Episode 292 - Rob Copeland: Ray Dalio and Bridgewater

With a wealth of experience as a market theoretician and a prolific contributor to financial discourse, today’s guest is uniquely positioned to guide us through the complexities of index fund dynamics. Joining us to discuss the problems that passive investing may be causing in financial markets (and what people should do about it) is Michael Green, Chief Strategist and Portfolio Manager for Simplify Asset Management. Tuning in, you’ll learn about the ramifications of the surging popularity of indexing and the sobering reality of mounting market inelasticity, backed by compelling evidence that underscores the challenges facing today's financial landscape. The insights in this episode extend beyond mere observation, with Mike offering policy recommendations and strategies to address the structural issues affecting our markets. While this conversation is certainly challenging, philosophical, and even alarming, it isn't purely theoretical. It’s a call to action to safeguard the integrity of our financial systems. So, be sure to join us as we navigate the nuances of indexing and passive investing at large, guided by the expertise and foresight of one of finance's most respected voices!   Key Points From This Episode:   (0:05:48) The negative effect that the growth of indexing is having on financial markets. (0:07:37) Insight into the XIV trade that strengthened Mike’s belief in this view. (0:13:49) Defining the problem that indexing is causing (which might seem like a good thing). (0:15:57) How market cap-weighted index funds differ from closet index funds. (0:16:57) Indications that markets are becoming increasingly inelastic over time. (0:19:21) Why flows into cap-weighted index funds differ from the overall aggregate of active. (0:24:21) Active versus passive investing in public versus non-public markets. (0:25:57) The catastrophic event that could be caused by index funds (and how to avoid it). (0:30:51) Why we need to rethink the definition of passive investing and the value of diversity. (0:36:10) Market inelasticity versus inefficiency and the impact of active manager performance. (0:41:38) How investors should shift their strategy to respond to the current market structure. (0:53:01) Regulatory recommendations: who actually needs to step up and do something. (0:54:30) Mike’s outlook on US expected returns, market volatility, and 401(k)s. (1:01:50) Why Bitcoin isn’t the solution to all of our monetary and fiscal policy problems. (1:05:22) The definition of success in Mike’s life (and why it’s completely non-financial). Links From Today’s Episode:   Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ ‘Yes, I give a fig… Thoughts on markets from Michael Green’ — https://www.yesigiveafig.com/ Michael Green on Substack — https://substack.com/@michaelwgreen Michael Green on LinkedIn — https://www.linkedin.com/in/michael-green-9a15142/ Michael Green on X — https://twitter.com/profplum99 Nassim Nicholas Taleb — https://www.fooledbyrandomness.com/ Valentin Haddad — https://sites.google.com/site/valentinhaddadresearch/ Jean-Philippe Bouchaud — https://bouchaud.substack.com/ Marco Sammon — https://marcosammon.com/research/ Ralph Koijen — https://www.koijen.net/index.html David Einhorn — https://twitter.com/davidein   Books From Today’s Episode:   The Black Swan — https://www.amazon.com/dp/081297381X Adaptive Markets — https://www.amazon.com/dp/0691135142   Papers From Today’s Episode:    ‘How Competitive is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3821263 ‘How Competitive is the Stock Market?’ Slides — https://drive.google.com/file/d/1QTxuFI7eK_RJwaV3ncAjX41pEb1anLeM/view ‘Do Active Funds Do Better in What They Trade?’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4624934 ‘The Passive-Ownership Share Is Double What You Think It Is’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4188052 ‘The Arithmetic of Active Management’ — https://www.jstor.org/stable/4479386 ‘Sharpening the Arithmetic of Active Management’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2849071 ‘Long Volatility, Asymmetric Alpha, Negatively Correlated Alpha, Convex Crisis Alpha’ Slides — https://www.macrovoices.com/guest-content/list-guest-publications/3860-logica-capital-active-to-passive-for-macrovoices/file ‘The Greatest Story Ever Sold: The Impact of Passive Investment on Markets’ Slides — https://utahfpa.org/images/downloads/Library_Documents/market_policy_presentation.pdf ‘The Inelastic Markets Hypothesis’ — https://www.nber.org/papers/w28967

In this episode, we delve into the best time to claim your Canada Pension Plan (CPP) benefits. Although the focus of this episode is on Canada, there will be many relevant and valuable insights for our non-Canadian listeners. In our conversation, we discuss the importance of understanding the intricacies of CPP benefits, the fundamentals, and how individuals can optimize their retirement income by making informed decisions. Explore the importance of understanding when to claim CPP benefits, how much future financial security a CPP offers, and why the CPP is one of the most valuable retirement assets for most Canadians. Gain insights into how wage growth ties into CPP benefits, the exceptions to deferring a CPP claim, and what made 2022 different regarding CPP claims. Join us as we uncover the nuances of CPP benefits!   Key Points From This Episode: (0:03:25) Unpack the fundamentals of the Canada Pension Plan (CPP) benefits. (0:10:04) How the timing of making a CPP claim is linked to the benefits. (0:14:15) Ben explains the financial implications of deferring a CPP claim. (0:21:34) Uncover common approaches to identify the best time to claim a CPP. (0:26:06) Learn about the situations when it is best not to defer a CPP claim. (0:31:12) Why the CPP is one of the most valuable retirement assets for most Canadians. (0:39:11) The after-show: ideas for the podcast, feedback, segregated funds, and more! Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/ Prof. Meir Statman on Twitter — https://twitter.com/meirstatman  Episode 258: Prof. Meir Statman — https://rationalreminder.ca/podcast/258 The Canadian Institute of Actuaries (CIA) — https://www.cia-ica.ca/ Society of Actuaries (SOA) — https://www.soa.org/ FP Canada — https://www.fpcanada.ca/ When Should You Start CPP? — https://www.youtube.com/watch?v=r9vYji99fhk CE Drive with Jason Watt — https://cedrive.podbean.com/ Episode 137: David Blanchett: Researching Retirement — https://rationalreminder.ca/podcast/137 Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — https://rationalreminder.ca/podcast/254 Episode 289 - Retiring Retirement Income Myths with the Retirement Income Dream Team — https://rationalreminder.ca/podcast/289 Jason Yi on LinkedIn — https://www.linkedin.com/in/jason-yi-cpa-ca-56544446/ Episode 225: The Index Fund "Tipping Point” — https://rationalreminder.ca/podcast/225   Books From Today’s Episode:   Wealthier — https://wealthierbook.com/ The Algebra of Wealth — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024 Sleep Well, Take Risks, Squish the Peas — https://www.amazon.com/Sleep-Well-Take-Risks-Squish/dp/0757324711/   Papers From Today’s Episode:    ‘The CPP Take-Up Decision: Risks and Opportunities’ — https://www.soa.org/4a223f/globalassets/assets/files/resources/research-report/2020/2020-cpp-take-up-decision.pdf ‘Get the Most from the Canada & Quebec Pension Plans by Delaying Benefits’ — https://www.fpcanadaresearchfoundation.ca/media/5fpda5zw/cpp_qpp-reseach-paper.pdf ‘Financial Advisor Compensation Structure and Client Equity Allocations’ — https://www.tandfonline.com/doi/full/10.1080/15427560.2023.2294812

Today, we welcome back Prof. Meir Statman to talk about the role of finances in well-being. We investigate the role of finances in well-being with Prof. Meir Statman through the lens of his new book, A Wealth of Well-Being. Discover why wealth advisors must evolve into well-being advisors and uncover the impact of finances on various life domains. From dating to education, we discuss the profound financial correlations shaping happiness and well-being. Tune in now! Key Points From This Episode: (0:00:15) Introduction to returning guest, Prof. Meir Statman. (0:02:15) How well-being fits into the study of behavioural finance. (0:06:52) Discover the role of finances in different domains of life well-being. (0:10:42) Hear why wealth advisors need to change to being well-being advisors. (0:14:59) Explore the relationship between finances, social status, and overall well-being. (0:19:46) Whether too much self-control in spending can be a problem. (0:22:46) The effect of finances on dating and marriage and how work plays into well-being. (0:26:42) Find out how education fits into well-being and why it is a major regret for people. (0:32:36) Gain insights into how religion and faith can enhance well-being.   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/ Prof. Meir Statman on X — https://twitter.com/meirstatman  Episode 258: Prof. Meir Statman — https://rationalreminder.ca/podcast/258   Meir's Book: A Wealth of Well-Being — https://www.amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675

In this episode, we are joined by renowned expert Abby Sussman to unpack how individuals form judgments and make decisions about their finances. Abby is a distinguished professor of marketing at the University of Chicago Booth School of Business whose expertise lies at the intersection of psychology, economics, and finance. In our conversation, we discuss the nuances of financial decision-making and how personal beliefs influence our financial choices. Discover the source of reference points for financial well-being and how expense prediction biases play a role in making poor financial decisions. We explore the effectiveness of budgeting, the nuances of product sensitivity, and the drivers of excessive consumer consumption. Gain insights into navigating the complexities of financial decision-making, the psychology behind it, how AI can help you make better financial decisions, and much more. Tune in to gain a deeper understanding of the psychology behind financial decisions and uncover strategies to optimize your financial future with Abby Sussman!   Key Points From This Episode:   (0:04:45) Explore the difference in how we perceive others' wealth versus our own. (0:08:25) Drivers of the differences in perception and their impact on financial decision-making. (0:11:43) Steps to reduce excessive consumption and how personal future wealth perceptions influence financial decision-making. (0:16:58) Discover the source of the reference point people use when considering their wealth. (0:18:53) How to make better financial decisions and the role of peoples’ expectations. (0:20:20) Unpack expense prediction bias and the problems it creates. (0:22:55) Methods used to predict expenses and what people typically budget for. (0:29:00) Pragmatic advice for reducing the influence of expense prediction bias. (0:31:53) Whether prediction bias manifests in long-term planning, such as retirement. (0:33:14) Find out if setting a budget is common practice and how it impacts financial health. (0:37:36) Trends in actual spending in relation to expenses budgeted for. (0:39:31) She explains how people categorize expenses and react to insufficient funds. (0:42:40) Product sensitivity and how attitudes toward investment products vary. (0:48:21) Interventions to help people choose better financial products. (0:49:40) Areas of research she is most interested in and her opinion on the role of AI. (0:55:54) Abby shares her definition of success.   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Abby Sussman on LinkedIn — https://www.linkedin.com/in/abigail-sussman-ab4427/ Abby Sussman on X — https://twitter.com/abbysussman The University of Chicago Booth School of Business — https://www.chicagobooth.edu/ Society for Judgment and Decision Making — https://sjdm.org/ Episode 153: Prof. Johanna Peetz — https://rationalreminder.ca/podcast/153 Epidose 296: Adam Alter — https://rationalreminder.ca/podcast/296 Panel Study of Income Dynamics — https://psidonline.isr.umich.edu/ Consumer Financial Protection Bureau — https://www.consumerfinance.gov/   Papers From Today’s Episode:    ‘Understanding and Neutralizing the Expense Prediction Bias: The Role of Accessibility, Typicality, and Skewness’ — https://doi.org/10.1177/00222437211068025 ‘The Exception Is the Rule: Underestimating and Overspending on Exceptional Expenses’ — https://doi.org/10.1086/665833 ‘The Role of Risk Preferences in Responses to Messaging About COVID-19 Vaccine Take-Up’ — https://doi.org/10.1177/1948550621999622 ‘The Role of Mental Accounting in Household Spending and Investing Decisions’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3051415 ‘How Consumers Budget” — https://doi.org/10.1016/j.jebo.2022.09.025 ‘Financial Product Sensitivity Predicts Financial Health’ — https://doi.org/10.1002/bdm.2142

In this episode, we unpack key tenants of investing and the quality of financial advice in Canada's banking industry. In our conversation, we present a list of lessons we have learned about investing, which has been consolidated from contributions by the Twitter community and the Rational Reminder Community. In our conversation, we discuss ways to beat the market, how narratives can impact the economy, and why timing the market is a bad investment approach. Discover why performance chasing is not a successful strategy, why incentives matter, and why economic growth is a poor predictor of investment success. Learn about the nuanced relationship between expected economic growth and stock returns, why wealth does not give you access to market-beating investments, and the effectiveness of investing in low-cost total market index funds. Finally, in our after-show segment, we delve into the quality of financial advice provided by Canada's six big banks, investment strategies, listener reviews, and much more. Gain valuable insights into navigating the complexities of investing and learn why simplicity, discipline, and skepticism towards overly complex or costly strategies are vital for financial success. Tune in now!   Key Points From This Episode:   (0:00:00) Introduction and outline of today’s topic: The Most Important Lessons in Investing. (0:04:55) Why you cannot outsmart the markets and what it takes to beat the market. (0:07:47) The notion that "this time is always different" during times of financial upheaval. (0:10:45) Explore the forward-looking nature of markets and their impact on decision-making. (0:12:08) Unpack the unreliability of market forecasts for making investment decisions. (0:14:48) Hear why time in the market beats timing the market. (0:16:11) Important aspects of funds and why investors should not chase portfolio performance. (0:19:20) Learn about the role of incentives in the distribution of financial information. (0:25:09) Common misconceptions about the link between economic growth and stock returns. (0:27:28) We discuss the importance of good financial planning over portfolio management. (0:30:51) Uncover the relationship between risk and expected returns in financial markets. (0:32:33) How the risk-return relationship changes over different time horizons. (0:34:59) Why fees and taxes matter and the nuances of permanent insurance.  (0:41:55) Find out why there is no such thing as a perfect investment strategy. (0:44:51) Tailoring your investment portfolio to meet your goals and sticking to it. (0:46:48) Investigate why there is no such thing as a passive investment. (0:50:59) Understanding why wealth does not provide access to market-beating strategies. (0:53:22) Why diversification is the only free lunch in investing. (0:58:58) Recommendations and pitfalls to avoid when assessing investments. (1:01:02) What the structure of a financial portfolio looks like for most people. (1:03:11) The aftershow: the state of Canadian banks, investment advice, and more.     Links From Today’s Episode:   Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP The Economist — https://www.economist.com/  ARK Invest — https://ark-funds.com/ The Canadian Investor Podcast — https://thecanadianinvestorpodcast.com/ Episode 257: Giorgio Ugazio (Mr. RIP) — https://rationalreminder.ca/podcast/257 Mr. RIP on YouTube — https://www.youtube.com/@mr_rip The Money Scope Podcast: Episode 9 — https://moneyscope.ca/2024/03/15/episode-9-taxable-investing-in-canada/ Book a meeting with a PWL Financial Planner —    Books From Today’s Episode:   A Wealth of Well-Being — https://www.amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675 Wealthier — https://wealthierbook.com/   Papers From Today’s Episode:    ‘Where’s the Beef?’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4035890 ‘SPIVA® Canada Scorecard’ —  https://www.spglobal.com/spdji/en/documents/spiva/spiva-canada-year-end-2023.pdf ‘2018 Paper’ — https://doi.org/10.1093/rfs/hhy046 ‘CBC Article’ — https://www.cbc.ca/news/business/marketplace-hidden-camera-banks-1.7142427  

Dr. Randall Stutman is an author, highly sought-after speaker, and executive leadership coach to some of the world’s most exceptional CEOs, billionaires, and hedge fund managers. As the founder of the Admired Leadership Institute, he is widely recognized as a world-class authority on leadership strategy and style. Today, Dr. Stutman joins us to discuss the behaviours and skills that make admired leaders and how you can translate those characteristics and strategies into your financial decision-making process. Tuning in, you’ll learn about the importance of followership, find out why admired leadership is so rare, and hear some practical advice to help you make better decisions. We also discuss why you should actually disagree with your clients more often, why relationships are the cornerstone of any business, questions to ask yourself to find the right client or financial advisor, and much more. Don’t miss this fascinating and broad-reaching conversation on leadership and decision-making with specific applications for financial advice relationships!   Key Points From This Episode:   (0:03:36) A typical approach to leadership development (and why it doesn’t work). (0:07:21) The two key qualities or characteristics of an admired leader. (0:09:23) Benefits of followership to create change and implement decisions. (0:10:28) A simple definition of leadership and why not everyone can be an admired leader. (0:13:08) Why great leaders and great organizations are values-driven. (0:16:15) Ways that consensus decision-making can hurt or strengthen an organization. (0:23:02) Other shortcomings in the decision-making process and how to avoid them. (0:27:29) Practical advice for financial advisors to become admired leaders. (0:32:33) Why checklists should never be the focus of a conversation or relationship. (0:33:52) Traits of admired leaders that financial consumers can emulate. (0:35:55) The best way for a couple to reach agreed-upon financial goals. (0:37:29) Tips for financial advisors to give better feedback and maintain relationships. (0:44:30) What a successful relationship with a financial advisor looks like. (0:46:07) How to avoid outcome bias for people who have been successful in the past. (0:48:00) Rapid-fire time management strategies, hallmarks of effective meetings, what’s missing in virtual communication, what motivates people, and more. (0:55:46) A very important metric by which Dr. Stutman defines success.   Links From Today’s Episode:   Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Admired Leadership Institute — https://admiredleadership.com/ Episode 238: Prof. Ralph Keeney — https://rationalreminder.ca/podcast/238   Books From Today’s Episode:   Working Through Conflict: Strategies for Relationships, Groups, and Organizations — https://www.amazon.com/dp/0367461471/ Communication in Legal Advocacy (Studies in Communication Process) — https://www.amazon.com/dp/B09T21F8KX/  

As human beings, our brains are wired to solve problems. This can make long-term investment strategies, like passive investing, surprisingly challenging, especially if you’re not accustomed to the ups and downs of the market – it can feel pretty unintuitive to stay the course when your instinct is to take more active steps to solve the problem! So, how can investors remain firm in their strategy and not get spooked by market changes? Joining us today to unpack this question is financial journalist, Nicolas Bérubé, whose new book From Zero to Millionaire: A Simple and Stress-Free Way to Invest in the Stock Market serves as a guide to investors on how to grow their wealth and achieve good portfolio diversification at a low cost. We talk with him about the contents of his book, his observations on financial media and its effect on investors, how to stay committed when making long-term investments, and more. We also spend the top half of the show discussing a popular idea we’ve seen posted by influencers online, namely that investing in stocks will give you a return of 10% or more per year on average, and the flaws in their arguments. Tune in for a deep dive into investor psychology, financial media, and much more!   Key Points From This Episode:   (0:01:42) A breakdown of the flaws in the trending online theory being posted by influencers claiming that investing in stocks will give you a return of 10% or more per year on average. (0:09:17) Taking a longer-term view of the US stock market (and other global markets), how it’s changed in the past 100 years, and what this means for investors today. (0:16:12) Relevant findings from various papers on US and global stock market returns, US stock market valuations, performance, the impact of survivorship bias, and more. (0:27:01) Why it can be so difficult to capture market return as an investor, and a breakdown of how best to approach historical data. (0:33:33) Talking with Nicolas Bérubé about what he learned from his failed options trade before he started studying markets and the research that helped him become a market optimist. (0:38:24) An overview of Indo-American investor, Mohnish Pabrai, and what Nicolas learned from meeting him. (0:41:05) Unpacking the difference between investing in the stock market and playing in the stock market and the importance of having an infinite vision when investing. (0:44:52) How Nicolas would explain the benefits of index funds and index investing to a novice and why behaviour is the number one obstacle to investor outcomes. (0:48:29) The effect of financial media on investors from Nicolas’s perspective as a journalist. (0:51:52) Advice on whether to delegate your investment actions to a financial professional or do it yourself ie. automatic transfers using a robo advisor. (0:56:14) What people should be looking for if they do seek out financial advice and Nicolas’s opinion on what investors struggle with most. (0:59:58) Aftershow section: future topics for the show, why we’re excited to see more of Mark McGrath, updates on our 24 in 24 reading challenge, upcoming meetups, and more.   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP 24 in 24 Reading Challenge — https://rationalreminder.ca/24in24 Nicolas Bérubé on LinkedIn — https://www.linkedin.com/in/nicolas-b%C3%A9rub%C3%A9-27b9b111b/ From Zero to Millionaire — https://fromzerotomillionaire.com/ The Motley Fool — https://www.fool.com/ Rob Carrick — https://www.theglobeandmail.com/authors/rob-carrick/ Andrew Hallam — https://andrewhallam.com/ Somebody Feed Phil — https://www.imdb.com/title/tt7752034/ Everybody Loves Raymond — https://www.imdb.com/title/tt0115167/ Shake Shack — https://shakeshack.com/#/ Figure 01 AI Robot Video on LinkedIn — https://www.linkedin.com/feed/update/urn:li:activity:7173681028664901634/   Books From Today’s Episode:   From Zero to Millionaire: A Simple and Stress-Free Way to Invest in the Stock Market — https://fromzerotomillionaire.com/ The Algebra of Wealth: A Simple Formula for Financial Security — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024 A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing — https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380 Everyone Believes It; Most Will Be Wrong: Motley Thoughts on Investing and the Economy — https://www.amazon.com/Everyone-Believes-Most-Will-Wrong-ebook/dp/B00655BGBG The One-Page Financial Plan: A Simple Way to Be Smart About Your Money — https://www.amazon.com/One-Page-Financial-Plan-Simple-Smart/dp/1591847559 Setting the Table: The Transforming Power of Hospitality in Business — https://www.amazon.com/Setting-Table-Transforming-Hospitality-Business/dp/0060742763   Papers From Today’s Episode:    ‘The Equity Premium’ — https://onlinelibrary.wiley.com/doi/full/10.1111/1540-6261.00437 Scott Cederburg research: ‘Long-Horizon Losses in Stocks, Bonds, and Bills: Evidence from a Broad Sample of Developed Markets’ — https://www.paris-december.eu/sites/default/files//papers/2023/4393_scederburg_2023_complete.pdf Jules H. Van Binsbergen Paper: Is The United States A Lucky Survivor: A Hierarchical Bayesian Approach — https://rodneywhitecenter.wharton.upenn.edu/wp-content/uploads/2020/12/30-20.Wachter.VanBinsbergen.pdf

Feeling stuck is a common human experience and almost all of us will go through it at some point in our lives. Whether it’s relationship struggles, dissatisfaction with work, an inability to progress financially, or a pending midlife crisis, all of these situations can bring up a range of mixed emotions like anxiety, fear, anger, and even numbness. We are joined today by Adam Alter, whose new book Anatomy of a Breakthrough: How to Get Unstuck When It Matters Most serves as a much-needed guide to help readers escape inertia and flourish in the face of freedom. Adam is a professor of marketing at New York University's Stern School of Business with an affiliated appointment in the New York University Psychology Department. His research is primarily focused on judgment, decision-making, and social psychology, and his two previous books, Irresistible and Drunk Tank Pink, are both highly acclaimed New York Times best-sellers. In today’s episode, we talk with Adam about the concept behind Anatomy of a Breakthrough, the many forms that feeling stuck can take, and what he has learned about getting unstuck. Tuning in you’ll learn about the fundamentals of goal-setting, why striving for excellence is infinitely more sustainable than settling for nothing less than perfection, and how learning to enjoy the journey will help you find meaning and avoid the aimlessness that can come after achieving your goal. We also get into the nature of breakthroughs, the role of luck and creativity, plus a whole lot more. To hear all of Adam’s thought-provoking insights and practical advice on getting unstuck, be sure to tune in! Key Points From This Episode: (0:00:18) Introducing today’s guest, Adam Alter, and the concept behind his new book Anatomy of a Breakthrough. (0:05:41) An overview of the many ways that you can be financially stuck, the role of financial advisors, and when you should seek out help and guidance. (0:09:04) Insight into the different types of stuckness and how to recognize when you’re stuck. (0:12:42) Why people tend to question their lives with the arrival of a new decade. (0:17:10) Unpacking the risks and benefits of major life decisions and the concept of lifequakes. (0:20:25) The boundless nature of goal-setting and how it impacts the search for contentment. (0:23:27) How lifequakes influence the search for contentment and how to prepare for them. (0:26:00) What a breakthrough looks like, how it interacts with creativity, and the role of luck. (0:35:17) A breakdown of the random impact rule; particularly in the context of careers. (0:38:01) One key practical difference between striving for excellence versus perfection. (0:40:05) The originality trap: why trying to do something completely new can cause paralysis. (0:43:13) Understanding the plateau effect: why being stuck can actually be a sign of progress. (0:44:23) The fundamentals of goal setting: the dangers of setting unachievable goals and the benefits of making it about the journey rather than the destination. (0:49:03) Advice for processing the success of other; especially in the age of social media, and how Adam defines success.   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Adam Alter — https://adamalterauthor.com/ Adam Alter on LinkedIn — https://www.linkedin.com/in/adamleealter Adam Alter on Twitter — https://twitter.com/adamleealter Hal Hershfield — https://www.halhershfield.com/ Bruce Feiler — https://www.brucefeiler.com/   Books From Today’s Episode: Anatomy of a Breakthrough — https://adamalterauthor.com/anatomy Irresistible — https://adamalterauthor.com/irresistible Drunk Tank Pink — https://adamalterauthor.com/drunk-tank-pink

In this episode, we explore the intricate world of home-country bias in investment decision-making and learn the secret sauce to effective communication and writing. We start by discussing the definition and influence of home-country bias and explore why investors tend to overweight their portfolios with domestic equities despite global opportunities. We dissect the home bias puzzle, the rationality behind bias, and the conditions under which home-country bias makes sense. Then, Mark McGrath joins us to unpack the complexities of segregated funds and why it might not be the investment product you were hoping for. Following that, we sit down with  Todd Rogers, a prominent behavioural scientist and professor, to discover the science behind effective communication. He explains how we adapt to different communication styles and techniques over time, the foundations of effective communication, and much more. Be sure to tune in as we unravel the complexities of investing, navigate the world of behavioural science, and bring you the tools you need for financial success! Key Points From This Episode: (0:00:00) Episode introduction and what listeners can expect. (0:01:30) Definition of home-country bias and its influence on investors. (0:04:25) Unpack the home bias puzzle and Canadian home bias trends. (0:08:27) Discover the conditions when home bias may make sense. (0:13:10) Relative economic standing: an important aspect of home-country bias. (0:15:00) Explore home-country bias through a quantitative lens. (0:20:28) Common concerns of overweighting a small market cap. (0:27:21) Mark to Market: the good, bad, and complicated side of segregated funds. (0:31:24) Dissect the proposed benefits of segregated funds. (0:39:07) Discover the drawbacks and pitfalls of segregated funds. (0:44:05) Alternatives to segregated funds and Mark’s main takeaways. (0:46:50) Highlights from our conversation with Professor Vanessa Bohns. (0:49:38) Introducing today’sguest Todd Rogers, behavioural scientist and professor. (0:51:37) Learn about the science behind effective writing and communication. (0:53:48) Thedecision-making process when receiving new information. (0:56:18) Todd shares thesix principles of effective writing. (0:58:28) When to send a message, why less is more, and tips for effectively communicating. (1:06:32) Advice for using emojis and hyperlinks and the impact of bolding and highlighting. (1:12:35) The impact of AI on effective writing and the importance of good writing. (1:19:45) Final takeaways, book recommendations, listener reviews, and more!   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Home-country Bias YouTube Video — https://www.youtube.com/watch?v=qYedjI03Q0g Assuris — https://assuris.ca Canadian Investor Protection Fund — https://www.cipf.ca/ The Money Scope Podcast — https://moneyscope.ca/ Professor Vanessa Bohns — https://www.vanessabohns.com/ Professor Vanessa Bohns on X — https://twitter.com/profbohns Professor Vanessa Bohns on Instagram — https://www.instagram.com/profbohns/ Professor Vanessa Bohns on LinkedIn — https://www.linkedin.com/in/vanessa-bohns-33219710/ Professor Vanessa Bohns on Goodreads — https://www.goodreads.com/author/show/21035835.Vanessa_Bohns Todd Rogers on LinkedIn — https://www.linkedin.com/in/todd-rogers-6ba447/ Todd Rogers on X — https://twitter.com/Todd_Rogers_ Harvard University — https://www.harvard.edu/ Analyst Institute — https://analystinstitute.org/ EveryDay Labs — https://www.everydaylabs.com/ The Behavioural Insights Team — https://www.bi.team/ Behavioral Science & Policy Association (BSPA) — https://behavioralpolicy.org/ Six Principles Checklist — GPT-4 — https://openai.com/research/gpt-4 Women's Wealth: Investing Basics for Women Webinar —   Books From Today’s Episode: You Have More Influence Than You Think — https://www.amazon.com/dp/1324005718/ Writing for Busy Readers — https://www.amazon.com/Writing-Busy-Readers-Communicate-Effectively/dp/0593187482 Index Funds: The 12-Step Recovery Program for Active Investors — https://www.amazon.com/Index-Funds-12-Step-Recovery-Investors-ebook/dp/B0CL2Z23CT/ The Elements of Style — https://www.amazon.com/Elements-Style-Fourth-William-Strunk/dp/020530902X The Psychology of Money — https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681 The Fund — https://www.amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934 Anatomy of a Breakthrough — https://www.amazon.com/Anatomy-Breakthrough-Unstuck-When-Matters/dp/1982182962 The Score That Matters — https://www.amazon.com/Score-That-Matters-Excellence-Yourself-ebook/dp/B0CGZ8HRXD The Algebra of Wealth — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024   Papers From Today’s Episode: ‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — https://dx.doi.org/10.2139/ssrn.4590406 ‘Global equity investing: The benefits of diversification and sizing your allocation’ — https://corporate.vanguard.com/content/dam/corp/research/pdf/Global-equity-investing-The-benefits-of-diversification-and-sizing-your-allocation-US-ISGGEB_042021_Online.pdf

In this episode, we delve into the world of mindfulness and meditation with renowned author and meditation advocate, Dan Harris. In our conversation, Dan shares his personal journey from a high-stress career in the news to discovering the transformative power of mindfulness meditation. We explore Dan's best-selling book, 10% Happier which chronicles his exploration into mindfulness practices after experiencing a panic attack on live television. We discuss how Dan's quest for inner peace led him to explore meditation, the core principles of Dan's 10% Happier philosophy, and how mindfulness can lead to incremental but significant improvements in happiness. Discover why Buddhism is a religion that skeptics can line up behind, the intersection of mindfulness and financial decision-making, and the importance of empathy and self-awareness for financial advisors. Gain insights into applying mindfulness principles to everyday life, strategies for building the skill of happiness, the basic steps to start meditating, and much more! Join us on this insightful journey as we explore how mindfulness can truly transform lives and empower individuals to live with greater purpose, happiness, and fulfillment with Dan Harris! Key Points From This Episode: (0:04:49) Dan shares his journey from a high-stress career in news to discovering mindfulness meditation. (0:06:48) What mediation is, why he initially thought it was nonsense, and why he changed his mind. (0:09:11) Unpack the idea of mindfulness and the science that backs up the claims. (0:11:22) The main thesis of Buddhism and its link to meditation.  (0:14:02) How mindfulness can help manage emotions, improve focus, and enhance relationships in everyday life.  (0:15:48) He shares how difficult it was for him to embrace the concept of meditation.  (0:21:12) Discover what motivated him to explore meditation and mindfulness practices.  (0:21:12) Recommendations to start meditating and how long it takes to form a habit of it. (0:26:56) Insights on applying mindfulness principles to financial decision-making.  (0:28:29) Explore the benefits of meditation for the comparing mind and the wanting mind.  (0:30:59) How mindfulness meditation has influenced his financial decision-making.  (0:33:20) The principles of 10% Happier from the perspectives of a client and advisor.  (0:35:45) Strategies for making your own happiness and cultivating contentment.  (0:41:03) Transitioning from a career in news to focusing on mindfulness advocacy and podcasting.  (0:42:32) His biggest lessons since writing the book and his most influential podcast guest.  (0:48:26) Hear about Dan’s version of success and happiness. Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Dan Harris — https://danbharris.komi.io/ Dan Harris on X — https://twitter.com/danbharris Dan Harris on Instagram — https://www.instagram.com/danharris/ Dan Harris on Facebook — https://www.facebook.com/DanHarrisABC Dan Harris on YouTube — https://www.youtube.com/c/TenPercentHappier Dan Harris on TikTok — https://www.tiktok.com/@danbharris 10% Happier — https://www.tenpercent.com/ Ten Percent Happier Podcast — https://www.tenpercent.com/podcast ‘Finding and Funding a Good Life’ — https://www.pwlcapital.com/finding-and-funding-a-good-life/ Dan Harris: Celebrating 10 Years of 10% Happier — https://www.symphonyspace.org/events/vp-dan-harris-10-happier-10-year-anniversary Emma Seppälä — https://www.emmaseppala.com/ Dalai Lama — https://www.dalailama.com/ Joseph Goldstein — https://www.dharma.org/teacher/joseph-goldstein/ Books From Today’s Episode: 10% Happier — https://www.goodreads.com/en/book/show/18505796