MOAR Than Dogs of the Dow II

Many global investors today feel stuck having to choose the least of three evils.

  1. The United States is a heavily burdened lifeboat without a clear bailing system.
  2. Europe is a cracking tectonic fault line.
  3. And the Shanghai composite index is threatened by China’s sluggish exports and weakening property market.

In short, things look pretty bleak. That’s just how Michael O’Higgins likes it.

The extended version of the feature article I wrote about Michael O’Higgins’ latest investment strategy is now available online at Canadian Business Magazine. 

Click here to read my article





Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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7 Responses

  1. Marco says:

    Hi Andrew,

    Thanks for sharing the article. An interesting read.

    One thing to consider is the benchmark for the MOAR portfolio. I believe that the S&P500 is not the correct benchmark to use. The MOAR portfolio is comprised of different asset types and should be compared against a blended benchmark. This is how total returns are typically reported for funds that are comprised of different asset classes such as pension plans. Something for your readers to consider if they want to properly account for value add.

    Marco

  2. Barry says:

    Hi Andrew

    Did it have you questioning refining your strategy, or re-enforce your beliefs with regards to your overall strategy?

    Barry

  3. Dew says:

    Hi Andrew,

    Thanks for the article.. i started investing recently using your index strategy. Should we be modifying our strategy base on MOAR?

  4. Jeff says:

    Hi Andrew

    I bought your book and bought into your system. As I have said previously I wish I had learned these lessons 30 years ago. Now I start my day at 6 am reading your blog, wouldn't miss it.

    I enjoyed this article but instead of factual description of Michael O'Higgins interesting strategy I'd like to ask you your opinion on it. Is it worth a second position?

    Thank you

    Jeff

    • Hi Jeff,

      I have maintained my basic strategy. I can't see the future, but I know that I should do very well with the strategy I have.

      Marco,

      You are right. But of course, a blended benchmark would have very likely underperformed the S&P 500 over the past 40 years. So I set the comparative benchmark high by not blending.

  5. Matthew says:

    It does look like a variation of the permanent portfolio set-up. Low correlation among asset classes is the key contributor to low volatility. Risk can be further reduced by using minimum variance approach. Thoughts?

    • You're right Matthew, but unlike many people, I don't correlate volatility with risk unless you're a retiree, or close to it. The more volatility my personal investment account experiences, the better. It allows me to benefit greatly when I dispassionately rebalance.

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