I finally joined the Yakezie Challenge! For those who regularly follow my blog you are probably wondering what too me so long? For those do don’t know much about it the purpose of the “The Yakezie” is it’s dedicated to promoting high quality personal finance content on the Internet.
My Business and Financial Freedom Journey
About
The web site includes topics related to investing and entrepreneurship. While the blog might discuss investing and stocks, I’m referring to a much broader term. I consider investing as money you set aside so you have more at the end. This includes alternative investments not often discussed in the financial media. Read More »
Favorite Blogs & Links
- Best Life Insurance
- Budgets Are $exy
- Calculated Risk
- Darwin's Money
- Dividend Stocks
- Dividend Tree
- Financial Samurai
- Free Money Finance
- John Stossel
- Money Ning
- My Journey to Millions
- Oblivious Investor
- Smart Passive Income
- Social Lending Network
- Steadfast Finances
- Stock Broker Review
- The Big Picture
- The Wealth Report (WSJ)
- Zero Hedge
Good to have you buddy
Welcome aboard!
Welcome to the challenge. I've improved my Alexa ranking by 1.5 million since I joined! Thanks for letting me browse your site.
About time!
Welcome to the crew.
Your advice here is good. But I'm surprised you took the bait to a one year challenge with the markets. My sense is that you're an investor, not a speculator. I like Sam's articles a lot, but his challenge to you was silly. A one year (even a 5 year) performance against the market means nothing.
I do have one comment about your above post. Have you ever checked emerging market returns compared to first world developed market returns, since 1985? (that's the earliest date of substantial developing market record-keeping). Overall, developed markets have won, hands down, over the long haul. There's a fallacy that emerging markets outperform, but anyone who has gone beyond the lip service and done the research, blows that theory to bits (ie. David Swenson, who runs Yale University's endowment funds) Beyond the corruption in emerging markets (where so much of what's yours is taken, and so much that's claimed, in terms of GDP can be BS–ie China) the premise behind developed markets outperforming, racing, growing new ones is a long term fallacy, as an aggregate.
Hey Andrrew,
Thanks for stopping by.
I did it appease Sam. I stated I normally don't try to predict the markets (at least in public). But why not?
Regarding emerging markets, how do you know it's different this time? I agree overall, but shouldn't you at least have skin in the emerging market game? Markets like China, India and Brazil have a chance to become major players no? Wasn't Japan once an emerging market? For me, I've slightly increased (I believe 5%) my emerging market portfolio and reduced domestic stock portfolio.
True, Japan was an emerging market. And you should have skin in the EM game. I agree. But it's interesting looking at past results. The U.S. was the biggest emerging market of all time, but after reinvested dividends, its returns are on par with Britain's over the past 100 years. It's hard to believe, but true. What I am curious about is why so many people believe that fast growing markets will start (or have historically provided) great returns for investors, when they haven't. Compare Germany with Japan. Germany crushes them–as does France, Canada, Australia. I think what happens is akin to what Jeremy Siegal referred to in his book, The Future for Investors. We pay higher multiples for stocks in fast growing economies, and the reinvestment of high dividends don't offer the power that they do in developed markets.
I spend a lot of time in the developing world (I live in Singapore) and for many reasons, I've decided not to invest money in countries where I can't drink the water. That said, there's nothing wrong with skin in the game. As for appeasing Sam, it will lead to something entertaining, but from what I have read on your blog, it's not your style to predict short term moves—and good on you for that. It sends people into speculative modes.
Welcome aboard.
Welcome aboard.
I personally only have a small amount of skin in the EM game at 3.2% with a target allocation of 5%.