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You Are Your Own Worst Enemy
This Week on The Compound
This Week on The Compound
This week, Jill Schlesinger was joined by Barry Ritholtz, Chairman and Chief Investment Officer at Ritholtz Wealth Management. They discussed Barry’s interest in behavioral finance, the origins of The Big Picture blog, how RWM came to be, and some key lessons for investors.
INSIDE THE COMPOUND
This week, Josh posted a slide deck that highlights the significant changes in the investment business over the past 20 years. These include the introduction of zero-commission trading, cryptocurrencies, the boom in options trading, direct indexing, alternative investments, and a generational change in risk attitudes.
Gen Z like taking risk. They see markets like a video game that can be beaten, or a puzzle that can be solved. They’re young enough to want to experiment and bold enough to embrace the volatility of the market, attempting to make it work in their favor rather than shying away from it. Most importantly, they see trading and investing as a social activity. They want to show their friends what they’re doing and share their strategies with their peers around the world. This makes perfect sense when you think about it. This is the generation that grew up sharing their location, pictures of their food and videos of themselves dancing.
FRIENDS OF THE COMPOUND
We’ve got spot Bitcoin ETFs. It appears Ethereum ETFs are on deck. But what is next for the ETF industry? According to Dave Nadig, there isn’t a whole lot out there to get excited about. That doesn’t there won’t be new ETFs coming down the pike, but think incremental change, not revolution.
Look, there’s plenty of actual innovation left in the old ETF bones. I just think the era of structural innovation is coming to a long slow end, and likely doesn’t pick back up again until we create a framework for tokenization of all different kinds of assets (especially corporate equity).
MERCH
A one-of-a-kind finance-themed Hawaiian shirt just dropped! It is a collab between The Compound and Tropical Bros. The best thing is that 10% of all sales will be donated to No Kid Hungry. Also, for a limited time, Tropical Bros. is having a July 4th sale - use promo code JULY25.
COMING SOON
Next week on TCAF, Josh and Michael will be joined by Prof. Jeremy Siegel and Jeremy Schwartz, Global Chief Investment Officer at WisdomTree Asset Management.
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