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Become a Better Investor Newsletter – 29 June 2024

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Noteworthy this week

  • Inflation might be higher than we think
  • Higher inflation can lead to greater efficiency
  • US Treasuries send worrying signals
  • Julian Assange is free
  • Hillary Clinton proposed to drone Assange

Inflation might be higher than we think: According to the Chapwood Index, the inflation is much higher than we get from US CPI. Is this a better way to measure inflation?

Higher inflation can lead to greater efficiency: This is what recent research from the Fed claims. As Pierre Rochard asked in the comments on the tweet: “Is this a parody account?”

US Treasuries send worrying signals: Liquidity measures in Treasury markets continue to send worrying signals, with the average yield error approaching 4.5.

Julian Assange is free: After enduring nearly 14 years of detention in the UK and 5 years in maximum-security prison for his groundbreaking publishing work, Julian Assange has arrived home in Australia.

Hillary Clinton proposed to drone Assange: Never forget, when Julian Assange was releasing US Government war crimes back in 2010, Hillary Clinton proposed drone striking him.

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Weekly market performance

Click here to see more markets and periods.

Chart of the week

Discussed in the Become a Better Investor Community this week

“You can now access your weekly updated Market Cheat Sheet and Equity FVMR Snapshots!”

Try 1 month of the Become a Better Investor Community for FREE today!
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Podcasts we listened to this week

The Diary Of A CEO with Steven Bartlett – Simon Sinek: “Strong Thigh Muscles = More Friends,” This Is Why You Can’t Make Friends!

“In this conversation, Simon and Steven discuss topics such as how loneliness impacts addiction, why people are struggling to make friends, the truth about TikTok and depression, and the link between thigh muscles and popularity.”

Listen on Apple or Spotify.

Readings this week

Did Inflation Kill the CAPM?

“High inflation and expensive equities lead to a negative risk-return relationship and shrink the equity premium to zero. In years following this “everything expensive” scenario, low-volatility, quality, value, and momentum factors yield sizeable positive premiums.”

Read the article.

 

Book recommendation

Free Agents: How Evolution Gave Us Free Will by Kevin J. Mitchell

“Scientists are learning more and more about how brain activity controls behavior and how neural circuits weigh alternatives and initiate actions. As we probe ever deeper into the mechanics of decision making, many conclude that agency—or free will—is an illusion. In Free Agents, leading neuroscientist Kevin Mitchell presents a wealth of evidence to the contrary, arguing that we are not mere machines responding to physical forces but agents acting with purpose.”

Get the book on Audible or Kindle.

Audible is great; have you tried it? If not, click here to get 2 books for free.

Memes of the week

New My Worst Investment Ever episodes

Enrich Your Future 03: Persistence of Performance: Athletes Versus Investment Managers

In this episode of Enrich Your Future, Andrew and Larry Swedroe discuss Larry’s new book, Enrich Your Future: The Keys to Successful Investing. In this series, they discuss Chapter 03: Persistence of Performance: Athletes Versus Investment Managers.

LEARNING:  The nature of the competition in the investment arena is so different that conventional wisdom does not apply. What works in one paradigm does not necessarily work in another.

Access the episode’s show notes and resources

Published on Become a Better Investor this week

In this episode of Enrich Your Future, Andrew and Larry Swedroe discuss Larry’s new book, Enrich Your Future: The Keys to Successful Investing. In this series, they discuss Chapter 02: How Markets Set Prices.

Listen to Enrich Your Future 02: How Markets Set Prices

McKesson Corporation (MCK US): Profitable Growth rank of 6 was down compared to the prior period’s 4th rank. This is below average performance compared to 360 large Health Care companies worldwide.

Read McKesson Corp – World Class Benchmarking

Nestlé SA (NESN SW): Profitable Growth rank of 3 was same compared to the prior period’s 3rd rank. This is above average performance compared to 550 large Cons. Staples companies worldwide.

Read Nestlé SA – World Class Benchmarking

L’Oréal SA (OR FP): Profitable Growth rank of 2 was down compared to the prior period’s 1st rank. This is World Class performance compared to 550 large Cons. Staples companies worldwide.

Read L’Oréal SA – World Class Benchmarking

Focus Media Information Technology Company Limited (002027 SZ): Profitable Growth rank of 1 was up compared to the prior period’s 4th rank. This is World Class performance compared to 630 large Info Tech companies worldwide.

Read Focus Media Information Technology – World Class Benchmarking

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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