In this episode, Mark talks about the Alpha Conference for hedge fund/money managers where they talk about idea and the market. He also talks about indexing and buying index funds (the media has done a good job telling investors to compare their portfolio to the S&P 500) and tax reform, which will stimulate the economy. You never know when the bubble is going to burst. So much money flows into S&P 500 index fund companies. He also talks about PE Ratios - some companies may have high PE ratios because people are banking on future earnings. We're shifting into an environment where active managers will provide more value. Bonds are not great investments, they are beta mitigators. As interest rates go up, banks will make more money because of interest rates. There are different spikes in sectors: do you even know what sectors you’re invested in? “An epic stock market crash is coming” - investors continue to disbelieve the rally. Your portfolio should be allocated in a manner (includes being diversified) based on your investment goals.
September 14, 2017