System Trader Show Jack Lempart

When we are talking about a strategy in investing, it is often perceived as a mechanism for generating a buy signal. In fact, this is not the most critical aspect in the entire investment process.

Today I am pleased to invite you to an interview I had with Tom Basso - a practitioner with almost 50 years of market experience. He is a well-known person in the industry, especially if someone is interested in trend-following strategies.

In the background of our discussion is Tom's latest book, The All-Weather Trader.

In addition to discussing the strategies used by Tom, we talk about passive investing. Tom is not a fan of this approach, so I ask why.

John "Jack" Bogle revolutionized the investment industry by opening the first index fund in 1976 to replicate the S&P 500 index. It was not easy to sell the idea of a fund generating average market results. But Bogle has shown that by lowering costs he can outperform actively managed funds.

Eric Balchunas, author of the fantastic book titled "The Bogle Effect. How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors Trillions" is my podcast guest today. It's a semi-documentary book with numerous interviews by Eric, including Jack Bogle and even Warren Buffett. The book described the genesis of a great revolution in the financial world - the passive revolution.

Paul Merriman, my today's guest, is a worldwide recognized authority on index investing, asset allocation, buy-and-hold, and active management strategies. Paul began his career in the 1960s, working briefly as a broker for a major Wall Street firm. He concluded that Wall Street was burdened with too many conflicts of interest and decided to help small companies raise venture capital. He retired in 1982 to create his independent investment management firm.

Now retired from his company, he is dedicated to educating investors. In 2013 he created The Merriman Financial Education Foundation, dedicated to providing comprehensive financial education to investors, with information and tools to make informed decisions in their own best interest and successfully implement their retirement savings program.

Over the years, Paul has written many articles and books on investing. Paul's weekly podcast, "Sound Investing" was named the best money podcast by Money magazine.

Please visit systemtrader.show/024, where 24 is the number of this episode. There you will find additional materials in the form of links.

In addition, I invite you to the website systemtrader.show/shop because only now, until the end of November, you can buy my System Trader software at a very attractive price. You can use it to build your ETF or stocks portfolio, backtest it for up to 100 years, and follow it! Evidence-based, not story-based decisions.

Recently, I got an email encouraging me to sign up for a webinar to learn how to earn 1-4% per day. Imagine! Of course, there was an expensive car in the background. 🤦‍♂️

A "modest" 1% (instead of 4%) a day out of the starting $10,000 after three years grows to $17 million! And someone wants to teach such a great strategy for money instead of using it themself? If you believe in such methods, then there is no point in listening to this episode any further.

If you are looking for quick and easy money on the market, do not expect miracles because you will likely be disappointed.

My mission is to show how to invest using reliable and proven methods. There is no magic here.

A healthy home budget and regular wise investing of surpluses is almost a guarantee of financial success LONG TERM. It won't be three years, it won't be so sexy, but it will be REAL.

You can then retire earlier than most of the population. What's more: you gain financial freedom.

I invite you to this episode which comes from the LIVE session during which I presented an introduction to ETF investing.

Even if you are a complete beginner, everything will be easier after this material.

There are arguments in favor of traditional passive index funds: they offer low fees, liquidity, and broad diversification. They match market performance, have negligible trading costs and tracking error, and they beat most active managers most of the time.

On the other side, there are also factor strategies gaining popularity for a reason: they are transparent, offer exposure to widely agreed-upon sources of expected return, have low management costs, and, with proper design, reasonable transaction costs.

In this episode, I am honored to speak to Vitali Kalesnika, a recognized expert in factor investing. He's a partner and Director of Research at Research Affiliates. Vitali explains the details related to factor investing. You will learn, among other things, what it is, what the associated risks are, and how to properly use them in practice.

For more please visit: https://systemtrader.show/021

Today's guest is Grzegorz Link, who professionally works as a quant for an investment fund. Grzegorz is a physicist by education, which may surprise some. However, the thing is that in building market models, skills such as programming and mathematics are the primary tools, which is the same for contemporary physicists.

We raise many interesting issues during the conversation, trying to answer the question - how is it possible that a well-known investment strategy can still be profitable. You will learn about common investment myths, pitfalls, and difficulties awaiting investors.

For more please visit: https://systemtrader.show/021