How to Invest in an Overpriced World

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jhogue
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How to Invest in an Overpriced World

Post by jhogue » Wed Jan 24, 2018 8:18 am

Investors in the PP will want to read Burton Malkiel's editorial in today's Wall Street Journal, "How to Invest in an Overpriced World."

Malkiel, a Princeton economics professor whose book "A Random Walk Down Wall Street," has become an investment classic that foresaw and supported the rise of passive investment strategies, endorses three strategies in his op-ed:

1. Broad diversification of asset classes.

2. Periodic rebalancing.

3. Paying attention to cost.

If you have invested in the PP, you have/are doing all three.

To be sure, Malkiel endorses some assets Harry Browne taught us to shun-- including REITs, emerging markets, and preferred shares. Nonetheless, there is plenty here to argue about as we face a new year in which all assets seem richly valued and, as Grandpa used to say, "Thur ain't nuthin' cheap out thur!"
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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Re: How to Invest in an Overpriced World

Post by dualstow » Wed Jan 24, 2018 4:10 pm

Found it, thanks!

Btw, when I searched it popped up along with the line:
Appeared in the 1月 23, 2018, print edition.
月 is the Chinese (and Japanese) character for month, so 1月 is January. Not sure why it's on my screen, though.
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Re: How to Invest in an Overpriced World

Post by buddtholomew » Wed Jan 24, 2018 4:18 pm

The article pays homage to Bogle and the recommendations are aligned with the Boglehead philosophy.
The PP is referenced in the BH wiki as a passive portfolio which fits Malkiel's perspective rather well.
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Re: How to Invest in an Overpriced World

Post by Kriegsspiel » Wed Jan 24, 2018 5:30 pm

dualstow wrote:Found it, thanks!

Btw, when I searched it popped up along with the line:
Appeared in the 1月 23, 2018, print edition.
月 is the Chinese (and Japanese) character for month, so 1月 is January. Not sure why it's on my screen, though.
Every once in a while I see Chinese characters on these phpBB forums, Google news, and a few other places. I think I posted a screenshot here before. I simply assume Unit 63198 is targeting me and move on with my life.
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Re: How to Invest in an Overpriced World

Post by dualstow » Wed Jan 24, 2018 6:34 pm

O0
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Re: How to Invest in an Overpriced World

Post by Libertarian666 » Thu Jan 25, 2018 4:34 pm

jhogue wrote:Investors in the PP will want to read Burton Malkiel's editorial in today's Wall Street Journal, "How to Invest in an Overpriced World."

Malkiel, a Princeton economics professor whose book "A Random Walk Down Wall Street," has become an investment classic that foresaw and supported the rise of passive investment strategies, endorses three strategies in his op-ed:

1. Broad diversification of asset classes.

2. Periodic rebalancing.

3. Paying attention to cost.

If you have invested in the PP, you have/are doing all three.

To be sure, Malkiel endorses some assets Harry Browne taught us to shun-- including REITs, emerging markets, and preferred shares. Nonetheless, there is plenty here to argue about as we face a new year in which all assets seem richly valued and, as Grandpa used to say, "Thur ain't nuthin' cheap out thur!"
I think gold is pretty cheap.

That's about it.
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Re: How to Invest in an Overpriced World

Post by Kriegsspiel » Thu Jan 25, 2018 9:01 pm

Agreed.
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Re: How to Invest in an Overpriced World

Post by dualstow » Fri Jan 26, 2018 12:05 pm

I don't know whether or not it'll help gold, but the Doomsday Clock is now 2 minutes to midnight:

http://www.kurzweilai.net/the-doomsday- ... e-midnight
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Re: How to Invest in an Overpriced World

Post by Don » Mon Jan 29, 2018 9:16 am

dualstow wrote:I don't know whether or not it'll help gold, but the Doomsday Clock is now 2 minutes to midnight:

http://www.kurzweilai.net/the-doomsday- ... e-midnight
Don't worry. As soon as the next Democrat takes office they'll turn back the hands of time.
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Re: How to Invest in an Overpriced World

Post by jhogue » Mon Jan 29, 2018 9:36 am

Libertarian666 wrote:
jhogue wrote:Investors in the PP will want to read Burton Malkiel's editorial in today's Wall Street Journal, "How to Invest in an Overpriced World."

Malkiel, a Princeton economics professor whose book "A Random Walk Down Wall Street," has become an investment classic that foresaw and supported the rise of passive investment strategies, endorses three strategies in his op-ed:

1. Broad diversification of asset classes.

2. Periodic rebalancing.

3. Paying attention to cost.

If you have invested in the PP, you have/are doing all three.

To be sure, Malkiel endorses some assets Harry Browne taught us to shun-- including REITs, emerging markets, and preferred shares. Nonetheless, there is plenty here to argue about as we face a new year in which all assets seem richly valued and, as Grandpa used to say, "Thur ain't nuthin' cheap out thur!"
I think gold is pretty cheap.

That's about it.
I thought of expressing some skepticism of Libertarian666's all-weather enthusiasm for gold until I saw the following headline in today's Wall Street Journal:

"Gold Surge Accelerates as Dollar Falls:
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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Re: How to Invest in an Overpriced World

Post by Libertarian666 » Mon Jan 29, 2018 10:15 am

jhogue wrote:
Libertarian666 wrote:
jhogue wrote:Investors in the PP will want to read Burton Malkiel's editorial in today's Wall Street Journal, "How to Invest in an Overpriced World."

Malkiel, a Princeton economics professor whose book "A Random Walk Down Wall Street," has become an investment classic that foresaw and supported the rise of passive investment strategies, endorses three strategies in his op-ed:

1. Broad diversification of asset classes.

2. Periodic rebalancing.

3. Paying attention to cost.

If you have invested in the PP, you have/are doing all three.

To be sure, Malkiel endorses some assets Harry Browne taught us to shun-- including REITs, emerging markets, and preferred shares. Nonetheless, there is plenty here to argue about as we face a new year in which all assets seem richly valued and, as Grandpa used to say, "Thur ain't nuthin' cheap out thur!"
I think gold is pretty cheap.

That's about it.
I thought of expressing some skepticism of Libertarian666's all-weather enthusiasm for gold until I saw the following headline in today's Wall Street Journal:

"Gold Surge Accelerates as Dollar Falls:
I do like gold a lot, but that doesn't mean I always think it is cheap.
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Re: How to Invest in an Overpriced World

Post by jhogue » Mon Jan 29, 2018 11:20 am

Thanks for correcting my mis-perception of your views on gold.

You may be correct that gold is under-valued at the moment, but how can you tell?
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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Re: How to Invest in an Overpriced World

Post by dualstow » Mon Jan 29, 2018 1:26 pm

jhogue wrote:I thought of expressing some skepticism of Libertarian666's all-weather enthusiasm for gold until I saw the following headline in today's Wall Street Journal:

"Gold Surge Accelerates as Dollar Falls:
It's mid-afternoon now, and all I see is 'Gold Falls as Dollar Rebounds, Treasury Yields Rise' in the same paper.
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Re: How to Invest in an Overpriced World

Post by dualstow » Mon Jan 29, 2018 1:31 pm

P.S. also -
'The Highest-Yielding Treasury Bond Isn’t Declining Like Its Peers'
The yield on the 30-year bond has been relatively stable, weighed down by doubts about a long-term pickup in inflation
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Re: How to Invest in an Overpriced World

Post by buddtholomew » Mon Jan 29, 2018 5:08 pm

Red across the landscape today.
Doing nothing.
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Re: How to Invest in an Overpriced World

Post by ochotona » Mon Jan 29, 2018 7:04 pm

buddtholomew wrote:Red across the landscape today.
Doing nothing.
No fun. I keep listening to podcasts where the speakers talk about a world where bonds and stocks aren't anti-correlated... where they go down together. These thoughts don't make me happy. The more I think about it, the more I think about gold and cash.
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Re: How to Invest in an Overpriced World

Post by eufo » Mon Jan 29, 2018 8:45 pm

Cash is going up! It never feels good, though.
Don't agree with me too strongly or I'm going to change my mind
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Re: How to Invest in an Overpriced World

Post by Libertarian666 » Wed Mar 07, 2018 6:54 am

jhogue wrote:Thanks for correcting my mis-perception of your views on gold.

You may be correct that gold is under-valued at the moment, but how can you tell?
It is a couple of years off a major bottom and has been rising slowly and erratically for those years. There is no enthusiasm for it in the financial media.

Also, buddtholomew hates it.

But that last one may be permanent and thus would not have any predictive value. :D
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Re: How to Invest in an Overpriced World

Post by jhogue » Fri Mar 09, 2018 3:21 pm

Do you think that bitcoin is affecting the gold market? If so, how??
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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Re: How to Invest in an Overpriced World

Post by Libertarian666 » Fri Mar 09, 2018 8:11 pm

jhogue wrote:Do you think that bitcoin is affecting the gold market? If so, how??
Who knows? But I doubt it has any significant influence. The markets for the two assets are too different, in my opinion anyway.
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Re: How to Invest in an Overpriced World

Post by dualstow » Tue Mar 13, 2018 8:52 am

jhogue wrote:Do you think that bitcoin is affecting the gold market? If so, how??
viewtopic.php?f=5&t=9238&hilit=gold+losing+bitcoin
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