths in pursuit of short-term gains. But is this a rational choice? We break it down and offer invaluable insights into why staying the course might be the wiser option. We also welcome new PWL team member Mark McGrath. Mark possesses an innate talent for crafting concise, valuable, and captivating financial planning nuggets on social media. His content has struck a chord with the audience, evident from his rapidly expanding following. Next, we take a nostalgic trip back to one of our favourite past episodes, featuring a remarkable guest, David Booth, co-founder of Dimensional Fund Advisors. With a quick review of the episode, listeners get a refresher on Booth's sage advice and investment philosophies, reminding us all why this episode remains a standout. For the book segment, Michael Tremblay, a passionate listener, and stoicism expert, reached out to suggest an exploration of The Handbook of Epictetus. We welcome Michael to the show for an enlightening discussion on the principles of stoicism and how they can be applied to investing and everyday life.   Key Points From This Episode:   Introducing new PWL team member, Mark McGrath. (0:02:22) Background about Mark and his journey to PWL Capital. (0:03:35) What Mark appreciates most about working at PWL: its core values. (0:08:45) Why cash is an extremely risky long-term investment option. (0:11:47) We explore ‘buying the dip’ and expected returns versus return expectations. (0:24:31) Highlights and key takeaways from our conversation with David Booth. (0:29:07) The Handbook of Epictetus and devoted listener Michael Tremblay's background. (0:31:22) Stoicism basics, who Epictetus was, and the key idea behind the philosophy. (0:33:30) How stoicism can benefit everyday investors. (0:36:09) A breakdown of the various ‘tools’  and practices The Stoics developed. (0:39:26) Similarities Stoicism has with the rational reminder approach to investing. (0:43:07) Making the distinction between what is in your control and what is not. (0:46:16) The role of emotions and death in investing from a Stoicism perspective. (0:47:41) Michael shares his definition of success. (0:53:45) The after-show featuring updates, book recommendations, upcoming guests, and more. (0:55:11)   Quotes:   “PWL as a firm and the podcast specifically have been absolutely formative in how I deliver financial planning and portfolio management advice.” — Mark McGrath (0:06:58)   “Now risky assets, like stocks and bonds, sound risky. We call them risky assets for a reason. But the thing is, in investing, risk is not always a bad thing.” — Benjamin Felix (0:15:09)   “Expected returns matter a lot for long-term investors because they're relying on their assets to generate returns far into the future.” — Benjamin Felix (0:19:39)   “There's this emotional aspect of stoicism, this kind of cool-headedness. And that cool-headedness comes from adopting this growth mindset and adopting this focus on what's in your control.” — Michael Tremblay (0:36:38)   “The right approach to investing is one that is borne out by the facts. It's not driven by a bone to pick.” — Michael Tremblay (0:43:54)   “For Stoicism, what is up to us is exclusively our minds. Exclusively, the choices and decisions that we make.” — Michael Tremblay (0:46:18) Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-265-5-hisa-for-the-long-run-plus-stoicism-with-michael-tremblay-discussion-thread/24716   Book From Today’s Episode: The Handbook of Epictetus — https://amzn.to/3s2k7V4   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on X — https://twitter.com/benjaminwfelix Cameron on X — https://twitter.com/CameronPassmore Michael Tremblay on X — https://twitter.com/_MikeTremblay Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Michael Tremblay — https://www.tremblaymichael.com/ Stoa Meditation Website — https://stoameditation.com Stoa Letter — https://www.stoaletter.com 'Reaching for yield: Evidence from households' — https://doi.org/10.2139/ssrn.4283008 'Crash beliefs from investor surveys' — https://doi.org/10.3386/w22143 'Who should buy long-term bonds?' — https://doi.org/10.1257/aer.91.1.99 'Portfolios for long-term investors' — https://doi.org/10.1093/rof/rfab038 'Presidential address: Discount rates' — https://doi.org/10.1111/j.1540-6261.2011.01671.x 'Long-horizon losses in stocks, bonds, and bills: Evidence from a broad sample of developed markets' — https://doi.org/10.2139/ssrn.3964908  

Pim van Vliet is on a mission to put the low volatility factor on the map. In his role as Head of Conservative Equities and Chief Quantitative Strategist at Robeco, he focuses on leveraging the effect of low-risk investing. Pim has also published a book, High Returns From Low Risk: A Remarkable Stock Market Paradox, where he unpacks some of the key aspects that guide his work and underpin his success. During this conversation, Pim shares his insights on volatility, the changing market, and combining low-risk with other traditional factors. He equips listeners with key considerations for evaluating strategies or products when allocating low-risk and offers his perspective on out-of-sample-testing, distinguishing between global-factor and cross-sectional premiums, and more. Listeners will get Pim’s perspective on the pros and cons of the Sharpe ratio, and we examine risk-adjusted returns on long and short legs before hearing his Fama-French Five Factor Model analysis. We touch on inflation and gold, and finally, Pim shares his inspiring perspective on success in his financial and personal life. Tune in today to hear more!    Key Points From This Episode:   Introducing Pim Van Vliet and his mission to put low volatility on the map as a factor. (0:00:41) Defining the low-risk effect with reference to volatility and its impact on other asset classes. (0:04:47) Low-risk portfolio performance in relation to the changing market. (0:12:02) Combining low-risk with other traditional factors. (0:21:43) Considerations for evaluating strategies or products when allocating low-risk. (0:24:35) Out-of-sample testing. (0:31:28) Distinguishing between global factor premiums and cross-sectional premiums. (0:35:18) Weighing the pros and cons of the Sharpe ratio as an evaluation tool. (0:40:19) Examining the risk-adjusted returns of long and short legs. (0:41:20) Issues with the Fama-French Five Factor Model. (0:44:37) Why factor premiums vary through inflation regimes. (0:50:41) How an allocation to gold holds up as a downside hedge. (0:52:53) Pim’s definition of success in his life. (0:56:31)   Links:    Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-264-pim-van-vliet-the-volatility-effect-revisited-discussion-thread/24622 Book From Today’s Episode: High Returns From Low Risk: A Remarkable Stock Market Paradox — https://amzn.to/3rMkJxQ Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.  Rational Reminder Website — https://rationalreminder.ca/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Pim van Vliet on Twitter — https://twitter.com/paradoxinvestor Pim van Vliet — http://www.paradoxinvesting.com 'The Volatility Effect' — https://www.robeco.com/files/docm/docu-the-volatility-effect-2007.pdf 'The Volatility Effect Revisited' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3442749 'Ten Things You Should Know About Low-Volatility Investing' — https://www.robeco.com/en-int/insights/2017/07/ten-things-you-should-know-about-minimum-volatility-investing 'The Conservative Formula: Quantitative Investing Made Easy' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3145152 'Media attention and the volatility effect' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3403466 'When Equity Factors Drop Their Shorts' — https://www.robeco.com/en-int/insights/2021/02/when-equity-factors-drop-their-shorts 'The Cross-Section of Stock Returns before CRSP' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3969743 'Global factor premiums' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3325720 'Investing in Deflation, Inflation, and Stagflation Regimes' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4153468 'Five Concerns with the Five-Factor Model' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2862317 'The golden rule of investing' — https://www.robeco.com/en-int/insights/2023/04/the-golden-rule-of-investing

With the recent passing of Harry Markowitz, we wanted to take this opportunity to spend some time honoring this giant of financial economics. Joining us on today's episode is our friend Alex Potts, who shares some of his touching memories of Harry, and talks about the unmistakable impact he had on the field. Harry is commonly viewed as the father of modern portfolio theory but also might be considered the grandfather of behavioural finance and a huge proponent of intelligent diversification. Alex graciously shares the nine lessons he learned from Harry, a few 'Harryisms' and some fond and surprising anecdotes from the time he spent with the man. Following this, we welcome Edward Goodfellow to the show to explore his new book, 7 Steps to A Better Portfolio. Edward is a fellow Canadian financial advisor, and we get to hear from him about the motivations for his book, its intended audience, and his insight into a host of central and familiar themes that we deal with on the show, so join us to hear it all.    Key Points From This Episode: Looking back on the irreplaceable contributions of Harry Markowitz. (0:05:24) Alex talks about reaching out and meeting Harry in 2010. (0:10:00) Harry's amazing work ethic, unusual approach to problem-solving, and the nine lessons that Alex learned from him. (0:14:23) Edward shares his motivations for writing 7 Steps to A Better Portfolio, the questions that gave it structure, and its intended audience. (0:25:53) Understanding math and emotion, the four questions to ask before investing, and dangerous investment personalities and influencers. (0:29:39) Categorizing the different types of risk we encounter as investors, and the role of predictions and expectations. (0:35:41) Charting the evolution of a strategy over time, how to reassess and determine risk tolerance, and evaluating performance. (0:38:06) Edward describes different types of active and passive investing and the seven steps from his book. (0:40:26) Comparing financial science and active management research, and how to manage strategy risk. (0:49:42) How Edward looks at the value of financial advice and his biggest takeaway from writing the book. (0:52:58) The best way to approach figuring out the contradictions in the world of finance. (0:54:24) Today's after-show featuring listener reviews, community updates, and future episode guests. (0:56:20) Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-263-a-tribute-to-harry-markowitz-with-alex-potts-7-steps-to-a-better-portfolio-with-edward-goodfellow-discussion-thread/24528 Book From Today’s Episode: 7 Steps to A Better Portfolio — http://www.7stepstoabetterportfolio.com/ Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.  Rational Reminder Website — https://rationalreminder.ca/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Alex Potts — https://buckinghamstrategicwealth.com/people/alex-potts Edward Goodfellow — https://www.pifinancialcorp.com/advisor/edward-goodfellow

Household finance has grown considerably as a field of study in recent years. And with the decrease in defined benefits pension plans, households are increasingly needing to take more responsibility for their own financial fates (much more so than they needed to in the past). Joining us today to discuss household finance and the growing importance of households in the economy, is Professor Francisco Gomes. Francisco is a Professor of Finance at London Business School and earned his PhD in economics at Harvard with his main areas of expertise being household finance, capital markets, asset allocation, and macroeconomics. In our expansive conversation with Francisco, we discuss the increasingly important role of households in the economy, how this has contributed to household finance becoming a more prominent field of study, and what can be done to make sure that academic findings reach, and positively impact, households. Francisco shares a detailed outline of what he’s learned from his research, covering topics like level of education, automation at work, peer effects, and culture, with explanations of how these elements can impact household financial decisions. We also learn about his passion for financial literacy, why he is such a big proponent of ensuring that everyone has access to a quality personal finance education, and the personal finance course he currently teaches at London Business School. To learn more from Francisco about the study of household finance and how to improve outcomes for households, be sure to tune in today!   Key Points From This Episode:   What it means to maximize your wealth over your lifetime and the crucial ratio determining optimal asset allocation. (0:02:53) How optimal asset allocation changes over your life cycle and how our human capital diminishes with age. (0:08:08) Building a buffer stock of wealth and the evidence that people become more comfortable with risk as they get richer. (0:10:03) The importance of simplifying life cycle asset allocation models to help households make decisions and have a tangible impact on people’s lives. (0:16:28) The biggest gap between theory and what households do; not investing in stocks. (0:20:32) An overview of the biggest mistakes people make when they invest in stocks and why it ties back to financial literacy. (0:23:49) How the process of optimizing asset allocation changes at retirement, the importance of hedging longevity risk, and why annuities are so useful. (0:25:40) A rundown of some of the reasons behind why annuity uptake is so low and why it is often referred to as the annuity puzzle. (0:29:20) The impact of automation in the workplace on household wealth accumulation and how exposure to automation is measured. (0:35:02) How one’s level of education affects the interaction between automation and wealth and how households should respond to automation at work. (0:38:12) Lessons from Francisco’s research for households thinking about the future after a change in their financial situation. (0:45:18) Why household finance has become more prominent as a field of study in recent history and what economists need to do to ensure their findings positively impact households. (0:47:30) How culture can influence household financial behaviour and the evidence that people learn from their peers. (0:50:47) Insights into the potential for financial advice to improve the finance of households and why Francisco is such a big proponent of personal finance education and financial literacy. (0:52:35) Learn about Francisco's personal finance course at London Business School and what he’s most excited about in his upcoming research. (0:54:01) Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-262-francisco-gomes-consumption-and-portfolio-choice-over-the-life-cycle-discussion-thread/24433   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.  Rational Reminder Website — https://rationalreminder.ca/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. Francisco Gomes on Twitter — https://twitter.com/Franc_J_Gomes Prof. Francisco Gomes — https://sites.google.com/view/francisco-gomes/home 'Optimal Life-Cycle Investing with Flexible Labor Supply: A Welfare Analysis of Life-Cycle Funds' — https://www.jstor.org/stable/29730037 'Consumption and Portfolio Choice over the Life Cycle' — https://academic.oup.com/rfs/article-abstract/18/2/491/1599892?redirectedFrom=fulltext ' Portfolio Choice Over the Life Cycle: A Survey' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3744669 'Longevity risk, retirement savings, and financial innovation' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X11002339 'Stock Market Participation and Portfolio Shares Over the Life Cycle' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3808350 'Optimal Life-Cycle Asset Allocation: Understanding the Empirical Evidence' — https://www.jstor.org/stable/3694770 'Do Robots Increase Wealth Dispersion?' — https://academic.oup.com/rfs/advance-article-abstract/doi/10.1093/rfs/hhad050/7192998?redirectedFrom=PDF 'Evidence on Expectations of Household Finances' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3229980 'Household Finance' — https://www.aeaweb.org/articles?id=10.1257/jel.20201461

Our focus for today's episode is the topic of structured products and we welcome two expert guests to weigh in with their research and insight on the subject. Felix Fattinger is an Assistant Professor of Finance at the Vienna Graduate School of Finance whose research focuses on complexity from a number of perspectives. Petra Vokata is an Assistant Professor of Finance at Ohio State University, currently working in areas of household finance, financial innovation, and consumer financial protection. Both Felix and Petra offer some amazing takeaways for retail investors, deftly balancing the data with their ability to read it and implement the lessons we should learn about structured products. We then welcome Jill Schlesinger back to the show to talk about her new book, The Great Money Reset. We hear from her about the process of writing the book, her aims for its publications, and the main questions it can help individuals answer.  Felix Fattinger thanks his co-authors Marc Chesney, Jonathan Krakow (both University of Zurich) and Simon Straumann (WHU – Otto Beisheim School of Management).   Key Points From This Episode:   Felix talks about his interest in complexity and how to understand the three different types of structured products. (0:07:23) The definition of headline rates and their relationship to expected returns. (0:18:23) Laying out the biggest lessons from Felix's research; price competition regulation, expected returns, and simulating portfolios. (0:32:21) Petra shares her reasons for researching structured products and what she focuses on. (0:40:36) The doubts Petra has about YEPs, the evolution of their fee structure, and estimating their expected returns. (0:49:02) The YEP index and how it can help investors mitigate certain issues. (1:02:42) Actions by banks that increase headline rates of return and how this relates to expected returns. (1:06:56) Unpacking the biggest lesson from Petra's research about understanding fees and payoff. (1:10:12) A 60-second recap of Jill Schlesinger's previous episode with us. (1:14:53) Explaining the idea of the 'great money reset' and why Jill's latest book was so much easier to write than her first one. (1:17:22) Jill shares the five steps to go through before a reset and expands on the important considerations. (1:21:33) Tips for negotiating with your boss and final thoughts on approaching a financial reset. (1:32:04) Today's after-show; recent time off, listener reviews, community and event updates, and a song from RootHub. (1:41:22)   Links From Today’s Episode:   Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Felix Fattinger — https://www.wu.ac.at/en/finance/people/faculty/felix-fattinger-1/ Petra Vokata — https://petravokata.com/ Petra Vokata on Twitter — https://twitter.com/vokataa Jill Schlesinger — https://www.jillonmoney.com/ Jill Schlesinger on Twitter — https://twitter.com/jillonmoney The Great Money Reset — https://www.amazon.com/Great-Money-Reset-Change-Wealth-ebook/dp/B09Y44ZJXT Episode 67 with Jill Schlesinger — https://rationalreminder.ca/podcast/67 Jill on Money Podcast — https://www.jillonmoney.com/podcasts The Dumb Things Smart People Do with Their Money — https://www.amazon.com/Things-Smart-People-Their-Money/dp/0525622179 Neil Pearson — https://giesbusiness.illinois.edu/profile/neil-pearson Episode 236 with Harold Geller — https://rationalreminder.ca/podcast/236 Episode 102 with Brian Portnoy — https://rationalreminder.ca/podcast/102 Future Proof — https://futureproof.advisorcircle.com/ The Most Hated F-Word Podcast — https://themosthatedfword.com/ RootHub — https://www.roothub.com/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on Twitter — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Today we welcome James Choi, Professor of Finance at the Yale School of Management, to the show to share some of his insight into what he has dubbed practical finance. James has focused his research on behavioural finance, behavioural economics, household finance, capital markets, health economics, and sociology, and is turning this expertise into pragmatic knowledge marketed towards ordinary people. This reframing and reconfiguration of the theory for all people and the decisions they make, could not be more in line with what we are trying to do here at Rational Reminder, and this conversation with James was packed with so many surprising and informative responses to relatable questions. We ask James about index funds, the benefits of advisors, optimal equity, diversification, and much more. We also spend a little bit of time exploring the individual reasons that people have for their decisions, with James expanding on the disconnect between people's philosophy and their actions. Further topics include the role and impact of education, renting versus buying, and the formulation of his concept of practical finance, so make sure to join us and catch it all.   Key Points From This Episode:   The failure of economic theory to explain everyday financial decisions. (0:03:03) A little about James' course on personal finance at Yale. (0:06:29) Economic theory and popular personal finance advice on optimal savings and consumption. (0:12:06) Looking at economic theory and popular personal finance's suggestions about optimal equity allocations for households. (0:19:33) The kinds of personal aversions people have towards their finances. (0:27:07) The impact that James' survey research has had on his perspectives on equity. (0:29:42) Practical application of economic theory to household decisions. (0:32:29) Increased awareness of the benefits of index funds. (0:42:59) James shares a few famous economists' investment strategies. (0:44:11) Some thoughts on approaches to and avoidance of diversification. (0:45:48) Differentiating between mistakes and unique behaviours we cannot justify. (0:52:26) The efficacy of education, financial advice, and personal experience in improving investment decisions. (0:55:44) Liquid and illiquid assets and renting versus buying property. (1:02:26) James talks about his excitement around his current work in practical finance. (1:07:50) How James defines success at this point in his life. (1:09:52) Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-260-prof-james-choi-practical-finance-discussion-thread/24227   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.  Rational Reminder Website — https://rationalreminder.ca/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore James Choi — https://faculty.som.yale.edu/jameschoi/ 'Behavioral Household Finance' — https://www.hbs.edu/ris/Publication%20Files/behavioral_household_finance_a3b33098-e0c7-40e0-bf2f-fa4ceb6e6d06.pdf 'Finance for the Rest of Us' — https://www.linkedin.com/posts/james-j-choi-finance_finance-for-the-rest-of-us-activity-6997910789097414656-5epq/?originalSubdomain=ba 'Popular Personal Financial Advice versus the Professors' — https://www.aeaweb.org/articles?id=10.1257/jep.36.4.167 'Millionaires Speak: What Drives Their Personal Investment Decisions?' — https://www.nber.org/papers/w27969 'What Matters to Individual Investors? Evidence from the Horse's Mouth' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12895 'Are Empowerment and Education Enough? Underdiversification in 401(k) Plans' — https://www.jstor.org/stable/3805120 'Why Does the Law of One Price Fail? An Experiment on Index Mutual Funds' — https://www.nber.org/papers/w12261 '$100 Bills on the Sidewalk: Suboptimal Investment in 401(k) Plans' — https://www.nber.org/papers/w11554

Join us as we present a compilation of segments on expected returns and the dynamics that shape investment outcomes. We deep dive into the world of financial predictions and gain a comprehensive understanding of how expected returns influence your financial decision-making. We also go back to the episode with Dr. Brian Portnoy where we delved into his book, The Geometry of Wealth. Lastly, joining our conversation is our colleague Matt Gour who discusses The Power of Moments by Chip and Dan Heath. We discuss how extraordinary moments have the power to shape our lives and the pivotal importance of crafting unforgettable experiences. Tune in now!   Key Points From This Episode:   What Pressor Fama had to say about expected returns. (0:03:35) Looking at returns through a historical lens with Professor Goetzmann. (0:08:23) Professor Cederburg explains the usefulness of historical data. (0:11:38) Hear Professor Cochrane’s perspective on expected returns. (0:15:19) Professor Cornell shares his contrasting view on historical returns. (0:23:41) We recap our discussion with Professor French about uncertainty. (0:34:23) Breaking down the conventional viewpoint of uncertainty with Professor Pastor. (0:38:34) A brief overview of our approach to estimating expected returns. (0:44:03) Highlights from our conversation with Dr. Brian Portnoy about his book. (0:47:56) Matt Gour joins us for our weekly book review of The Power of Moments. (0:51:15) He shares an impactful moment from his childhood. (0:54:04) We unpack a main takeaway from the book: the peak-end rule. (0:56:23) The four elements needed to create a defining moment. (0:57:51) Learn about the different types of defining moments. (1:01:02) How to be deliberate about creating powerful moments. (1:01:02) Main takeaways from the book. (1:04:55) The aftershow, planned meetups, upcoming projects, and more. (1:07:15)   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-259-comprehensive-overview-estimating-expected-returns-discussion-thread/24077 Book From Today’s Episode: The Geometry of Wealth: How to shape a life of money and meaning — https://amzn.to/46qpjl5 The Power of Moments: Why Certain Experiences Have Extraordinary Impact — https://amzn.to/3pmYJJb Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.  Rational Reminder Website — https://rationalreminder.ca/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Nick Maggiulli on Instagram — https://instagram.com/nickmaggiulli Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore 'Financial Planning Assumptions for Market-Cap Weighted and Factor Tilted Portfolios – Methodology Guide' — https://www.pwlcapital.com/resources/financial-planning-assumptions-for-market-cap-weighted-and-factor-tilted-portfolios-methodology-guide/  Episode 38: Feelings in the Decision Making Process — https://rationalreminder.ca/podcast/38 Episode 92: Dr. Moira Somers and Dave Goetsch — https://rationalreminder.ca/podcast/92 Episode 100: Professor Kenneth French — https://rationalreminder.ca/podcast/100 Episode 102: Dr. Brian Portnoy — https://rationalreminder.ca/podcast/102 Episode 124: Professor Lubos Pastor — https://rationalreminder.ca/podcast/124 Episode 151: Professor Brad Cornell — https://rationalreminder.ca/podcast/151 Episode 169: Professor John Cochrane — https://rationalreminder.ca/podcast/169 Episode 189: Regret (and How to Read More w/ Neil Pasricha) — https://rationalreminder.ca/podcast/189 Episode 200: Professor Eugene Fama — https://rationalreminder.ca/podcast/200 Episode 224: Professor Scott Cederburg — https://rationalreminder.ca/podcast/224 Episode 248: Professor William Goetzmann — https://rationalreminder.ca/podcast/248