The Cocktail Party
This week we discuss how conversations at cocktail parties give us a sense of where we are in the market cycle, take a history tour of Japan's 1980s craze, and share our latest investing mistake.
Dear Clients and Friends of Farrer Wealth Advisors, we are pleased to bring you the Farrer Wealth Biweekly Blast, which includes our latest blog posts, fun facts, and general articles we find interesting. Happy reading and happy investing!
Latest Blog Post
The Cocktail Party - A recent social event we attended shed light on where we are in the market cycle of various assets. In our latest blog posts we use Peter Lynch’s cocktail party framework to discuss where we are in the equity market cycle and how it is overshadowed by alternate assets. Click here to read it.
Farrer Fun Fact
Bubble? What Bubble?: According to this chart posted by Fidelity, the cumulative flows into US equity funds/MFs is barely above 2009 levels. (source in point 6 below)
Articles and Videos of the Week
This thread on the writer’s 100 investing opinions is a must read, we found ourselves nodding along with pretty much all of it.
A corporate tax seminar on the facts/fiction related to the topic was far more interesting than the title suggests. It really makes you wonder if politicians truly understand corporate taxes. We know it sounds super boring, but its only 20mins (listen on 2x speed!) and packed full of interesting analysis.
This writer gave us a history lesson on how insane things got in Japanese financial markets in the late 1980s, and it is fascinating (our favorite: "The 'Bubble Lady', a waitress turned restaurant owner, borrowed > $2 billion in 1987 to speculate in the stock market”).
For those in Singapore, we were sent this comparison between local roboadvisors EndowUs and Stashaway, and it confirmed why we use EndowUS for all our SRS/CPF money (not an endorsement, pls do your own diligence on these services).
We would be quite dishonest if we only shared our investment successes, so please click here to read our thesis on Redbubble (ASX: RBL). We definitely got the timing of this and perhaps some of the assumptions wrong. But we think the risk/reward here still look attractive (.. again… not investing advice).
Despite the brutal rotation out of growth stocks over the last few months, this post describes how in general equities are not in a bubble. Do take the data and interpretations of it with a pinch of salt though.