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Weekend reading: if you could take one asset class into the shower

What caught my eye this week.

Morning all. I’ve got to admit that after writing 5,788 words for this month’s member post for Moguls – trust me, I counted them – I’m out of puff for the week.

(While I do aim to go into depth with these reports, I agree that 5,788 words is not sustainable! Perhaps not even for busy members. Must cut harder…)

So before the links I’ll just point you to this chart that was highlighted to me by Monevator member Mark:

Source: Trustnet

The chart is taken from this year’s Credit Suisse Equity Yearbook. It was flagged up in the Trustnet article I’ve linked to by Martin Currie’s chief investment officer, who describes it as the most helpful guide to investing he’s come across in his career.

What does it tell us? Nothing more – but also nothing less – than that since 1900, equities have beaten bonds for returns in all economic environments except when lower growth coincides with lower inflation.

And even then, there’s only a whisker in it.

It’s simply a reminder that for all the good reasons we have for diversifying our portfolios, shares should be the engine. At least until you’re getting ready to start spending. Even then you should almost certainly keep a decent-sized wodge in them.

Not a revelation to many Monevator readers perhaps. But tell it to the millions with collectively £1.5 trillion sitting in cash savings accounts.

(Yes, having some cash is great. But cash won’t be a driver of wealth).

Eat up your house deposit

Oh, before I go here’s a menu entry shared by a Monevator reader holidaying in Amsterdam:

Very droll. If you’d like to pay homage to these personal finance ironists on your next visit, the restaurant is called Box Sociaal.

Have a great weekend!

From Monevator

How to create your own financial independence plan – Monevator

And now for something completely different – Monevator [Mogul members]

From the archive-ator: Keep it simple, stupid – Monevator

News

Note: Some links are Google search results – in PC/desktop view click through to read the article. Try privacy/incognito mode to avoid cookies. Consider subscribing to sites you visit a lot.

Nationwide: UK house prices falling at fastest rate since 2009 – Guardian

UK economy surpassed pre-Covid size in late 2021, new data shows – Reuters

Aberdeen named the most affordable city to own a home – This Is Money

Octopus Energy gains two million new customers in Shell deal – Sky

Bank of Mum and Dad contributes to 47% of under-55 home purchases – This is Money

A well-off retirement now requires a pension pot of £600,000 – This Is Money

Court hands Grayscale Bitcoin trust victory against SEC… – The Block

…The SEC failed to prove that dog wags tail, court rules [Search result]FT

FWIW, the market is saying the low-rate era is over [Search result]FT

Products and services

NS&I launches one-year saving bond paying 6.2% – NS&I

HSBC to offer 40-year mortgage term to cut bills – This Is Money

Open a SIPP with Interactive Investor and claim £100 to £3,000 in cashback. Terms apply – Interactive Investor

Would an annuity work for you? [Search result]FT

London’s ULEZ expansion: facts and fiction – Be Clever With Your Cash

Open an account with low-cost platform InvestEngine via our link and get £25 when you invest at least £100 (T&Cs apply. Capital at risk) – InvestEngine

A reminder of how the “Hi mum!” WhatsApp scam works – This Is Money

Cheapest destinations for a last-minute holiday this September – Which

Are you a victim of ‘dogflation’? – This Is Money

English homes for sale within walking distance of school, in pictures – Guardian

Comment and opinion

Frugal vs cheap – White Coat Investor

Should we move the 2% inflation goalposts? – David Smith

Win big, lose big: range of outcomes thinking – Mr Stingy

Mind the behaviour gap – The Big Picture

Boomers: the luckiest generation – A Wealth of Common Sense

Why we glorify overwork and refuse to rest – Harvard Business Review

S&P 500 calculator, with dividends [Tool]Of Dollars and Data

Don’t have a cow – Humble Dollar

Scared to death of running out of money in retirement – Wall Street Journal [h/t A.R.]

The reality of retirement beyond the numbers [Podcast] – Best Interest via Apple

Naughty corner: Active antics

15 ideas, frameworks, and lessons from 15 years – Flirting with Models

Optimising position sizing for better returns – Flyover Stocks

Neglected aspects of investing – Investment Talk

Lessons from David Herro’s holding on to Credit Suisse – Morningstar

Is illiquidity a feature or a bug? – Savant Wealth

Warren Buffett’s canvas – Rational Walk

Sizing up startup rocket ships – Axios

Kindle book bargains

Freakonomics by Steven D. Levitt – £1.99 on Kindle

Creativity Inc. by Ed Catmull – £0.99 on Kindle

Way of the Wolf by Jordan Belfort – £0.99 on Kindle

No Rules Rules: Netflix and the Culture of Reinvention by Reed Hastings – £1.99 on Kindle

Environmental factors

The behavioural shift in how we think about climate change – Vox

UK must label showers and toilets to cut water usage, experts say – Guardian

RSPB boss apologises after charity calls ministers ‘liars’ over sewage issue – BBC

Burning Man’s climate protestors have a point – Vox

Iceland to allow whaling to resume – Guardian

A new bio-leaf solar power design improves efficiency – Imperial College

Robot overlord roundup

Money is pouring into A.I., skeptics call it a ‘grift shift’ – Institutional Investor

Generative AI and intellectual property – Benedict Evans

ChatGPT versus a real financial advisor: who wins? – Fortune

‘Blue zone’ mini-special

Why ‘blue zones’ may hold the key to a longer, healthier life – ABC News

10 healthy home tips from the world’s longest-lived people – Mbglifestyle

Live to 100 Netflix doc names Singapore world’s sixth blue zone – Green Queen

Costa Rica’s longevity blue zone predicted to fade in 20 years – Next Avenue

Off our beat

I, exponential – Not Boring

Covid infection risk rises the longer you are exposed, study confirms – Nature

Why isn’t Ukraine a superpower? – Uncharted Territories

Workers are quietly quitting, and only employers can stop it – BBC

Chuck Palahniuk is not who you think he is – Esquire

Results – Indeedably

“She’s totally lost it”: a year on from the ‘Trusterfuck’ – Guardian

How Google made the world go viral – The Verge

1930s slang terms – Mental Floss

And finally…

“Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t.”
– Ramit Sethi, I Will Teach You To Be Rich

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The post Weekend reading: if you could take one asset class into the shower appeared first on Monevator.

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