Wednesday Reading List

As explained in I Have a Blog, but Why Should You Care? the Wednesday Reading Lists are getting a revamp. There will be a short summary of each article’s takeaways in the post so in two minutes you can get caught up on the week’s best and click through for more detail as wanted.

Wall Street is again making predictions for next year, but don’t pay too much attention by CNBC

At year-end we get strategist forecasts for the year ahead. But according to Bob Pisani you shouldn’t pay too much attention to the predictions. “None of this soothsaying amounts to much. Wall Street strategists collectively have a terrible track record.”

Two main reasons:

“First, forecasters are riddled with biases that limit the quality of their predictions…Second, the future is so complicated that it is largely unknowable. Events occur that are unpredictable and they affect outcomes.”

The issues they raise in their outlooks can be helpful to understand what’s going on, but don’t make investment decisions based on them.

Why Do A Roth Conversion? by Heritage Financial

There are seven good planning reasons to consider converting Traditional IRA dollars to Roth IRA dollars. Converting at a lower tax rate today than what you’ll face in the future. Getting more money in the tax-free bucket. Smaller taxable Required Minimum Distributions in the future, which may also save you on Medicare premiums. More future plan flexibility. Lowering the future taxable distributions for your survivor and heirs.

Weekly Research Briefing: Questionably Priced Berries by Hamilton Lane

Indexing your investments has myriad supporters and is sensible, but it can be taken too far. Not all asset classes should be indexed. Take U.S. small cap stocks. There are many companies losing money in sectors like health care and technology that you’re forced to own as a passive investor, leading to a portfolio where active management should have the opportunity to add value by being more selective.

ESG funds see record liquidations in 2023 by CitiWire

ESG funds are closing shop, fewer ones are being started, and assets are leaving the space for two reasons: short-term underperformance and the politicization of ESG.

Don’t Rule Out Tax-Loss Selling as 2023 Winds Down by Morningstar

In a strong year for stocks, there still may be some opportunities in your portfolio to tax-loss sell. Look at bond funds, individual stocks that haven’t performed well, funds heavily exposed to Chinese stocks, and sector funds and see if you have the opportunity to harvest some losses in your taxable accounts and either replace them with similar securities for 31 days or use this as an opportunity for broader portfolio clean-up.

A lot of things are getting cheaper. Here’s why you probably haven’t noticed. by Business Insider

Durable goods (long-lasting items like cars and appliances) are getting cheaper giving economists hope that we could get to the Fed’s 2% inflation target by the middle of next year. But the things Americans buy more frequently like groceries, clothes, and other non-durable goods aren’t getting cheaper and that’s why consumers may not have noticed easing inflation.

The Best Password Managers to Secure Your Digital Life by Wired

You need a good password manager to protect yourself online. Browser-based ones are okay, but limited and there’s nothing wrong with Apple’s macOS password manager if you only use Apple products. This article shares 9 optimal alternatives based on your situation.

Four timeless principles for investing success by Vanguard

Create clear and appropriate investment goals to understand how much you need to save and when. Keep a balanced and diversified mix of investments so you can get exposure to the long-term growth potential of stocks without being too whipsawed by short-term volatility. Minimize costs. Maintain perspective and long-term discipline so you don’t make a bad timing decision and hurt your returns.

Charlie Munger Reads

The investing legend passed away last week, but Munger was so much more than a great investor. He was a lifelong learner who tried to share what he learned. Here are three great posts to get you started. The first reviews the book that contains a lot of his writing, the second is a eulogy of sorts by Jason Zweig, and the third is a collection of his best sayings and writings.

Book Review: Poor Charlie’s Almanack by CFA Institute

Charlie Munger’s Life Was About Way More Than Money by The Wall Street Journal

Who is Charlie Munger? Wit and Wisdom From The World’s Most Irreverent Billionaire by Farnam Street