In this episode of the Sound Financial Bites podcast, host Paul Adams and co-host Cory Shepherd talk about their investment philosophy with highly specific analytics to back up their claims.
The conversation covers the history of the market, volatility, debunking financial industry myths, and the concrete evidence that an academically allocated & globally diversified portfolio provides the strongest and most reliable return over a longer period of time.
What Was Covered
- 2:14 - Why the sky is falling
- 3:20 - The goal of the media
- 4:15 - Global financial doom: Greece and Brexit
- 6:45 - The true story of a potential client & an under-performing 401k
- 8:20 - The key: Academically allocated & globally diversified portfolio
- 11:07 - The irrefutable data of passive investing
- 13:19 - Data & what it really means
- 15:47 - The dot-com boom & the crash in 2008
- 19:00 - Sell high, buy low
- 19:28 - History of the markets up & downs
- 22:00 - Sell high or stay on the bumpy ride?
- 25:00 - Average return after the market decline
- 27:51 - Does the market rise every single year?
- 30:30 - A yo-yo and the staircase
- 31:00 - Review of Sound Financial Bites from Andres in Seattle
“You just have to say to yourself, ‘well, I'm old enough to remember when you guys said one year ago that something was going to completely destroy the market and it didn't, so why is it we should be so worried now?’”
“There are some authors out there that have released books every five years telling you what the next 10 years of the market are going to be, and every one of them has been wrong, and these people had been writing books for 25 years.”
“[The market is] like somebody with a yo-yo and they're walking up a set of stairs. There are times that the yo-yo itself is going to be lower or higher, but slowly over time, the man is walking up the stairs.”
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