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The Problem With Conviction
This Week on The Compound
This week on The Compound
This week, Josh and Michael, fresh off their trip to Los Angeles, were joined by Jeff deGraaf of Renaissance Macro Research. They discussed the problem with conviction, how to best use momentum, and the risk of higher interest rates to the stock market. (Listen)
INSIDE THE COMPOUND
Josh Brown had a big post this week talking, in part, about the challenges of finding organic growth for RIAs. This problem makes it tempting to make investing promises that are hard to keep.
That truth - that anything you do to reduce volatility in the short-term is likely to reduce your future returns over the long-term - is the main message. We don’t teach people to avoid risk, we teach them which risks to take, how much risk is necessary and then prepare them for the fact that upside comes from enduring potential downside. Seems like such an obvious truth and yet there are grown adults - amateur and professional - who spend their entire lives looking for a way around it.
FRIENDS OF THE COMPOUND
Prior TCAF guest, Morgan Housel wrote a great post about how debt affects life outcomes. Not surprisingly, it is well worth a read.
I think this is the most practical way to think about debt: As debt increases, you narrow the range of outcomes you can endure in life.
MERCH
Spring is here, and the sun is out. ☀️ Grab this classic TCAF dad hat and much more at idontshop.com.
COMING SOON
Next week on TCAF, Josh and Michael welcome back to the show Brian Belski, Chief Investment Strategist at BMO Capital Markets.
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