In this episode, Mark talks about SMAs, which have the greatest control and knowledge with what is happening in your portfolio. He also talks about the “inflated market” - on a valuation basis it is NOT inflated, and VIX, the Volatility Index, which gages the markets volatility. Many will use it as a hedging tool against the stock market. Mark also discusses businesses that Nepsis is invested in and about how BAIDU performed over the lat 10 years. In "Headline vs the Bottom Line", he discusses: Are bonds safer than stocks? People focus more on the stock market than they do on the bond market and the investor thinks about risk in the sense of volatility. Investing is about risk adjusted return. But what about interest rate risk? Or inflation risk? Are bonds safer than stocks? On what terms and at what price am I buying this investment? People do not know what they are paying for in the underlying investment. Interest income is taxed at ordinary income. The bottom line is, inflation risk and purchase power risk and there's volatility with risk. No one stock should make or break your portfolio; every position working together is what makes a portfolio strong.
July 27, 2017