Quant Cliff Asness talks about how you can set up your portfolio

Its always nice to hear someone who have done the statistical research on what works over a period of time. Cliff Asness discuss many interesting topics especially for those who are very value tilt, or very momentum based. They don’t usually see eye to eye.

Particular interesting is his take on bonds and having a global diversified portfolio (Vanguard Total World Stock ETF maybe?)

2:46: Why stocks are expensive and will not provide the 8% most investors wants
3:23: CAPE is 23 times above the average 13-17 times
5:10: The critical nature of returns
6:20: How to adjust portfolio away from over reliance on stocks
8:00: Buying Benjamin Graham stocks quantitatively
10:00: 6-12 months momentum strategies
11:20: Defensive stocks that protects you tend to outperform. Low beta, low volatility stock
12:40: He talks up an industry that is defensive which is the utilities
14:00: What are the assessable diversifiers for the average people
15:11: Their 3 dirty words in finance – Leverage, Derivatives and Shorting
18:00: REITs, Cash, Puts, Gold
19:20: Greatest Risk in market right now
19:40: One investment to own – Bonds (listen to his argument of a diversified portfolio vs a pure equity one in 1970s)
21:40: Aside from Equity, Bonds and Gold, some essential diversifiers are Inflation protected bonds, Global tilt (What if your country ends up becoming a Japan)

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Kyith

Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.

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