qplum
Our dream is to make investing a science ... not a competition, but a truly inclusive process. The way we can come together to achieve this is to make investment management more (1) Thorough (2) Efficient (3) Transparent. Means: A.I and Tech
US Investor Index
How do you compare against the average US investor?
slides.com/qplum/us-investor-index
Disclosures: qplum LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
What we will cover today
What we will not cover today
Stocks better than bonds?
Humans vs AI
Recommendations about specific stocks
Bitcoin!
Importance of the right benchmark
- Helps us compare (fairly)
- Helps us decide what to do
Incorrect benchmarks
Data Used in construction of US Investor Index
Sources:
Federal Reserve US Household balance sheet
BLS data on retirement allocations
Data:
- Balance sheet allocations to each sector
- Inflow / outflow in each sector
Example of data available
Asset allocation of US investors
In depth look into allocation changes
Questions so far?
Creation of qplum's US investor index
On every update to the balance sheet of US investors published by the Federal Reserve:
- Update the current allocation
- Compute the realized returns of the previous quarter
- Adjust the previous estimate of the period
Performance of qplum's US investor index
Investors panic at 5% drop in wealth
References
US investors better than "smart money"
Trading strategy based on US investor allocations
(Backtested) Gains of investing one dollar in each of these strategies
These backtested results are for illustrative purposes only. Backtested performance is not indicative of future results. The actual performance for investments in these strategies could be different.
Towards a science of investing
In future, we should be investing with a trustworthy tool and not experts.
The tool should look at every aspect of the data.
The tool should be affordable and efficient.
The tool should know what we have learned already."
- Benjamin Graham
Questions?
gchak@qplum.co
Disclosures: qplum LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
How do you match up against the average U.S. investor?
By qplum
How do you match up against the average U.S. investor?
The U.S. investor doesn't invest only in the S&P 500 Index. Contrary to what real estate agents might tell you, U.S. investors don't just load up on real estate either. In this presentation, we look at publicly available Federal Reserve and BLS data to gauge what investors actually invest in. We will make an index, that is the right benchmark for US investors.
