Entire video from the beginning:
Time Stamp: 04:00
Notes: Non-US exposure: 50% of US company revenues come from international. So no need to add any international index funds.
Notes: Non-US exposure: 50% of US company revenues come from international. So no need to add any international index funds.
Time Stamp: 07:00
Notes: Financial advisors will tell you they can do better than the market because they can't have a business if they tell you the truth that they do worse.
Notes: Financial advisors will tell you they can do better than the market because they can't have a business if they tell you the truth that they do worse.
Time Stamp: 10:45
Notes: To protect you from behavioral mistakes, add a bond position. But, stocks in the long run outperform bonds. Also, if it looks like the market is in an extreme bubble territory (my take on this is if P/E is beyond 30 to 40 for the market) then you can adjust your bond position closer to 50%. When there is a correcting you can bring this back. If you want to try and time. Which you should not do and just ride. (My take: in an IRA account you can do this without a taxable event, in a taxable account he mentions in other interviews that a Total Municipal Bond Market index fund would allow you to make these adjustments without taxable events)
Notes: To protect you from behavioral mistakes, add a bond position. But, stocks in the long run outperform bonds. Also, if it looks like the market is in an extreme bubble territory (my take on this is if P/E is beyond 30 to 40 for the market) then you can adjust your bond position closer to 50%. When there is a correcting you can bring this back. If you want to try and time. Which you should not do and just ride. (My take: in an IRA account you can do this without a taxable event, in a taxable account he mentions in other interviews that a Total Municipal Bond Market index fund would allow you to make these adjustments without taxable events)
Time Stamp: 13:00
Notes: Explaining when stocks (the total market) were close to 40x earning (1999), he readjusted the bond/stock ratio. (Higher bond in this case).
Notes: Explaining when stocks (the total market) were close to 40x earning (1999), he readjusted the bond/stock ratio. (Higher bond in this case).
Time Stamp: 15:00
Notes: But you can't always for-see corrections because in 72/74 stocks were only moderately overvalued before getting down to a greatly undervalued. All stock drops are different.
Notes: But you can't always for-see corrections because in 72/74 stocks were only moderately overvalued before getting down to a greatly undervalued. All stock drops are different.
RSS Feed
