Well, that certainly was a pleasant surprise, including Jimmy’s unexpected appearance and Andy’s magic trick with the glasses at 11:18. 😉
See you soon, in two weeks’ time!
I’m eager to learn about your thoughts on foreign diversification.
For EU investors looking for an alternative to VTI, I found the $MXUS accumulating index to be the best by Invesco. It uses the MSCI USA index which indexes ~600 of large and midcaps. It’s good enough. You could supplement small-caps but I want to keep things simple.
Nick, could you please confirm my understanding of the TIPS advantage over nominals? Your expectation is that with current yields TIPS are likely to outperform nominals of equal duration since inflation will probably be higher than is currently priced in bond yields?
They offer optionality. They will lose far less if rates rise and will make less if rates fall, but should have a higher payout over time. Basically less risky and if inflation rises or remains sticky they will offer a better, safer return over time.
You have spoken in the past about users having the option to lever up the portfolio. For certain ETFs such as SPY and QQQ that seems relatively straightforward, as one can use call options or call spreads to achieve any desired level of leverage. You have also talked about the need to keep anti-growth and growth assets balanced, and I take this to mean that if we lever up in equities we need to lever up in bonds, tips, GLG, GLD, etc, such that the overall exposure to the various parts of the portfolio remains the same relative to each other. Can you talk about the best method to achieve this? It is unclear to me if using options on these other instruments is the way to do this.
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This was clearly recorded pre-sake.
Wrong. Next morning 🙂
Well, that certainly was a pleasant surprise, including Jimmy’s unexpected appearance and Andy’s magic trick with the glasses at 11:18. 😉
See you soon, in two weeks’ time!
Lovely seeing you all together! Clear messaging.
I’m eager to learn about your thoughts on foreign diversification.
For EU investors looking for an alternative to VTI, I found the $MXUS accumulating index to be the best by Invesco. It uses the MSCI USA index which indexes ~600 of large and midcaps. It’s good enough. You could supplement small-caps but I want to keep things simple.
Nick, could you please confirm my understanding of the TIPS advantage over nominals? Your expectation is that with current yields TIPS are likely to outperform nominals of equal duration since inflation will probably be higher than is currently priced in bond yields?
They offer optionality. They will lose far less if rates rise and will make less if rates fall, but should have a higher payout over time. Basically less risky and if inflation rises or remains sticky they will offer a better, safer return over time.
VTI – 3731 stocks
Indeed. Forgot how many…knew if was a lot 🙂
Plenty of diversification.
You have spoken in the past about users having the option to lever up the portfolio. For certain ETFs such as SPY and QQQ that seems relatively straightforward, as one can use call options or call spreads to achieve any desired level of leverage. You have also talked about the need to keep anti-growth and growth assets balanced, and I take this to mean that if we lever up in equities we need to lever up in bonds, tips, GLG, GLD, etc, such that the overall exposure to the various parts of the portfolio remains the same relative to each other. Can you talk about the best method to achieve this? It is unclear to me if using options on these other instruments is the way to do this.
Hi Mark, this is an important topic and I will post a special update on it tomorrow. I can’t attach a screenshot here, unfortunately.