David Powell

Comments:

• I do not favor a 20% international allocation target, but that's just what works for how I invest. A 20% target may work wonderfully for lots of people. Among the best advice I've ever read was this, from Morgan Housel: "...few things matter more with money than understanding your own time horizon and not being persuaded by the actions and behaviors of people playing different games than you are."

  Post: Underwater Overseas

  Link to comment from October 6, 2024

• The original Dimson, Marsh, Staunton dataset, from Triumph of the Optimists, has real and nominal stock return and risk premium data for the 23 largest global markets starting from 1900. It's a small slice of the global community by country but accounts for most world stock market capitalization. DMS's newer dataset, which supports their excellent annual Global Investment Yearbook, has added data for another 67 countries, though over shorter time periods. You can read the free summary edition of their current Yearbook here. Correlation rates vary over time, of course, but DMS wrote back in 2000 they found portfolio volatility shrank, for a dollar-based investor, for each additional country's cap-weighted stock index added to a portfolio. After including indexes for 16 countries, further volatility reductions were small. The US stock market's share of total world stock market cap is ~60% today but has averaged ~50% since 1970; it started at ~15% in 1900.

  Post: Underwater Overseas

  Link to comment from October 6, 2024

• What great memories, and unforgettable experiences. Well done, Sanjib.

  Post: Luxury on Rails

  Link to comment from October 2, 2024

• Nice piece, Jonathan. Didn’t you also gain some structural improvement during renovation by dealing with a formerly shared wall? Each day which ends without the house collapsing is a good day.

  Post: My Spending Rules

  Link to comment from September 28, 2024

• You really do not want to tap or click on ANY links, in text or emails. Launch the app for that business or point your browser at its official web site, from your bookmarks, and log in. If there is a legitimate issue, you will find an action alert after logging in.

  Post: Stay Safe Out There

  Link to comment from September 24, 2024

• A value tilt is one of the few factors that has boosted total returns over long periods. As long as emotions drive Mr. Market, particularly at tops and bottoms, that should continue. Less price risk and higher dividend yield add to the appeal of value index funds.

  Post: Growth Isn’t Enough

  Link to comment from September 15, 2024

• Some people naturally have less or more lifetime dementia risk: Do you know your APOE genetics? If you have the APOE2 variant, you have somewhat lower risk of developing Alzheimer’s. However, with one copy of the APOE4 variant, you have about 20% higher risk by age 85. And two APOE4 copies means almost twice the risk. One more thing: mono-unsaturated oils like olive oil are not healthy, they are just less unhealthy. Minimizing all oils and saturated fats is far better for your vascular system than liberal use of any oil. And a healthy vascular system lowers your risk for Alzheimer’s, stroke, and cardiovascular disease. Some LTC policies also pay for in-home nursing care which can be useful for years before someone might need the highest level of care.

  Post: Avoiding Alzheimer’s

  Link to comment from September 13, 2024

• Knowing the probability of any possible event in a plan may be less important than fully appreciating its consequences.

  Post: DIY Analytical Tools to Support Financial Decisions

  Link to comment from September 6, 2024

• Three Letter Acronyms (TLA) earned their own TLA a long time ago in certain jargon-laden professions like engineering.

  Post: Rules of the Road by Jonathan Clements

  Link to comment from August 30, 2024

• All of that is relevant to the National Data leak and higher risks of hacks and identity theft. That leak included a slew of sensitive data useful for a variety of cybercrimes. Incredibly irresponsible.

  Post: Don’t Pick Up

  Link to comment from August 29, 2024