I post videos on investing, financial decision-making, and living a good life.
My name is Ben Felix. I am a Portfolio Manager and the Head of Research at PWL Capital. I am a CFA charterholder and CFP professional. I am securities licensed in Canada by CIRO.
All channel content is produced and owned by PWL Capital Inc.
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@Ben Felix: I agree with everything you've said in the video. Matematicaly you are correct. Rationaly you are corect. But the markets are not rational (on the short term at the very least). That how bubbles are created. IF markets were reasonable and rational no bubbles will ever exist. And there is one more thing that you haven't considered. In a normal market environment you are 100% corect BUT in an irational market environment, when everybody is panicking and markets fall as a rock, any investor is dependant on other investors to buy his stocks if he needed to sell to cover expenses. If nobody is willing to buy at a decent price you are being forced to sell at a discount (large or small) your stocks to get the money that you need. The diference is that the dividend investor doesn't care about market irationality because he is being paid directly by the companies that he has invested his money through dividends. So this is the main reason I see for dividend investing. Stable income no matter what markets are doing. Yes, dividends can fluctuate also but way more less then stock prices. Do you agree? Thanks.
Only 10% of people actually retire with a fund of $1M. Why aren't there much higher rates of failure of portfolios based in your observations?
So, if I use my margin in etrade, how do they get my money for payments on the margin? through my cash in the portfolio I presume. So should I always have some cash to pay the margin payments?
I’m not even gonna watch this. Unless you’re retiring at 40 (and need to account for 45-50 years of inflation) -or you’re the worst investor (with respect to returns), then this is complete fallacy. Don’t hire this guy.
2.7% will require millions saved up in order to achieve an acceptable standard of living. This isn't feasible for the vast majority of people. As for the US stock market, if it collapses, so does the whole world, so it will never collapse barring a nuclear war, and if there is a nuclear war your pension will be the last thing you'll be worrying about.
Great job
At 2:33, I don't see how this explanation explains anything. The World Wars and Cuban missile crisis happened a long time ago now, and investors are (I hope) fully aware that these things happened. Shouldn't this just be priced into US stocks? Maybe in like the 50's and 60's there would be new information about the effects of these events entering the market, but still now? Not to mention that e.g. India and Pakistan have also thus far avoided nuclear war with each other despite border disputes/skirmishes. Why don't their stock markets overperform in recognition of that? Is there any analysis actually comparing stock market performance with countries' experiences with WW2?
There are equal number of reasons why you need to do day trading. Problem is greed of traders. Set some 24 filters and do the trading. No point in trading every day also. But who listen?
It is commendable to witness the Conservatives expressing their opposition to the increase in the capital gains tax. Canadians are increasingly frustrated with the federal government's practice of raising taxes and squandering funds.
So playing the lottery can be part of a diversified investment strategy, right?
Renting doesn't give security or flexibility to rent it out. Also the rent can get higher without any of your control. Home is not a material possession, its a human right to have a safe place to stay.
Renting out your home can be more stress than it's worth. Rental laws are mostly local so depending where you live there can be limits on rent increases. While I agree having a place to live is a human right, homeownership isn't.
how will we consider rent increase over time?
It might be worth revisiting this now that interest rates are higher to see if the math still checks out.
Where to get access to this stock data to conduct independent research on the trends?
The most important lesson? Don't trust some slick salesman on KZread who uses "research" to peddle his wares in the same way that an actor in a lab coat sells toothpaste.
This is so brilliantly explained. Thanks Ben.
Could you make a video with the same thought process for choosing a wife? What risk and reward factors would be most relevant? What would be a suitable time horizon to evaluate the decision over? And is it true that the quality of my decision shouldn’t be based on the quality of outcome?
Not true because your short fixed income position will have a fixed rate and your long fixed income position won't
in emerging markets, probably due to the market not being as efficient, the result would be the same, but a balance in bounds and other fixed-income options would make a difference. And of course, home county bias means the investor knows (or should know) those products. In Brazil, for example, treasuries and Bonds have a very different dynamic than those in the US. You have access to treasures and bonds that are inflation (CPI) + Bonus, Personal consumption expenditures (PCE) + bonus, or Fix-income considering 10,20,30,40 and 50 years.
Great work
Demogtmraphics will control this. Due to the boomers we have had more buyers than sellers of assets over the decades. Prices went up. As the boomers retire and sell their assets to fund their retirement, we will have much fewer buyers and more sellers. In that circumstance, either prices?
This is so quaint knowing his 2019 self had no idea what was about to happen
Gold makes sense for investors in countries like India with weaker currency. No matter where you invest on debt side in India currently, minus taxes and currency devaluation, the investments loose value over long term. Hence the gold.
Great channel
Great job
I would argue that property taxes have a residual value since they fund many services in your community. However, iterest paid on your mortgage does not have residual vale.
Thanks for doing these, extremely helpful 👍
are you human or AI generated
How good is CPP compared to other counties pension plans ? Is it as good as European ones
I don't care about grow, I want my monthly dividend to buy other ETFS, sorry, but I don't see any sense in this video.
Thanks, Ben! very informative as always. What say you about tools such as SVOL? it's not exactly covered calls (though using options against the VIX to yield around 16%), and it's total return is also great. SVOL also seem to be a kind of a different asset class, cause it targets the fear index and not stocks themselves.
I love these videos. Thanks for sharing the analysis in such a simple way
Thank you 🙏
Hang on. I was just made to watch a 2 minute ad to get to this. How long have these long non skippable ads bee going on. I'm shocked.
Yikes that’s terrible. I’ll look into it.
Of course this guy, a professional money manage who makes money by advising clients to buy and sell, hates dividends. He can make zero money off a dividend investor.
It’s a fair point. People with low financial literacy are less likely to seek and benefit from professional financial advice.
If you can buy “luxury” without putting a financial burden on. Then yes! Buy luxury.
Currency exchange cost is silent but deadly
Don't be greedy, you'll be fine in the long run.
2.7% withdrawal + 1.1% AUM averted (advisor's charge on your portfolio)
Maintenance can be postponed if you are ill or dying - that’s flexibility for you in harder life circumstances. Mortgage payments will end as soon as you pay it off. So the cost of living in a house you own can be lowered over time. You can rent out some part of your house to live off this rent, you can rent out the whole house and to have a happy life in a shed at the sea side, paying for it from this rent. You can sell your house to pay your debt or to invest the money for stable income. You are gradually gaining ownership over something that will appreciate over time - have you seen the prices? And regarding work in the house - people choose to do it themselves because of finances, or maybe they like it. But they always have a choice of hiring someone to maintain a house for them.
Not all maintenance can be postponed. If the roof develops leaks or if the AC breaks down these will need to be repaired sooner rather than later. Most people don't ever pay off a 30-yr mortgage. While a home is likely to eventually appreciate (the land is what actually appreciates not the house itself) historically the global stock market has higher and more consistent returns.
Maintenance can be postponed if you are ill or dying - that’s flexibility for you in harder life circumstances. Mortgage payments will end as soon as you pay it off. So the cost of living in a house you own can be lowered over time. You can rent out some part of your house to live off this rent, you can rent out the whole house and to have a happy life in a shed at the sea side, paying for it from this rent. You can sell your house to pay your debt or to invest the money for stable income. You are gradually gaining ownership over something that will appreciate over time - have you seen the prices? And regarding work in the house - people choose to do it themselves because of finances, or maybe they like it. But they always have a choice of hiring someone to maintain a house for them.
Not all maintenance can be postponed. If the roof develops leaks or if the AC breaks down these will need to be repaired sooner rather than later. Most people don't ever pay off a 30-yr mortgage. While a home is likely to eventually appreciate (the land is what actually appreciates not the house itself) historically the global stock market has higher and more consistent returns.
Recently, I've been pondering retirement. I've also want to put $800K into the stock market but i need an approach that will align with my risk tolerance and financial goals to secure our future
While the stock market is promising, expert guidance is essential for effective portfolio management
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2022
Mind if I ask you to recommend this particular coach you using their service?
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
2:02
Thr distribution of outcomes only exists in your mind, there is only uncertainty. You want so desperately to think in terms of randomness, but there is no such thing as randomness
Risk just means uncertainty, there is no distribution of outcomes
If the yield curve is flat, why would holding a short duration bond reduce your expected return?
This is bad advice, holding a bond with a low yield is stupid
The concept of expected returns is basically nonsense. Which probability measure are you using to calculate this expectation?
I'd rather base my withdrawal rate on an average expectation and adjust down if things go bad. No need to assume the worst and suffer from the get go.
Hi Ben Thank you for the excellent video and comprehensive analysis! I was particularly interested in the section where you discuss the returns of US stocks between 1950-2023 and 1970-1985. Unfortunately, I couldn't find the return figures you mentioned in the sources I checked. Could you kindly share the source from which you obtained this information? I would greatly appreciate a more detailed reference or source material to review it further. Thank you in advance for your assistance, and keep up the great work! And greetings from an active follower of yours from Finland.