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Become a Better Investor Newsletter – 23 March 2024

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Noteworthy this week

  • BoJ moves to positive rates
  • QE since 2008
  • We’re quickly getting poorer
  • Emerging markets go with coal
  • Market volatility is a fee

BoJ moves to positive rates: The Bank of Japan raised interest rates for the first time in 17 years. The short-term policy range in Japan is now 0.0-0.1%.

QE since 2008: “Nothing is so permanent as a temporary government program.” – Milton Friedman

We’re quickly getting poorer: A 4% inflation rate means your purchasing power is cut in half every 17 years. Let that sink in.

Emerging markets go with coal: While the West reduces its use of coal for energy generation, massive emerging economies like China and India have coal as their main power source.

Market volatility is a fee: “Fee: A cost of admission that’s worth paying to get something worthwhile in return.”

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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

“The new ASIR FVMR Thailand is now available. Since inception, it has gained 118% versus the SET 100 Index’s return of 23%.”

Try 1 month of the Become a Better Investor Community for FREE today!
You can cancel at any time. Click here to learn more.

Podcasts we listened to this week

RWH042: SURVIVE & THRIVE W/ GUY SPIER: PART 1

“Here, in Part 1, Guy discusses the art of compounding wealth over decades, drawing on lessons he’s learned from Warren Buffett, downhill ski racers, & his own mistakes.”

Listen to the episode

RWH043: SURVIVE & THRIVE W/ GUY SPIER: PART 2

“Here, in Part 2, Guy shares insights on how to succeed over the long run by avoiding dumb investment behavior, building the right relationships, and recognizing our weaknesses.”

Listen to the episode

Readings this week

Breaking Bad Momentum Trends

“Perhaps the most well-documented and researched asset pricing anomaly is momentum—the tendency of past winner stocks to outperform past loser stocks over the next several months. While average time-series momentum (trend following) returns have been high, strategies employing trend following have also experienced huge drawdowns (crashes) at turning points (which mark reversals in trend from uptrend to downtrend or vice versa). These turning points have been called momentum’s ‘Achilles heel.’”

Read article

Book recommendation

As Gods Among Men: A History of the Rich in the West by Guido Alfani

“How the rich and the super-rich throughout Western history accumulated their wealth, behaved (or misbehaved) and helped (or didn’t help) their communities in times of crisis.”

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

ISMS 40: Larry Swedroe – Market vs. Hedge Fund Managers’ Efficiency

In this episode of Investment Strategy Made Simple (ISMS), Andrew gets into part two of his discussion with Larry Swedroe: Ignorance is Bliss. Today, they discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this series, they discuss mistake 30: Do You Fail to Understand the Tyranny of the Efficiency of the Market? And mistake 31: Do You Believe Hedge Fund Managers Deliver Superior Performance?

LEARNING: Discovering anomalies or mistakes reinforces and makes the market more efficient. Hedge fund managers demonstrate no greater ability to deliver above-market returns than do active mutual fund managers.

Access the episode’s show notes and resources

Published on Become a Better Investor this week

What does it mean to “commit” to transformation? What does “transformation” mean? In this episode, John Dues and host Andrew Stotz discuss Point 14 of Dr. Deming’s 14 Points for Management – with John’s interpretations for educators.

Listen to Commit to Transformation: Deming in Schools Case Study (Part 20)

Rumo SA (RAIL3 BZ): Profitable Growth rank of 8 was down compared to the prior period’s 7th rank. This is below average performance compared to 1,460 large Industrials companies worldwide.

Read Rumo SA – World Class Benchmarking

Stellantis NV (STLAM IM): Profitable Growth rank of 2 was same compared to the prior period’s 2nd rank. This is World Class performance compared to 960 large Cons. Disc. companies worldwide.

Read Stellantis NV – World Class Benchmarking

WPG Holdings Limited (3702 TT): Profitable Growth rank of 8 was same compared to the prior period’s 8th rank. This is below average performance compared to 660 large Info Tech companies worldwide.

Read WPG Holdings – World Class Benchmarking

Amata Corporation Public Company Limited (AMATA TB): Profitable Growth rank of 3 was same compared to the prior period’s 3rd rank. This is above average performance compared to 310 medium Real Estate companies worldwide.

Read Amata Corporation – 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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