Apr 21, 2022
Many people have been contemplating the death of bonds, which is
why for the main topic of today’s episode we’re going to be talking
about their immortality. After a vicarious trip to The Masters, an
overview of The Art of Insubordination, and an explanation
of why we’re concerned about the changes that WealthSimple has made
to their business model, we get into the world of bonds. Bond
returns have not been good this year, and bond index funds are down
all round, but that doesn’t mean that bonds are necessarily the
riskier choice of investment in the long term, or that you should
be feeling disheartened about them. Tune into our conversation
today to hear why!
Key Points From This Episode:
- The incredible experience of attending The Masters, and how you
can win a ticket. [0:02:21]
- Three business-focused TV series that we highly recommend.
- Upcoming guests, and some very positive listener reviews.
- An overview of The Art of Insubordination.
- Why change is challenging for most people, and the value of
creating environments that encourage dissent.
- How dissenters can make their actions more impactful, and what
leaders can do to encourage dissent.
- Key takeaways from The Art of Insubordination.
- Why we are disappointed with the changes that Wealthsimple has
made to their business. [0:18:47]
- Nuances that Wealthsimple has left out of their venture capital
- Today’s main topic: the immortality of bonds.
- Statistics which highlight the fact that bond returns have not
been good this year. [0:33:51]
- Why volatility is not the only risk that matters.
- How Ken French defines risk. [0:37:51]
- Some of the pros and cons of bonds and stocks.
- Calculations which show that stocks are not necessarily less
volatile than bonds in the long run.
- The five components of long-run predictive variance.
- An explanation of a model we created for the dispersion of
- Why now is the time to get excited about bonds.
- Today’s first misconception: high growth
sectors/regions/companies are good investments.
- Today’s second misconception: you can lose all of your money in