Yeah, but the portfolio manager means the market is misallocating capital because they’re not buying the stocks she wants them to buy.
Right, that’s why I only agree with the headline… From there she and I disagree completely, cause I think it’s clowns like her that are responsible for the gross misallocation.
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Presumably an EV car battery issue—same thing that felled the Chevy Bolt. Could be a massive problem.
No biggie, internal combustion engines will be very reliable for as long as we need them… Which I figure is right up until the water rises over all of our heads!
You need to be using risk-adjusted returns. By your logic, if a hedge fund had access to guaranteed 8% returns with zero risk they would have no interest because it is less than the historical returns of the market. In reality, they would do what bobman suggested - get levered up and shovel as much money as possible into it.
Sure but this isn’t a risk-free proposition, so that comparison doesn’t hold on this one. First of all, I have adjusted the EV based on risk when I discuss it here. Secondly, I don’t need to know the exactly risk, I need to be able to compare the relative risk versus cash or an index fund.
This is what portfolio manager call a “whoopsie”. I’m pretty sure they just return the investors’ money to them, no harm, no foul.
I was using a risk free investment as a way of demonstrating my point that return relative to risk is what people are after. And if you think you have found an investment that billions of dollars can be piled into that has returns (relative to risk) that are significantly better than the broader equity market, then you may be doing something wrong.
You actually can and should compare the returns of investments with dissimilar risks as well as investments with similar risks. Basic portfolio efficient frontier concepts teach you that for any particular investment that has a specific risk/return profile, before investing in it you should check for investments with either a greater return at the same level of risk OR a lower level of risk at the same return. If you can find any, then your investment is a bad investment.
i could watch this guy go broke on a loop. epitome of the tres commas character.
This is a pretty well stated bear case for housing. I don’t buy it but it’s probably the best argument for this take.
https://twitter.com/chrisbloomstran/status/1495525381448818691?s=21
What is helping home prices this time around imo, is the rent prices. In 2007, a two bedroom apt were charging 1,200 a month in the bay area that were sitting right next to a million dollar home. Now that 2 bedroom is 2,500 and the house is back up to a million.
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US property market is so interesting. I cannot imagine rental yields have ever been lower than they are now in Australia.
Idk man I signed my contract for my house is September and they’re selling my house for 100k more already in the same subdivision
But I bought a condo in the summer of 2008 with the easiest housing market ever so fuck what I know
I’m constantly filled with dread and fomo about the fact I’ve never owned a house.
I’ve got 8% of my dads place, but that’s just cos I gave him the money to help with a downpayment. Theres very little upside there.
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Seems like there was a boom of that for 5 years, then cities started banning or seriously restricting Airbnbs
If it makes you feel any better, I hate being a homeowner.
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+1
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About rents: the rent is too damn high.
https://twitter.com/zellieimani/status/1495630161806569473
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