In this episode, Mark talks about volatility. You hate volatility, but you want a computer to make your decisions… but the computer is causing the volatility! He introduces SMArt investing! Where are the markets gonna go? It's fairly valued, maybe slightly over valued. Most of the time money managers invest in companies on future earnings potential, not current earnings. He talks about dollar cost averaging - a great example is your 401k contributions. As you’re buying more over time the value of the investment keeps going up. Compound interest is paramount to investment success. Investors are significantly underweight in emerging markets and international markets and have been extremely poor performers relative to the US.
April 19, 2017