Chris Brycki

When you invest in a thematic ETF or fund, you’re not just choosing what to own… you’re choosing what to leave out. Back one sector and you underweight the rest… often the areas quietly driving returns when leadership rotates, like we’re seeing right now. This piece for @LivewireMarkets explains why concentrating on one theme can mean missing the parts of the market that end up doing the heavy lifting. livewiremarkets.com/wires/the-hidd…

This from @RealJimChanos caught my eye recently. He shared data on the trading performance of Robinhood users since the meme stock boom ended in mid 2021 and found that the total profits from Robinhood traders over that period net out at roughly zero. I think that's remarkable when you consider the backdrop. As he points out, global share markets have risen strongly since mid 2021 and the S&P 500 Total Return is up over 70%. In other words, during a rising market the average trader still didn’t make money! It highlights something I’ve written about before. For many people, stock trading ends up looking more like a casino than investing. The evidence is pretty clear. Studies across the US, Taiwan and Brazil consistently find that between 80% and 97% of day traders lose money. There are a few reasons why. First, behavioural biases. Early wins are often mistaken for skill rather than luck. That leads to overconfidence, larger bets and sometimes leverage. Second, the structure of trading itself. Every trade has a buyer and a seller. Once you add costs, spreads and timing errors the odds tilt even further against the average retail trader. And finally, competition. When you trade an individual share you’re often trading against professional investors with better information, better technology and teams of analysts. In some markets your orders are even sold to high frequency trading companies through payment for order flow... allowing sophisticated traders to effectively trade against you. ETF investing flips the whole equation. Instead of trying to outsmart the market, you simply own it. In casino terms, retail stock traders are the gamblers at the table. Indexed ETF investors are the house. If regulators really want to improve outcomes for retail investors, they should ask every trading platform a simple question and require the answer to be displayed clearly on their website. What percentage of your clients are actually profitable? We ran the numbers for Stockspot. Among the roughly 15,000 clients who’ve invested with us for at least a year, 99.6% are ahead. My guess is the answer from most trading platforms would look very different. And it might surprise a lot of people!

In 2021, backing Amazon felt obvious. Lockdowns. E commerce booming. Cloud exploding. Yet over the next 5 years it lagged retailers like Walmart, Costco and even Harvey Norman. Investing isn’t about spotting trends. It’s about what’s already priced in. That’s why beating the market is so hard. For most investors, a low cost indexed ETF makes more sense. Own the whole market. Stay invested. Let compounding do the work. smh.com.au/money/investin…

Gold as the New Currency An interesting article on the Fiat Debasement Trade (FDT) today by Chris Brycki @chrisbrycki. afr.com//wealth/person…

The cost of six years at a private school could fund a deposit on a $2m house, leaving some parents wondering if investing for their kids is the smarter choice. More at: bit.ly/3NFvrBr

What do the highest-earning investors have in common? A bold appetite for risk and a smart approach to managing it. ebx.sh/3PaQcI

SMSFs are outperforming traditional super funds by investing in cheap, simple ETFs and avoiding endless trading and layers of management fees. afr.com/wealth/persona…

I spoke with @peterstefanovic today about the Fed's overnight decision, the economic outlook, and the possible impact of tariffs on Australian pharmaceuticals. skynews.com.au/world-news/uni…

The price of gold has gone from strength to strength in recent years, but can it continue on its upward trajectory? Stockspot founder Chris Brycki joins Tom Watson on the latest episode of the Friends With Money podcast, out now. Listen and subscribe: bit.ly/3WDtFmA.

2024 was the 14th consecutive year in which the majority of fund managers underperformed the index. Over a 3-year period, 85% underperformed the S&P 500. Over a 15-year period, 90% underperformed. And over a 20-year period, 92% underperformed. via @SamRo

Tying to boost your super? How about an ETF... Chris Brycki from Stockspot highlights that Aussies are increasingly using #ETFs to bridge the retirement savings gap... Watch here for more: ausbiz.co/4hoJG87 #ausbiz #asx200 #RetirementGap #Superannuation

@dollarsanddata Res tantum valet quantum vendi potest.

A friendly reminder that the price of an asset is determined by what someone else is willing to pay for it.

Exactly @dollarsanddata. blog.stockspot.com.au/defensive-asse…

The S&P research aligns with our own recent analysis, which revealed that less than 10% of active funds accessible to Australian investors were able to outperform a basic index ETF over a five-year period. blog.stockspot.com.au/best-managed-f…

We regularly provide clients with updates on the SPIVA Scorecard - research published by S&P Global that aims to evaluate whether active fund managers can outperform their respective benchmarks over various time periods. This month, S&P Global released an after-tax edition of their U.S. research, revealing even more alarming statistics due to the substantial portfolio turnover associated with active funds. Shockingly, fewer than 10% of active funds in each category managed to outperform the index over 10, 15, and 20-year periods. For anyone who owns active funds in their portfolio it's a compelling read worth your attention! spglobal.com/spdji/en/docum…

🎉 We are excited to announce that Stockspot has received a $28 million investment from Mirae Asset Global Investment @miraeasset. This funding will allow Stockspot to further enhance our technology and continue developing innovative products and services for our clients. Learn more about this exciting news here: blog.stockspot.com.au/stockspot-mira…

Not a surprising development, this was my take on their reported results last year blog.stockspot.com.au/super-funds-sh… @cjoye @hannahkwootton

@NickJNicolaides @galumay @claudedwalker @pearlerHQ Thanks for the mention @NickJNicolaides. @galumay you can find out more about the Stockspot kids option here: stockspot.com.au/investingforki… the investments are held on your own individual HIN and we don’t charge fees on kids accounts until the balance reaches $10,000 or child turns 18.

@galumay @claudedwalker @pearlerHQ Hey @galumay well done on bringing your nephew into the world of investing! There are plenty of options. In addition to fees, I’d consider minimums, mobility and how user experience may impact your nephew’s learning. Try Stockspot, Vanguard, both great non-own HIN options.

Hey @claudedwalker I am about to help my nephew sign up for @pearlerHQ but they now charge a monthly fee of $2.30 for the Micro plan, makes it very high fees for a young investor contributing regular small amounts. Are there better options you know of?

@danziffer We've been following this issue since 2018 Dan: facebook.com/watch/?v=55810…

AMP charged customers that IT KNEW WERE DEAD for financial 'advice' and - I'm not making this up - life insurance premiums. Today it got 24 million reasons to not do that again. abc.net.au/news/2023-05-1…