Sound Investing

Small cap value, timing and more Q&A


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The following are the Paul’s responses to questions and comments from listeners.


1.  How do active mutual fund managers invest their own money?  Article referenced in podcast:
https://ritholtz.com/2023/01/how-do-active-managers-invest-their-own-money/

2.  Why not use market timing to protect investments from declining markets?

3.  How should I put money into an account when facing important news like the possibility of a government shutdown over the debt ceiling?

4.  Investor has tried unsuccessfully to manage their own money in the past but is tired of paying 1% fee to managers.  What do they need to know or do to take control of the process successfully?

5.  Investor wants to know where he can read  the Wharton/Vanguard study regarding investor returns of target date fund investors vs. non target date fund investors.  Paul discusses the Howard Gold Marketwatch article:  https://www.marketwatch.com/story/millions-of-americans-it-turns-out-are-making-the-right-investing-moves-according-to-studies-11607458791

6.  What’s wrong with speculating with part of a portfolio.

7.  My wife and I have had a hard time saving.  What steps should we take to be sure we are able to save for the future?

8.  What one fund should I invest my childs first IRA?  Paul mentions table B14A to help make the determination.  https://paulmerriman.com/wp-content/uploads/2022/04/SCV-vs-SP500-Fine-Tuning-Table-2022-v0.2.pdf   This table is the most viewed of all Foundation tables over the last year.

9.  Financial advisor claims that the superior long term results from small cap value is due to a very few years of great performance.  The listener wants Pauls response.

10. Parent wants to know how much of child’s IRA should go into S&P 500 and small cap value fund.  Paul once again refers to B14A.

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Sound InvestingBy Paul Merriman

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