Investing in the Trump era; Hotel-bnb?; Paying your taxes with a credit car; and $70 underwear?

Image source: Kate Brady

  • The Oracle of Boston Speaks – No, not Tom Brady… Seth A. Klarman, who runs Baupost Group, which manages some $30 billion, often compared to Warren Buffett, offers his opinions on investing during the President Trump era. (NY Times)

I am a proponent of index investing for most investors. Klarman suggest that:

“When money flows into an index fund or index-related ETF, the manager generally buys into the securities in an index in proportion to their current market capitalization (often to the capitalization of only their public float, which interestingly adds a layer of distortion, disfavoring companies with large insider, strategic, or state ownership)…” “…Thus today’s high-multiple companies are likely to also be tomorrow’s, regardless of merit, with less capital in the hands of active managers to potentially correct any mispricings.”

I can’t disagree with this thinking, but most investors lack the time, skills, and the inclination to closely monitor their investments. Besides, you can’t time the market, right?

  • Is Your Portfolio Really Diversified? – Most investors know the merits of diversification – owning different stocks and bonds so that when some go down others go up. By spreading your money among a number of mutual funds, you can spread your eggs among many baskets. (US News)
  • Hotel-bnb? – Marriott will soon introduce communal hotel rooms at its Element brand that could hold between six and 16 guests. Visitors will have their own bedrooms and bathrooms, but will share a kitchen, dining room and lounge area. Some think it’s the chain’s answer to Airbnb, but Marriott said they are perfect for groups traveling together.(Seeking Alpha)
  • Bucket Checkup – Asset allocators have a choice. One of the best aspects of a “bucket approach” to retirement-portfolio allocation is that retirees aren’t strictly beholden to the income streams their portfolios kick off. (Morningstar)
  • How to Pay Taxes with a Credit Card (and Profit) – I run everything I can through my cash-back credit cards, but I pay my bills off — in their entirety — every single month. So my suggestion here is, while this is a good idea, make sure you have the cash available when the bill comes around. (20 Something Financial)
  • Hospital Tells Family To Not Worry About $31,000 Medical Bill; Sends Bill Anyway – With so many people being slammed with surprise medical bills following a medical emergency, it must be nice when your hospital and insurance company both tell you that your huge bill will be taken care of. Then all that goodwill goes out the window when you still end up with thousands of dollars in medical expenses. (Consumerist)
  • Disruptive Briefs… and boxers – You’ve probably seen the commercials, a growing number of companies are selling high-priced men’s underwear selling… as much as $70 a pair! … and guys are buying it. (Bloomberg)
  • Taking a Hard Look at Your Future Self – The decisions that you make today will have an enormous impact on what happens tomorrow. (The Simple Dollar)
  • Getting to 20% –  If you want to own your own home, you need to save up for the down payment. This is only one of the five steps — albiet, probably the most important step — to owning your own front door. (Humble Dollar)
  • Got Weed?Disclaimer… I believe that most people are better off investing in index funds than anything else. That said, if you are someone who researches and understands the risks of investing in highly speculative companies… It’s now possible to buy and sell pot on the Toronto Stock Exchange, or make that “WEED.” Canopy Growth (OTCPK:TWMJF), Canada’s first marijuana unicorn, has switched to the new four-letter stock ticker. Marijuana stocks in Canada are burning up as shareholders bet on the legalization of recreational use and the growing acceptance of the country’s burgeoning medical-marijuana industry. (Seeking Alpha)
  • The Best Cities for a Relaxing Retirement – Several of these cities are in California and are expensive to live in. If you have the money, they are worthwhile options. (SmartAsset)

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