Here’s the first batch of answers from the Ask Me Anything. We covered a lot of ground in here including my view on factor investing, the FIRE movement, asset allocation in retirement, how bonds work and Fed policy.
I hope you enjoy this and if you do please like and subscribe to the YouTube channel and we’ll do more videos in the future. If you have another question feel free to leave it here and we’ll answer it in Part 2.
00:00 Introduction
00:05 What has caused stocks/bonds to become correlated?
02:14 Could we experience negative rates this year?
03:45 Would you take the job as Fed Chief?
05:02 Can you recommend books to learn macro?
07:45 Can you explain constant maturity bond funds?
09:55 What is bond duration?
12:23 Will the next 40 years of stock performance look like the last 40 years?
14:36 How do you think about pension, annuities and Social Security in asset allocation?
17:15 How did you determine the probabilities in your 2023 outlook?
18:50 What is the meaning of life?
21:25 Have children kept you from posting your outside work?
22:16 What could make you look past the economic weakness?
23:44 Why does the Fed focus on rear view mirror indicators?
25:03 Do I need small caps stocks to perform well?
27:55 What are your thoughts on the FIRE movement?
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
Rachelle
Part 1 was great- really appreciate your insights over the years! Curious what you think of TIPS, maybe more interesting now with a positive real yield?
Also have a question about international allocation. Your Discipline Index is split evenly between US stocks and international developed market (plus a bit of developing markets). I think the general advice is usually 10-20% international for US investors? Or maybe that’s just home country bias? I’ve also heard older investors planning to start spending down their portfolio soon should decrease international allocation to minimize currency risk (https://obliviousinvestor.com/international-allocation-maximum-and-minimum/). Pretty confused now & any thoughts you have would be helpful