Small Improvements Make a Big Difference

Updates

When working on something new, sometimes it’s easy to fall into the trap of putting off small incremental improvements while holding out for the next big idea. We’ve all been there. Maybe you’re avoiding boring tasks at work while spending all of your energy on something more interesting that probably won’t go anywhere. Perhaps you feel disconnected from other people because of the pandemic but spend your time fantasizing about a future party or thinking about moving rather than simply picking up the phone. And we probably all know someone who likes to talk about saving the environment but who can’t be bothered to pick up the litter in their own back yard.

Thinking big sometimes blinds us to the opportunities around us that are small in isolation but can cumulatively make a big difference.

Me? As a designer at heart, I definitely have a tendency to get caught so deep in new idea exploration that time flies and my everyday to-do list falls behind. But the little details really do matter, and I recently made a couple of small changes that I’d like to point out.

Bookmark Your Portfolio and Share It With a Friend

Updates

Late last year I introduced a fancy new feature called shortcodes that made it possible to save portfolio information. My implementation admittedly pushed the limits of Excel beyond the original design intent, so honestly it wasn’t a huge surprise when it eventually broke after Microsoft changed some things. But while technical constraints forced me to disable the shortcodes for a while, I really like the concept and I’ve never given up on finding a way to make it work.

After a ton of experiments and a lot of trial and error, I’m happy to announce that shortcodes are back! But rather than just resurrecting an old feature, I’ve also been able to finally figure out how to offer a useful site capability that always felt missing.

How to Survive and Make Money in the Matrix

Beginner, Featured

There must be a lot of anti-bond sentiment circulating these days, as my inbox has been lighting up lately with questions about whether bonds still make sense to investors. It started last year when Ray Dalio got on a roll and made a series of rather provocative comments about how he thinks you’d be crazy to hold government bonds and how cash is trash, too. It accelerated as interest rates continued to drop to new lows. And it has reached a bit of an apex as bond returns have taken a pretty decent hit in the last few months. Was he right? Should you sell all your bonds now before it’s too late?

How To Play the Game and Live to Tell the Tale

Beginner, Goals

Unless you’ve been living out in the wilderness for the last few weeks, there’s a pretty good chance you’ve heard about the recent events with GameStop. The idea of everyday people using social media to band together and soak predatory hedge funds makes for a great story, and it has already driven a crazy amount of previously uninterested investors towards exploring what it would take to ride the same wave.

One such inquiry from a good friend was a bit of of a wakeup call. The same person who never before expressed the slightest interest in investing suddenly wants to know how to buy the next potential short squeeze stock he saw people talking about online. This article is not only for him, but also for the many other people new to investing who are wondering the exact same thing.

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Contrary to what you might expect from a guy who writes extensively about low-risk index investing, I’m not going to try to talk you out of it. It’s your money, I’m sympathetic to the underlying motivation that goes way beyond making a quick buck, and some investing lessons are best learned through good old-fashioned experience. But there are definitely some massive risks lurking in the shadows just waiting to take down naΓ―ve investors who may not fully understand what they’re getting into. So if you’re following the GameStop news and considering getting in on the action, here’s how you can do it responsibly without going full Leeroy Jenkins.

A Rewarding Journey Starts With Good Data

Updates

When going on a hike in uncharted territory, even the best weather forecast can be pretty spotty. So to choose whether to wear shorts or heavy snow gear, a rational first step is often to check the historical averages. What’s the typical temperature and precipitation in January? The future may be unknown, but good data can help us make educated decisions.

In that same spirit of wisely preparing for an unknown future by becoming students of history, I spend a lot of time collecting portfolio data from all around the world. The final 2020 numbers are starting to trickle in, so let’s talk for just a minute about what that means.

Own the Financial Field With the Global Market Portfolio

Portfolios

As we patiently wait for updated market data for the new year, it seems like an appropriate time to talk about “the market.” That simple term is tossed around daily in financial circles, but the true meaning is so often misunderstood that it can unfortunately perpetuate a warped viewpoint of asset allocation that leads well-intentioned people down a measurably risky path. So what is the market? And how might educated investors formulate a portfolio that tracks a true global benchmark rather than a small subset of fleetingly popular securities? The answers to those questions can be found in a straightforward but deceptively tricky to pin down asset allocation called the Global Market Portfolio.

Portfolio Roundup: The Fastest Way to Lose Money in 2020

Portfolios, Psychology

The emotional rollercoaster that we all know as 2020 is finally coming to an end, and reflecting on everything that happened I thought it might be interesting to roll up my sleeves and do some serious number crunching. Amid all of the newsworthy events of the past year, the wild financial ride certainly made for an interesting experience for diligent investors. So how did the various portfolios perform over such a volatile financial timeframe? What did the best? What did the worst? And what happened when sterile portfolio theory ran head-first into the brutal COVID-reinforced wall and left bruised investors looking for quick relief from the pain? Let’s jump right in and find out!

Real Talk About Bond Convexity

Updates

It’s not every day that I get an email out of the blue that completely blows my mind, and I have to admit my head is still spinning. Recently I was approached by the team at Cambria to let me know that one of my articles had been selected for Volume 4 of Meb Faber’s “The Best Investment Writing” series. To say it’s an honor doesn’t really do it justice. I’m incredibly excited to have made the cut, and truly humbled to be featured among so many investing heavyweights I admire. Thanks, Meb!

The Charmed Life of a Thankful Investor

Psychology

I first wrote this post three years ago, but it’s one I personally think of often. With all of the stress, struggles, highs, and lows that have been unavoidable facts of life in 2020, I feel compelled to share an old but refreshing perspective that feels appropriate in the moment. Think of it as familiar comfort food for tired financial minds.

Happy Thanksgiving! My sincere hope is that you have much to be thankful for.

-Tyler-

The Most Dependable Way to Defeat Financial Terror

Psychology

Between spooky Halloween decorations, the predictable election anxiety, and a touch of understandable Covid fatigue, is seems fear is on the minds of investors these days. I’ve noticed a distinct uptick in nervous takes from stressed investors worried about everything from low interest rates to high valuations. While families with enough savings and job security to weather the lockdown storm are doing pretty well in the grand scheme of things, the thing about fear is that it’s flexible.

No matter who you are or how confident you feel, I can guarantee you have a pain point tucked away that scares the living daylights out of you. Maybe it’s spiders, heights, or rejection. Or yes, financial loss that delays your retirement or destroys your life goals. Nobody is immune. And many people seem to be sharing concerns that stocks and bonds are about to fall apart and drag their life savings into the dark financial abyss.

But make no mistake — those fears are often quite legitimate! The doomsday analysts may be completely right about the prospects for different assets. Markets shift all the time, and the question is not if but when stocks and bonds give up the ghost. So knowing that the grim financial reaper may be right around the next corner, there are at least three different options for tackling the dreaded unknown.