Q&A from AAII presentation, May 20, 2017


As promised to the more than 125 attendees of this Puget Sound chapter presentation, Paul answers the following 20 questions. Since many investors have the same or similar concerns, this podcast should be of interest and use to a broad range of investors, from first-time to well into retirement. 

1.  If many people invest in small caps, isn’t there a risk of creating a bubble?
2.  How do you apply market timing in your investing strategy?
3.  I’m confused.  You appear to suggest young people should take less risk than older investors.  Wouldn’t you agree young people could take the risk of aggressive actively managed funds?
4.  What do you foresee regarding robo vs. traditional advisors?  Will there be a merger of services?
5.  What is your exit strategy with your own portfolio?
6.  What has changed in your recommendations in the last 10-15 years?
7.  Why didn’t you include international REITs in your Ultimate Buy and Hold strategy?
8.  Do you think investors should include REITs in a taxable account?
9.  Why do you recommend an advisor if I have assets in a Buy and Hold portfolio?
10. I have $2 million in IRAs I am considering converting to a Roth IRA.  Good idea?
11. What investments do you recommend for 20-to-30 year old investors?
12. Now that European elections are done, is it a good time to invest in their equity funds?
13.  Where do you see this market going in the next four year, given the long bull market and the current administration?
14.  How do equal weighted S&P 500 funds compare to cap weighted funds?  What kind of performance do you expect from each group?
15.  Most retirement accounts include 40% to 60% in bonds.  With the likely increase of interest rates do you recommend investors continue owning bonds?
16.  Is there a 2017 update to the Ultimate Buy and Hold Portfolio?
17.  I am 78 years old. I expect to pass half of my investments to my 45-50 year old children. What investment time horizon should I use?
18.  What investment time horizon should I use for international small cap value?
19   Will the stock market tank in the next few months under President Trump?
20,  How do I invest to protect against a crash?