James Sweeney
985 posts
James Sweeney
@jamessweeney50
I'm changing the paradigm of financial advice from sales to profession by offering comprehensive planning and investment management for a transparent flat fee.
Katılım Eylül 2015
31 Takip Edilen105 Takipçiler
@jamessweeney50 😞I was once hired to create model ETF portfolios for an adviser. They held between 4 and 6 ETFs. The adviser came back and asked me to double the number of holdings in each model to make them appear more complicated.
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When I write on X a single world equity index fund (VT) or ~65% total US stocks (VTI) and ~35% total international stocks (VXUS) is all the equity most people need to achieve their objectives, the pushback I get isn’t from individuals, it’s from advisers who charge high AUM fees.
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@MebFaber I get why retail investors like it, but advisors recommend it for clients? That is wild
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I'm not going to go as far as saying it's a fiduciary violation but if I see QQQ in your portfolio I'm definitely judging you ...
May as well pick only the stocks A-M, top 100 market cap same outcome.
Or my favorite idea....the dart contest!
Meb Faber@MebFaber
Investing in the QQQs is one of the most nonsensical investments to make. Many mistakenly assume the QQQs are a tech fund (owns WMT, COST, etc) Pick 100 stocks *but only from one exchange* and market cap weight them. Why would you voluntarily choose to remove half of all stocks? ¯\_(ツ)_/¯
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@126613LBSUB @Rick_Ferri Small benefit but reasonable reason to split it. Do you also subscribe to the idea of preferring intl in taxable and us in deferred accounts to further maximize the foreign tax credit? Already starting to get a bit complicated…
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@jamessweeney50 @Rick_Ferri I believe you lose the foreign tax credit by owing VT
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When an adviser buys a growth stock index fund, a value index fund, the S&P 500, a small-midcap index fund, a developed markets fund, and an emerging markets fund, that's called "slice'n dice". It's done to create complexity for job security, because TWO FUNDS would have sufficed: VTI and VXUS.
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@sammyzitek @T_Gatzemeier Do you have GIPS compliant performance data to back up your claim that your clients “make a ton of money”. I assume by that you mean they outperform common indexes where they would have also made a lot of money. I’d love to see the evidence
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Honest question that I cannot wrap my head around…
Why are there still financial advisors putting their clients into mutual funds with an expense ratio of 1% or more?
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@AdviserCounsel Because not all CFP professionals are registered investment advisors. Some work for BDs or hybrid. Some sell insurance. But all get to say they are fiduciaries. And don’t worry because the CFP board monitors and enforces that standard very closely.
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Just saw the new CFP commercial on ESPN.
The whole pitch is that CFPs have to act in your best interest, but that is basically the same standard for any registered investment adviser.
So why does it “gotta be a CFP?”
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@AdviserCounsel Maybe I wasn’t clear. I like it not because I agree but because he’s being explicit. If you’re supporting these politicians you can’t pretend to “love your neighbors” when your leaders blatantly discriminate based on race, religion, etc.
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@jamessweeney50 Replace “Muslim” with any other religion.
I have neighbors in my community that are Muslim and celebrate Ramadan. In fact, a family right across the street. They are great neighbors and people.
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Imagine being a sitting US Congressperson and testing out this xenophobic line.
Rep. Andy Ogles@RepOgles
Muslims don't belong in American society. Pluralism is a lie.
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@MebFaber Doesn’t VT have about 10%? What benchmark do you use that has a higher allocation?
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Similar to older polls, about 70% of investors are underweight vs. the benchmark.
Meb Faber@MebFaber
How much of your stock portfolio is in emerging market stocks?
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@scooperhoops Aren’t suns better with him off the court than on this year? Maybe him missing a few games is okay…
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Will be interesting to see if Dillon's rate of techs actually slows from now on, it's an interesting challenge for Ott as a rookie coach. You want him to be an enforcer but not to the point where it's detrimental to the team.
Duane Rankin@DuaneRankin
Suns injury report vs. Spurs in Austin: OUT: Dillon Brooks (one-game suspension), Cole Anthony (not with team). Jalen Green (hamstring/hip), Devin Booker (ankle), Grayson Allen (knee) and Isaiah Livers (shoulder) aren't on the injury report. #Suns
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The BTC "closed-end fund" that owns ~3.5% of all Bitcoin is on a full tilt buying spree, BTC ETFs received ~$22B in flows last year and the price keeps going down
Jake@EconomPic
$MSTR this past summer (July 31st) introduced a rule where they could only issue equity when their market value was 2.5x or higher than the BTC it held. This rule was removed 18 days later. This week he diluted shareholders (no premium) to empire build with a $2B+ purchase.
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@MebFaber @AdamMGrant The sad thing is it often happens without a conscious choice. People don’t choose to surrender their independent thought. They think the people they listen to just happen to agree with them. They don’t recognize the influence their media choices are having on them
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The single worst trade I can think of:
Sacrificing your mental independence and emotional health to align with a political party.
Zero upside and massive downside.
Try subbing out "ideas" for "party" in my favorite @AdamMGrant quote
x.com/AdamMGrant/sta…
Adam Grant@AdamMGrant
The hallmark of an open mind is not letting your ideas become your identity. If you define yourself by your opinions, questioning them is a threat to your integrity. If you see yourself as a curious person or a lifelong learner, changing your mind is a moment of growth.
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@edgeprobability @MebFaber @CalPERS New definition of evidence based investing apparently = performance chasing
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@jamessweeney50 @MebFaber @CalPERS Clearly you’re a crypto bear, but yes. I wouldn’t say “large” allocation if you’re in a time-based strategy, but you’d be a buffoon to not have it in a diversified portfolio.
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Most financial advisors and institutions claim to be "evidence based".
What happens when the evidence shifts?
If gold continues to outperform, how will they fit this into their world view?
Lots of awkward conversations coming to a board room near you....
Cc @CalPERS
Meb Faber@MebFaber
Here's a crazy stat that no one will believe. The universal investment benchmark is the 60/40 portfolio of stocks and bonds. What if you replaced the bonds entirely with gold....crazy right? Turns out it makes no real difference.
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@EconomPic I was just giving a for-instance. What do you make of the tiny spread?
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@jamessweeney50 tech is 9% of the $7T outstanding corporate debt... the index is also MBS which has other forms of risk that has very little to any spread
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@honest_math I think one’s allocation within stocks is actually really important - US vs Intl, large vs small, value vs growth. Of course not as important as whether you own stocks at all. But actually in the long run hugely important, not trivial.
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*Factor Tilts*
It's fun to dive into the weeds on the latest research, and you might improve your portfolio by modifying your exposure a bit.
But there's no need to be a zealot about it. As long as your asset class allocation is appropriate, you're in good shape.
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@jamessweeney50 @honest_math Time value of money would benefit the renter vs the homeowner, since the renter has less money tied up at day 1.
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We've updated our Homeownership Model to reflect median home prices and current 30-year mortgage rates in the U.S.
As always, our math and assumptions are transparent, and we encourage feedback and thoughtful criticism on our methodology and presentation.
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@PolliardZ @honest_math It’s not that simple due to time value of money. I can do the math. I just don’t have the following that @honest_math has and I’m suggesting what I think would be even more helpful for consumers
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@jamessweeney50 @honest_math Brother, he gave you all the math for it.
Net cash flow after 10 years is $(288k).
$288k ÷ 120 months = $2.4k
$2.4k avg rent is your break even in this example.
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