Great input. Totally agree

Thanks Paul, impact of SCV is absolutely clear. The second most important thing is WHICH SCV fund or ETF to use. For a person using FIDELITY, which fund/ETF have you found that should be used? FISVX? or would the preference be VBR? (I don't know if it would have a fee as I'm not using Vanguard's platform).

@JoeCoz17

Жыл бұрын

Paul has best in class funds on his website recommends Avantis AVUV

@muffemod

Жыл бұрын

With an ETF it doesn't matter which brokerage you're using.

Would $IWM be a good ETF choice?

where was this talk givin

What do you think of international small cap value? Would you recommend a tilt to that in a portfolio or just stick to the domestic small cap.

@misterr2359

2 жыл бұрын

Gotta have it.

@wanderingdoc5075

2 жыл бұрын

@@misterr2359 I'm a real estate guy, as more than 90% of my portfolio is cash flowing commercial real estate. I am financially free in my 30s so for fun I am investing in paper securities now. I started an M1 finance portfolio of a gold fund, commodities, and a small weighting to international small cap value which has been hammered the last couple of years. I'm putting about $2K a month into this portfolio but do you think I should stick to more basic total market funds?

@misterr2359

2 жыл бұрын

@@wanderingdoc5075 I’m not a financial advisor but I personally don’t invest in gold nor commodities and I don’t think it’s a good choice for the long run. Watch some videos of Ben Felix and other good channels such as this one and come up with a good portfolio that will probably have a general market fund and factor investing as well. Cheers!

@ajrobbins368

2 жыл бұрын

@@wanderingdoc5075 As you know, gold and commodities are resources, not value-producing assets. At best, long-term expected returns will match inflation. They do tend to be less correlated with the equity market, but their prices are also more volatile. There may be a tiny diversification benefit, but that's all unless you are a speculator.

@ajrobbins368

2 жыл бұрын

@@wanderingdoc5075 At least real estate is a necessary ingredient for value creation. Farms, mines, factories, powerplants, offices, databases, ports, and storefronts all require space to operate. Businesses (equity/stocks) create value by producing goods and services efficiently. Loans (debt/bonds) accelerate value creation by encouraging business growth. The interest or "yield" on loans return a portion of the value created by borrowers to lenders.

Speculating on factors is akin to speculating on individual stocks. Who knows if it will outperform at the right time as you withdraw for retirement? All you can do is cross your fingers and hope your retirement doesnt fall into one of the DECADES where SCV performs badly.

@misterr2359

2 жыл бұрын

Who knows if the market will be down -50% at the right time as you withdraw for retirement? That's why you gotta have fixed income close to retirement. You won't have ONLY small cap value.

@davec3974

2 жыл бұрын

@@misterr2359 also worth noting that 'value' has often outperformed the market when the market has underperformed treasuries. So not only do V and SCV increase expected returns over the long term, they also provide diversification.

@ajrobbins368

2 жыл бұрын

False equivalency. Factor investing is guided by decades of academic research. The same body of research shows that most active fund managers underperform the market. These methodologies are clearly not "akin" as you claim.

@batardglouton5455

Жыл бұрын

You're confusing capturing the premium vs negative/flat returns attributed solely to scv, besides, mcw has underperformed for long periods of time as well.

@muffemod

Жыл бұрын

Speculating would be putting it all in SCV. Multi-asset class approach is what we're talking about here. If you just hold the market you are speculating on just one of the many factors.

Imagine if John the Baptist was telling everyone - “cmon down and get baptized, you could go to heaven. We don’t know for sure, but its possible, i’m saying its possible folks”