9/15

Together With

More fiction has been written in Excel than in Word.”

— Morgan Housel

Research

Cliff Asness believes the stock market has become less efficient during the past 34 years. He shares three hypotheses (below) and explains why that means disciplined, value-based stock picking is both riskier and more rewarding long term.

  1. Indexing Has Ruined the Market

  2. Very Low Interest Rates for a Very Long Period

  3. We Have the Effect of Technology Backwards

As of August 30, 2024

UBS’ annual report highlights key themes related to global wealth, including:

  • The world has been getting progressively richer across all wealth segments - The proportion of people in the world in the lowest wealth bracket has shrunk since 2008, while the proportion of people in every other wealth bracket has grown.

  • Wealth mobility has been more likely to be upward than downward - Roughly one in three individuals moves into a higher wealth band within a decade.

  • A great horizontal wealth transfer is under way - USD 83.5 trillion of wealth will be transferred within the next 20–25 years.

  • The number of millionaires is on track to keep growing - In 2023, millionaires accounted for 1.5% of the adult population analyzed, and the U.S. had 38% of all millionaires.

As of December 31, 2023

Vanguard analyzes allocators risk appetite and what they’re buying and selling across more than 100 sub-asset classes, durations, styles, sectors, and thematic investment categories.

As of June 30, 2024

Bonus Content

Liz Ann Sonders shares lessons learned from some all-time investment greats during her 38 year career. Link

Schroders’ Duncan Lamont explains why investors should be cautious about chasing performance. Link

A 30 year-old from Queens hacked the U.K. game shows and turned quizzing into a full-time profession. Link

A little-known provision in US law permits anyone to blow the whistle on financial fraud, and potentially take home a percentage of the funds collected. One undercover sleuth has made a wild career out of it. Link

Where Sophisticated Investors Access Private Markets

For individual investors, sourcing and vetting high-quality, sub-scale private market opportunities poses challenges – information asymmetry, adverse selection, insufficient resources, etc.

Enter 10 East.

10 East, led by Michael Leffell, is a platform where qualified investors can invest in vetted private credit, real estate, niche venture/private equity, and other one-off investments that aren’t typically available through traditional channels.

10 East principals have a 12+ year track record of strong performance across 355+ transactions.

And the best part? 10 East offers the flexibility to invest on a deal-by-deal basis, while co-investing alongside industry veterans who have skin-in-the-game.

10 East is where founders, executives, and portfolio managers from leading firms are diversifying their personal wealth.

Podcasts

8/27/24 - 91 minutes

Baker covers the competition among the Magnificent Seven, what he's learned from Nvidia, and how investors should approach the current AI paradigm.

8/3/24 - 122 minutes

Porter Stansberry’s new podcast will dive into the operations, finances, customers, and strategies that make each company a world-class investment. First up: McDonald’s.

What Else Is Happening

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