Benjamin Felix

Michael Burry says we should get out of indexing. Jim Cramer says it’s time to jump in. These are interesting times in the world of investing! On today’s episode, we discuss Burry’s recent claims about passive investing and advise on a plan of action should he turn out to be right.

Most of the arguments from dividend lovers boil down to being able to successfully select individual stocks. This is not something most people can do consistently. Even in a supposed stock-picking environment, there is no reason to believe that dividends, or the growth of dividends, would be an indication of a good stock to own.

We are doing another variety show for all of you and this week we cover some news, current affairs, questions and of course our staple bad advice of the week!

You might know Ted Seides from his famous bet with Warren Buffett or, more recently, from his widely successful Capital Allocators Podcast. Ted is what we would call a classically impressive guy, having studied at both Ivy League frontrunners Yale and Harvard and having founded Protégé Partners, an asset management and advisory firm that specializes in hedge funds.

We are taking this episode to round up all the recent goings-on and tackle a few residual issues that we believe need some attention. We start off by contemplating how much we have both been learning with the wealth of guests that come through our doors.

You may not realize it, but if you’re a Common Sense Investing fan, you probably already invest in real estate. For example, the iShares Core S&P/TSX Capped Composite Index ETF (XIC) includes a 3.44% allocation to real estate. The iShares Core S&P U.S. Total Market Index ETF (ITOT) has a 3.89% allocation, and the iShares Core MSCI EAFE IMI Index (XEF) has 5.06%.

Benjamin and Cameron are talking real estate, specifically mortgage rates and REITs. For the first time since the early 90s, fixed mortgage rates are lower than variable ones, which have always been the popular choice. However, due to the fact that Canada’s yield curve is inverted,  short term rates higher than their long-term counterparts.

Let’s talk about the S&P 500 Index, one of the oldest and most familiar stock indexes in the world. According to the S&P Dow Jones Indices website, the S&P 500 tracks 500 U.S. stocks that cover roughly 80% of available U.S. market capitalization.

As the founder and CIO of Ritholtz Wealth Management, host of the Masters in Business Podcast and regular financial blogger for more than 15 years, Barry Ritholtz is someone we have been dying to speak to on the show and who we have taken loads of inspiration from over the years.

In investing and in life, we know we can’t always control the outcomes that occur from the decisions we make. Bad things can happen to the wisest among us. Likewise, even a fool can get lucky.