[02:04](https://www.bilibili.com/video/BV1iRJk6NEdd?t=124s) 第一大雷区资产：固定收益与各类债券（Fixed Income / Bonds）
进入正式盘点，排在首位且让主讲人最为反感的资产类别，就是固定收益与债券。主讲人毫不掩饰自己的厌恶，甚至将其形容为一种“有毒的资产”（toxic and poison）。在过去五到十年里，任何与债券挂钩的投资组合几乎都遭遇了毁灭性打击。
```mermaid
flowchart TD
accTitle: Fixed Income Spectrum Overview
accDescr: A breakdown of the analyzed fixed income ETFs spanning government durations, corporate risk tiers, and aggregate collections.
subgraph Gov["政府债券 (Government Bonds)"]
direction TB
TLT["长期国债 (TLT: 20+ 年)"]
IEF["中期国债 (IEF: 7-10 年)"]
SGOV["超短期国库券 (SGOV: 0-3 个月)"]
end
subgraph Corp["企业债券 (Corporate Bonds)"]
direction TB
LQD["投资级企业债 (LQD)"]
HYG["高收益垃圾债 (HYG)"]
end
subgraph Agg["综合债券 (Aggregate)"]
AGG["全市场综合债券 ETF (AGG)"]
end
```
> “Why would you lend your government money? To me, that's just crazy. They're the most irresponsible. Some of the most irresponsible. If the government was a publicly traded company, that stock would have went bankrupt a long time ago because they're always in a deficit every single year.” —— 浑水摸鱼清源
紧接着，主讲人揭露了第二个长期投资陷阱：以罗素 2000 指数（Vanguard Russell 2000 ETF: VTWO）为代表的中小盘股票，以及历史悠久的道琼斯工业平均指数（Dow 30）。很多投资者奉行教科书式的分散配置，认为投资 2000 只中小盘企业能带来更高的弹性与成长潜能，但真实回测彻底粉碎了这一神话。
主讲人毫不客气地批评了道琼斯工业指数的设计机制：它不仅仅只包含了 30 只老牌成分股（如苹果 Apple、联合健康 UnitedHealth Group 等），而且其编制规则采用极其过时的“股价加权”（price-weighted），而非现代主流的“市值加权”（market-cap weighted）。在主讲人看来，道指是衡量现代金融市场整体走向最愚蠢的指标之一。
```mermaid
flowchart LR
accTitle: 16-Year Total Return Hierarchy
accDescr: Ranking index total returns from best to worst over a sixteen-year historical period.
subgraph Winners["核心领跑者"]
direction LR
QQQ["纳斯达克 100 (NASDAQ 100)"] --- SPY["标普 500 (S&P 500)"]
end
subgraph Laggards["落后资产"]
direction LR
DIA["道琼斯 30 (Dow Jones 30)"] --> VTWO["罗素 2000 (VTWO / Russell 2000)"]
end
> “You see that the Russell is actually even underperforming the Dow 30, which is unbelievable, right? You see the giant gap in performance, it's absolutely incredible.” —— 浑水摸鱼清源
主讲人强烈抨击了市场上劝投资者“分散配置到罗素指数”的流行言论。他直言媒体和理财顾问经常吹捧板块轮动，鼓吹把资金分散至中小盘，但作为以5年、10年乃至“无穷远（infinity plus years）”为维度的终身长线投资者，这种操作在逻辑上完全站不住脚。他质问道：“Why would you diversify into a long-term loser?” 任何周期拉长来看，都没有任何理由把资金沉淀在长期输家身上。
回测图表呈现出刺眼的巨大鸿沟：尽管标普500和纳斯达克本身就囊括了这些防守板块中的优质企业，但大盘指数的总回报却彻底碾压了纯防守型ETF。主讲人指出，从广泛分散转向特定防守行业，实际上是增加了行业集中度风险；如果你要承担行业集中风险，标的就必须具备跑赢大盘的潜力，而防守板块在定义上就意味着低波动、低表现和低总回报。对于奉行“买入并永久持有”的终身投资者而言，真正的防守从来不是配置低回报资产，正如主讲人所总结的：“The best defense, I repeat, the best defense is the... Not having the need to sell ever.”
对于很多人声称“实体房产摸得着、看得见、能住进去，因而带来安全感”的说法，主讲人嗤之以鼻，坦言这种充满重资产持有成本、高昂折旧与微薄回报的标的不仅不让人安心，反而“吓得我魂飞魄散（This scares the hell out of me）”。他明确表态，除非自己未来坐拥一两千万美元身家买海滩度假屋自住，否则绝不会把实体房产作为投资工具；无论实体物业还是REITs，冰冷的历史数据已经证明其并不是长线资本增值的最优解。
```mermaid
flowchart TD
accTitle: 7-Year Total Return Performance Hierarchy
accDescr: Visual hierarchy showing S&P 500 VFV leading significantly over global and international ETFs.
主讲人提到，如果将时间跨度缩短到五年，结论完全一样。虽然将周期截取到短期的三年或一年时，会出现新兴市场（XEM）或加拿大市场（XIU）小幅超越标普500的反常现象，但主讲人对这种短期杂音嗤之以鼻。他强调自己是坚定的长线复利持有者，关心的永远是5年、10年、15年乃至20年的长期趋势，而在长周期维度下，核心优质资产对海外市场的压制是无可辩驳的。他直接挑明了底层逻辑：“Remember, you're not investing in the countries. You're investing in the businesses domiciled in those countries or in those stock markets right there's a big big big difference so personally i i would never invest in in in these.”
在主讲人日常开展的投资一对一咨询中，经常遇到客户洋洋得意地炫耀自己参与了私募贷款或充当民间借贷人，拿到了每年7%、8%、9%甚至10%的名义利息。主讲人对此泼了一盆冷水：首先，这种收益在属性上属于利息（Interest），在税务层面属于极不划算的普通收入课税项，税后损耗极大；其次，美国市场许多封闭式基金以高达7%至10%的高息做诱饵，底层资产却塞满了低质量的银行次级贷款、私贷烂账或蓝猫（Blue Owl）等机构运作的高风险资产。主讲人直言不讳地将这些底层标的统称为“垃圾固定收益”（Fixed income crap）。
[30:00](https://www.bilibili.com/video/BV1iRJk6NEdd?t=1800s) Fixed Income and Private Debt Alternatives vs. Covered Call Equities
Wrapping up the comparison of alternative fixed-income assets, private lending, and closed-end debt funds, the performance numbers reveal an unmistakable trend: while these high-yield funds outperform standard government and corporate bond benchmarks, they still lag dramatically behind the broader equity market. Investors looking for elevated income often turn to business development companies or fixed-income closed-end funds such as BIZD or RIV, but holding an equity-based covered call strategy produces far superior total returns over the long haul.
Even if an investor opts for derivative-enhanced equity instruments to generate monthly yield—such as Goldman Sachs' GPIX or NEOS's SPYI—they might slightly trail the pure capital appreciation of the unhedged S&P 500 index, yet they will consistently outperform pure credit and debt instruments over extended holding periods. Because equity-linked options harness the natural upward drift and superior profitability of core corporate earnings, they offer a far sturdier foundation than lending vehicles.
* **Underperformance of Credit Assets**: Debt instruments like BIZD and RIV trail the broader equity market significantly on a total-return basis.
* **Covered Call Alternatives**: Equity-based options strategies like GPIX and SPYI provide strong cash-flow yields while preserving corporate equity upside that outpaces private lending.
---
[30:34](https://www.bilibili.com/video/BV1iRJk6NEdd?t=1834s) Category 9: Cash Savings, Emergency Funds, and the "Cash is Trash" Trap
The final asset class on the restricted list is one many retail investors mistakenly treat as a safe harbor: cash savings accounts, high-interest savings ETFs, and broad liquidity holdings. The speaker dismisses the common retail strategy of hoarding dry powder to time market drawdowns, arguing that chronic government deficits accelerate currency debasement and render cash a guaranteed losing proposition in real terms. As the speaker bluntly declares, “Obviously, cash is trash.” He notes that while some investors insist on keeping 5% to 10% in cash to pounce on market dips, that timing approach conflicts with disciplined compounding: “I don't adhere to the whole, let me put 5-10% in cash, dry powder, wait for a crash.”
The concept of maintaining a traditional emergency fund also comes under scrutiny. While an emergency buffer can serve novices who struggle with budgeting, the speaker contends that it outlives its usefulness once a portfolio achieves critical mass. As the speaker points out, “Now, if you're just starting your finances and you're crappy at finances and you need an emergency fund, maybe. But I think once you pass a half a million dollar net worth, I don't see why you would need an emergency fund anymore.” For investors who still demand lower-volatility places to park liquidity short-term, the speaker references separate channel guides covering defensive, low-beta ETF alternatives that generate yield without suffering the severe purchasing-power decay inherent to uninvested cash.
```mermaid
flowchart TD
accTitle: The Opportunity Cost of Holding Cash
accDescr: Diagram illustrating how inflation and government deficits erode cash while equities generate compounding returns.
subgraph CashTrap["The Cash Drag"]
A["Uninvested Cash / Savings ETF"] -->|"Debased by Deficits"| B["Continuous Inflation Loss"]
B --> C["Purchasing Power Destruction"]
end
* **Inflation Drag**: Accelerating fiscal deficits guarantee that idle cash loses purchasing power day after day.
* **The Dry Powder Myth**: Keeping 5% to 10% in cash waiting for a crash consistently underperforms staying fully invested in the S&P 500.
* **Net Worth Threshold**: Accumulating over $500,000 in net worth eliminates the practical necessity of holding a dedicated liquid cash emergency fund.
---
[32:26](https://www.bilibili.com/video/BV1iRJk6NEdd?t=1946s) Analytical Tools, Channel Perks, and Community Resources
To close out the presentation, the speaker showcases his preferred research platform, Stock Analysis, which was utilized throughout the episode to calculate multi-year total returns. He points out a special promotion negotiated for his audience that provides one month free and 20% off an annual subscription to Stock Analysis Pro. Reaffirming his signature sign-off, he encourages viewers to share their pushbacks in the comments, stating, “Thanks very much for watching guys as usual stay safe stay passive stay honorable and see you next time.”
The remainder of the presentation outlines the community offerings accessible to viewers seeking deeper involvement in the Passive Income Investing ecosystem. Through the YouTube Inner Circle membership, subscribers gain early access to portfolio updates, monthly portfolio reveals of the speaker's parents and grandparents, exclusive Ask-Me-Anything (AMA) streams, and direct access to submit questions during executive interviews with fund managers. Beyond channel memberships, viewers can book one-on-one private coaching sessions, track live portfolio moves via the social investing app Blossom, download the portfolio tracking spreadsheet on passiveincomeinvesting.ca, or explore comprehensive digital guides, specifically the Ultimate DIY Investing Package and the Ultimate Covered Call ETF Guide.
* **Stock Analysis Pro**: Offers a 30-day trial and 20% discount on the first year for viewers analyzing total returns.
* **YouTube Inner Circle Membership**: Unlocks family portfolio transparency, AMA Q&A access, and direct questions for fund managers.
* **PII Inner Circle Plus Perk**: Provides a $75 discount on private one-hour coaching consultations.
* **Blossom Social App**: Real-time portfolio tracking and asset allocations accessible to the public.
* **Free & Digital Resources**: Free portfolio Excel spreadsheet downloads, broker discounts, and flagship guides covering DIY investing frameworks and covered call ETF strategies.
## Notable quotes
> [10:00](https://www.bilibili.com/video/BV1iRJk6NEdd?t=600s) Why would you diversify into a long-term loser? — 浑水摸鱼清源
> [11:12](https://www.bilibili.com/video/BV1iRJk6NEdd?t=672s) The best defense, I repeat, the best defense is the... Not having the need to sell ever. — 浑水摸鱼清源
> [05:00](https://www.bilibili.com/video/BV1iRJk6NEdd?t=300s) If the government was a publicly traded company, that stock would have went bankrupt a long time ago because they're always in a deficit every single year. — 浑水摸鱼清源
> [30:34](https://www.bilibili.com/video/BV1iRJk6NEdd?t=1834s) I don't adhere to the whole, let me put 5-10% in cash, dry powder, wait for a crash. — 浑水摸鱼清源
[10:00] 浑水摸鱼清源: Why would you diversify into a long-term loser?
[11:12] 浑水摸鱼清源: The best defense, I repeat, the best defense is the... Not having the need to sell ever.
[5:00] 浑水摸鱼清源: If the government was a publicly traded company, that stock would have went bankrupt a long time ago because they're always in a deficit every single year.
[30:34] 浑水摸鱼清源: I don't adhere to the whole, let me put 5-10% in cash, dry powder, wait for a crash.
Original transcript
[0:00] Disclaimer, this video is for educational and entertainment purposes only. It is not financial advice. We are not registered financial advisors. Hello everyone and welcome back to the channel, your number one source for income-oriented investing. And in today's video, I've been working on this for a while, I want to tell you nine things or nine assets well i don't think it's nine assets technically but let's just say nine things to keep it simple that i personally would never ever invest in i know never say never and i'm gonna say it anyway you never know but i really feel like i'm probably never gonna invest in these nine things ever so let me go through it and as usual like we always do on this channel show you the proof and I'm going to back up why I don't want to or I'm never going to invest in these things. But another little disclaimer here is that just because I don't like these things or assets or ETFs or whatever, it doesn't mean they're automatically bad investments and you shouldn't invest in them. Again, this is just my opinion, everyone. So just remember that. But here are the nine things that I would personally never, ever invest in. Let's go. Before we continue, I'd like to thank the sponsor of this video, TapAlpha. For decades, investors were told to choose between growth and income. TapAlpha thinks this is a false choice. TapAlpha ETFs are designed to seek both long-term growth and daily options income in one tax-efficient fund, with strategies covering the S&P 500, the NASDAQ 100, and even the Magnificent 10. And because markets evolve, TapAlpha is built to evolve with them, a disciplined process that learns and strengthens with each market cycle. Building the future of growth plus income investing. Explore the lineup at topalphafunds.com. So, the first thing, and this is probably the thing I hate the most, or I've developed my – okay, hatred is a strong word, but this dislike has only been accelerated over time. It's fixed income or bond. So, this is something that I would never, ever touch. To me, it's toxic. It's poison. the last 5-10 years has gotten destroyed. Anything to do with bonds, I can't stand. What are bonds? You're basically lending money. That's what you're doing. You're lending money either to the government, you're lending money either to your provincial government, the municipality, corporate. You're basically lending money and you're getting paid a fee or interest, if you will. So I've gone ahead and actually added some of the most popular bonds. ETFs related to bonds and fixed income. So of course, I'm going to focus on the US market, which is the biggest market. But this really has to do with, I'm sure the data will be very similar if you look at the aggregate bonds in Canada or the Canadian government bond, medium term, long term. So when it comes to bonds, there's really a couple of more important ones or So, What I've done is I've looked at some of the biggest top ETFs that have government bonds and corporate bonds. So I've chosen various degrees of duration for government bonds. So TLT is the longest or one of the longest. Really the bonds that have been in the news lately that's got the sense trying to buy back and prop up and blah, blah, blah, blah, blah, long-term bonds, right? So TLT is the ETF from BlackRock, from iShares. These are long-term bonds. Then you have IEF. IEF is medium-term bonds, so 7 to 10-year. We've been hearing a lot about the 10-year recently in the news. That's kind of like the cost. It's over 5% now. This is more shorter term, but it's medium term. Pretty much like a money market or close to a money market. So this is very, very much, much lower duration, almost zero duration, zero to three month duration. So it's almost as good, almost as considered safe as cash. Okay. And you'll typically get close to what the interest rate is. So I'm assuming S-Gov, you know, you could do the individual research yourself, but it's probably giving like 4% interest or something like that. Okay, so these are the three related to the government bonds. Now in terms of the corporate bonds, it's typically in two buckets, either high or
[5:00] Yield bonds, sometimes called junk bonds. So these are the more riskier ones or the more risky corporate bonds. So companies that are not as well established. So that would be the HYG. uh i shares etf i added lqd which is investment grade so higher quality corporate bonds so like jp morgan would be in there like higher uh you know safer blue chip companies when they borrow money or when you're lending them money that would be the lqd etf and i also added agg which is kind of like the when you hear the word aggregate it typically means a collection of different types of bonds so maybe there's some corporate maybe there's some government so i just want to give perform over time and you'll see that it's absolutely disgusting. And as a benchmark, I'm just going to put it versus the S&P 500. I'm not even doing the NASDAQ 100 because it will look even uglier. because the Nasdaq is outperforming the S&P 500 by quite a bit. But let's just put VOOP as a benchmark. And if we look at the total returns, everyone, this is total returns. You'll see the unbelievable... huge chasm of a gap in terms of performance. Right, so you actually see that the S&P 500 is obviously blowing everyone away. And just to give you the time frame, this is as of 2020. So you got about six years of data here, guys. So quite a bit of data. So, and I think the trend is only going to get worse and worse and worse. But either way, you see that the junk bonds or the high yield corporate bonds are actually doing in second place and you see the zero to three month. cash or money market type stuff, SGOV, is actually in is actually in third place and you see that the other ones are actually in a negative, especially TLT, long-term bond. So absolutely disgusting. If we just switch it to five-year, the story is the same or if not worse. If we switch it to three-year, you could play around with the timeframes, everyone. With stock analysis, you could take some ETFs out, you could add some, you could do whatever you want. But it's not even close a little bit. It's absolutely disgusting how bonds perform. So this is something that I would never, ever put my money in. Why would you lend? You know, corporate bonds, I could have a bit more sympathy, but either way, corporate bonds don't really perform that well either. Why would you lend your government money? To me, that's just crazy. They're the most irresponsible. Some of the most irresponsible. If the government was a publicly traded company, that stock would have went bankrupt a long time ago because they're always in a deficit every single year. And it's not just the U.S. government or the Canadian government. It's pretty much all governments. Maybe except Switzerland or something like that. But anyway. moving on what is the next thing i would never invest in the russell 2000 index you know what i'll even put the dow jones the dow 30 index in here so The Russell 2000, which I'm going to put the VTWO, Vanguard ETF, Russell 2000. So the Russell 2000 is really 2,000 smaller to mid-sized companies. So you know how you have the S&P 500, 500 biggest companies, NASDAQ, NASDAQ 100, even more concentrated than the S&P, only top 100 companies listed on the NASDAQ only. But VTW, that's the Russell 2000. So this is more smaller businesses in the US, but 2,000 of them. I also put the Dow Jones Industrial Average, which is an ancient, ancient index, which is only 30 companies, so 30 stocks. Apple is in there. UnitedHealth Group is in there. I'm sure Berkshire Hathaway is in there. So you've got 30 stocks worth it. I think it's like equal weight or it's based on the market price, whereas the S&P and NASDAQ and Russell is market cap weighted. So I think it's just one of the dumbest indexes or indicators of all time of how the actual stock market is moving, the Dow Jones. But it's more the Russell 2000, I would say, that I want to focus on more. But I added all four of these. Let's just see how the Russell does versus the S&P versus the NASDAQ versus the Dow Jones. ugly guys If we hit max, so we have about 16 years of data here. Lots and lots and lots of data. And you can see the total returns are absolutely horrendous here. Let me just go to... October because it's October 12th I'm filming this I want to go a day before I can't seem to reach it but let's just land on October 6 so 16 years approximately you see that the Nasdaq and the SMP you see that the Russell is actually even underperforming the Dow 30 which is unbelievable right you see the giant gap in performance it's absolutely incredible
[10:00] So this is just something I would never invest in. And you see that there's actually been a big dip with the Russell and even the Dow Jones. And this is, I guarantee you, it's because of the interest rate hike or interest rates going up because interest rates going up hurts smaller to medium-sized businesses a lot more than big businesses. so let me just switch it to 10 years now so we have 10 years of data you'll see that the gap is still wide the russell is still in last place if we switch it to five years it doesn't really get any better guys no matter what time frames I pick here. So maybe three years, the Russell's outperforming the DAO, but look at it versus the S&P and the QQQ. So, you know, sometimes you'll see it in the news and people switching to the Russell and whatever, whatever, diversifying to the Russell. I don't buy it. Why would you diversify into a long-term loser? I'm a long-term investor, 5, 10, infinity plus years, right? Every time frame I choose, I just can't see a reason why you would invest in it. So that's number two. Number three, this might be a little bit more controversial. And again, this is just me, everyone. I don't feel the need. Defensive sectors. So you hear this a lot, especially lately when there's rumbling that the stock market crashed. Defensive sectors typically refer to utilities, healthcare, and consumer staples, right? Walmart, Costco, that kind of thing. Utilities, obviously. It could be pipelines and it could also be stocks that are getting crushed right now, telecoms, right? I believe it's because of Starlink, because of SpaceX. But those are three typical defensive sectors in the market. Maybe gold could be considered that kind of, but I think for this exercise, I'm going to be focusing on. I'm trying to show some of the top ETFs. So XLV is one of the biggest, if not the biggest. These are all State Street. They're all spider ETFs here. You can see that they're massive. So XLV focuses on healthcare, XLP, consumer staples, and XLU utilities. Now, this is in the US and Canada. uh utilities stole or kind of suck but anyway i'm doing more in the us here and just as benchmarks again i'm going to add the s p 500 and the nasdaq The Nasdaq 100, and you could obviously see the giant gap between these. This is as of six years, right? So six years of data, you see how the defensive sectors, which, by the way, some of it is in the S&P and the Nasdaq. Obviously, some of those companies are in there, right? But you see how they heavily outperformed the index. So my rule of thumb is if I'm going to invest in a particular sector, if I'm going to, have concentrated exposure to something which in my opinion even if it's considered a defensive sector i think it's higher risk because you're going from diversify to sector specific it better be a sector that i really believe in that i think has even a chance of beating the s p 500 because to me when people say defensive i ought to know it automatically translates into a lower performance lower total return lower volatility yes but i've already solved that problem i don't need defensive sectors because i'm a buy and hold forever i personally believe this is very important guys The best defense, I repeat, the best defense is the... Not having the need to sell ever. So I probably could have rephrased that much, much better, but you guys know what I mean. If you never have to sell anything, why would you need a defensive sector in your portfolio? To me, it makes no sense. Long term, you'll just underperform. And to me, I'd rather go with an S&P 500. That's my... Kind of like my de facto bottom of the line. Even the S&P 500 is boring for me. I don't even have the S&P 500. I have like an HYLD, which is kind of concentrated S&P 500. Right. So for me, if you can't handle the volatility of the S&P 500 and you're looking or you're buying into this whole defensive crap. I would actually spend more time working on yourself and trying to understand... Why am I scared of, for example, the S&P 500? So to me, there's no point, absolutely no point. You're just going to underperform. The proof is in the pudding. And I think the longer you go, the more it'll be amplified, right? So there you go. Defensive sectors is number three. Number four is real estate. So real estate... I'm going to show you some data when it comes to REITs and real estate ETFs, which REITs
[15:00] It's our physical real estate. But just a quick word on... owning physical real estate, like buying condos and houses and renting them out and doing that whole real estate grind. Guys, I've done over 1,000 one-on-one coaching sessions. I know friends, my parents have done this. I know friends that still do it and are trying to get out of it. It's a complete and utter nightmare. Not only... I feel that an S&P 500 would give you higher returns than managing property and going through all that, which I'm going to show you. But it's not just about the actual total returns. If you just add up all the headaches. All the mental energy, all the drain, all the taxes and property taxes and real estate agents and notary fees and real estate agent fees and everything. Commission fees and property taxes and water taxes and school taxes and crappy tenants and broken this and broken that. And I've heard I've heard it all. I've heard the craziest things. Trust me. You would have just been so much better off with an S&P 500. I mean, it's not even close. Plus, no headaches. You buy your S&P 500 for almost nothing. It's like 0.03%. Finau And you would have had no headaches and much higher total return, much higher. Less stress or zero stress rather. I can't talk about how this is just something I would never buy. I would never buy real estate. Never say never. If I become a 10, 20 millionaire and I see a beach house that I really like, maybe I would buy it. in terms of an investment i would never buy physical real estate as an investment and even reits and uh on the stock market because if we look if we do and i chose i went on the canadian stock market here So, on the Canadian stock market, when it comes to REITs, it's the REs. So, you have ZRE, XRE, VRE, which is the Vanguard, iShares, and BMO REITs. So, they're all a little bit different. Some do equal weight, some do capped. Right, so BMO equal weight just means it's more equal weight between the REITs. Capped typically means, you know, the bigger REITs will have more of a share, but they kind of limit it. So, I don't know, Ryokan doesn't get 20% or something like that. But either way. I also added what I feel is the best REIT ETF or real estate manager in Canada that's middle field. right and their etf is mrel and so i just added these ones because they've been around for quite a while and then i added again vfv dsmp 500 just as a benchmark and we have quite a bit of data here While we're talking about like 14 years of data or something like that, look at the gap. It's a chasm. I mean, it's insane. Look at the returns of these REIT ETFs. And MRL's number one by the way, the middle field one is destroying ZRE, VRE, XRE. And by the way, as I'm filming this, we're still getting earthquake aftershocks here. It's unbelievable. It's unbelievable. But anyway, speaking of real estate, yeah, earthquakes and real estate, this even happened last time. I was talking about real estate and was getting aftershocks. It's absolutely unbelievable. um but anyway you could see that the performance gap is just disgusting let's switch it to 10 year let's do a couple of other time frames you do 10 years and you're you still have a massive gap. You see MRL is still in first place in terms of the reads. You do five years, I think it's even worse. If you do three years, it's still bad. If you do one year, it's still bad. So obviously, I think this is the latest downtrend is probably because of interest rates going up a little bit maybe. But you could just see that in terms of performance, So imagine going through all the headaches, all the stress, all the anxiety of doing that physical real estate crap. And the performance is not even as good as just a simple S&P 500, right? And if you say, well, I'm just going to buy a REITs instead because it's hands-off. But keep in mind that REITs, Why I think they underperform, yes, they own the physical real estate, but all those fees, it's a physical asset, guys. There's so much cost in it. When people say it gives me comfort because I could feel it and touch it or live in it. It just makes me laugh. I mean, this does not give me comfort at all, guys. This scares the hell out of me. But anyway, moving on. That's real estate, guys. And listen... I'm not saying real estate is a bad investment. I consider it... an investment You know, it's what most people do. It's what most people know and think is right. I'm just showing you... Data this this is data your
[20:00] As an investment It is an investment, but I think it sucks as an investment, something I would never invest in. So that's number four. Number five and six are kind of together. So this is also a lot of other, another thing that I hear a lot of nonsense about. Pure international stocks or pure emerging market stocks. So that would be five and six. Um... what do i mean by pure international stocks or pure emerging markets so international when you hear international stocks It typically means developed countries outside North America or outside the US. So think of Europe. So it's mostly the UK, France, which is burning right now, Switzerland, Germany. Japan is a big one there. Australia is there. So anything developed outside is typically referred as international. So the biggest index is the most popular ETF is the MSCI E-A-F-E, right? Europe. Australasia, Far East, basically Japan. So, developed economies, right? So, Taiwan and South Korea and China would be under emerging markets. Emerging markets, which MSCI also has the... The most popular index, I guess, would be things like China, Taiwan, South Korea, China, India, Brazil, Saudi Arabia. So that's emerging markets or newer markets that are emerging, I guess. And why I say pure is that maybe in some of my ETFs, it's possible like you have global ETFs that have a little bit of international that have like companies like Taiwan Semiconductor or BP. I'm not talking about those that have a little bit of maybe a little bit of international or a little bit of emerging markets. I'm talking about. pure international or a pure emerging market ETF. So what I've done is I just did, let's just see how the emerging markets won. the EAFE one does versus the TSX 60, the overall Canadian market. Let's see how it does versus the S&P 500. And let's see how it does versus XEQT, which is the whole world, which typically combines US, Canada emerging and EAFE. So if we do the total returns, we have about seven years of data here. You see that the trend is clear. VFV is still the king by far. There's a big performance gap. Not massive because this is stocks at least. But you see that emerging markets, which is XEM, XEM, and the international oh wait XEM yeah XEM is the emerging markets and EAFE is the XEF, they're pretty much in last places. And you see that even the overall Canada is beating them. XEQT, which is the whole world, is very, very close to Canada during this time frame, but it's in second place. But that's because it's mostly US that's carrying it. There's quite a bit of Canada in there. Canada's not so bad, actually. But you see VFE is just a king. So if we shorten the time frame... Five years, it's... Pretty much the exact same story. Now, you might find some small gaps and smaller timeframes where international emerging markets exist. and even Canada is beating the US. So I think if you go to three years, I couldn't even believe this. You see that if you choose a three-year time frame, XCM is actually slightly beating the S&P 500. If you go to one year, XCM... and XIU is beating the S&P 500. But of course You know, We're long-term investors. I don't really care about one year. I care about 5, 10, 15, 20. I care about the longer term. So the long-term trend is very, very, very, very clear. And again, this is just my opinion. I can't see a world where the economies in China and India and Brazil, the companies – remember, you're not investing in the countries. You're investing in the businesses. domiciled in those countries or in those stock markets right there's a big big big difference so personally i i would never invest in in in these Next one, I don't know what number we're at. I think we're at seven, is commodities or basic commodities. What do I mean by basic commodities? I'm talking about physical here, so gold bars and silver bars, things like that, but also ETFs that track the spot. price of the commodities. So like SLV for Silver, GLD for Gold. I might
[25:00] I like commodities but I prefer to invest in, and I put Bitcoin under this bracket, Ethereum. I much rather go with the businesses related to those commodities. So for gold and silver, it's easier, copper. Uranium. Natural gas. I'd rather go with the gold producers, silver producers, copper producers. This is why I love the CMCL, all-in-one commodity producer ETF. It focuses on the businesses, not the commodities. So that's what I mean by the spot or physical product. I do like commodities. I believe in gold and silver long term and uranium. I know we're going to need it. It's important. But I'd rather go with the businesses because it's almost like they're leveraged to it. So you have more performance long term. Plus, it's better for covered calls. I'm a covered call investor, right? And again, the proof is in the pudding. So if we take, for example, I added a bunch of ETFs here. So GLD is the biggest spot gold ETF in Canada. I think the most popular one is ZED GLD, which they just added a ZED, right? So it's just gold bullion. It's pretty big, $140 billion in GLD, $1.7 billion in the BMO. I also added ZGD, which is the Equal Weight Global Gold Index from BMO, just to show you how gold producers do better. I also added XGD, which is, I guess, a competitor. Obviously, they kind of had the same name. To ZGD then I added GLCC which we all know is gold producers with cover calls and then there's HGY Which is just spot gold with cover calls. So you'll see that If we look at the total return, and I don't have much data here because I think the... A couple of years of data, not much. But it's very clear that you see that the spot ones, anything to do with the spot price, heavily underperforms the companies or the gold producers. So you see ZGD, XGD, GLCC doing much, much better than just buying gold. spot gold which is kind of the same as just buying a brick of gold and keep it in your house it might be even worse doing that because you have the risk of people stealing it you have The risk of... the added cost of storing, protecting that gold, maybe in a vault, so there's even extra cost. To me, it's not something I would ever get. Maybe as a collector item, but as an investment, no. To me, it makes no sense. I'd rather go for the gold producer ETFs or silver producers ETF. And now with CMCL, where you have the gold, silver, copper, uranium, natural gas, lithium, and even some oil and gas producers, takes care of all that for me so um but if you're a gold buff or a silver buff i would go with the the gold producer etf or the silver producer etf they just have more volatility and more upside um and the proof again um The proof is in the pudding now the the second last one is Stuff that I had invested in it a lot of some of this stuff I had invested in it before like you know the real estate For example, you know, I had a lot of RS RS is just a real estate split share fund I forgot I guess I forgot to add that one But we'll shorten the data and you see that RS obviously if it's REITs with a lot of leverage and read suck It's just gonna do worse, right? But this other category has to do with the fixed income market. It's things like private lending, BDCs, private mortgages. I do a lot of coaching sessions where I hear people, they have private mortgages or they are the lender and they get like 7%, 8%, 9%, 10% interest. Keep in mind that it's interest, so it's very tax inefficient. But I'm putting all that stuff under this category here. So BDCs, closed-end funds, not split funds. Split funds, yes, are closed-end funds, but they invest in stocks. I'm talking about the closed-end funds like on the US. that invests in all kinds of fixed income crap, right? Whether it's bank loans or private mortgages or BDCs, you know, like the Blue Owl company, you know, the private – any of that, I don't know exactly how to describe it, but any of that crap, it's also something I would never invest in. So, for example – If we add things like BizD, which is the Vanec BDC income ETF, which is like just giving me all the BDCs. And I remember one of the better ones was Goff. the Guggenheim Strategic Opportunity Fund. There was even RIV, River North Opportunity, which focused a little bit on stocks, but still a lot of, very, very heavy on that fixed income crap. Again, if we do max, you see that they actually, BizD, RIV, and Goff are outperforming
[30:00] Government bonds and corporate bonds. You see they're doing better. But you see that it's still... underperforms very heavily the S&P 500. So again, I don't see a reason. I don't see why you would you know, S&P 500 with cover calls, like a GPIX or a SPY-I or whatever, and you're going to get, you're going to underperform the S&P, but you'll definitely beat BizD and RIV over time, right? Alright, last but not least, this is very obvious, but it's just not something I would ever invest in. Cash savings ETFs or cash savings account at the bank account or whatever it is. Obviously, cash is trash. We know that with inflation, cash loses value every single day and that's only accelerating as inflation accelerates because government deficits are accelerating. So, I don't adhere to the whole, let me put 5-10% in cash, dry powder, wait for a crash. I respect people who want to do that to try to time the market. That's fine. It's DIY investing, do it yourself investing for a reason. It's not something I would do. Obviously, this is obviously a no brainer if you look at the returns of cash versus an S&P 500. You'll see that it's pretty obvious, right? Cash doesn't return anything. In my opinion, cash loses value over time. So it's not just it's something I would never, never invest in or hold. Now, if you're just starting your finances and you're crappy at finances and you need an emergency fund, maybe. But I think once you pass a half a million dollar net worth, I don't see why you would need an emergency fund anymore. That's just my opinion. And by the way, if you're interested, if you have a lot of these cash ETFs or you... like them. I do have a video where to park cash, you know, some, um, alternative alternative ETFs that are lower risk than an S&P 500 for example but obviously higher risk than than cash but just some ideas if you want to park some money for a longer term or for a market crash if you're you know obviously it's going to be higher risk than cash itself but anyway I recommend you watch that video but I think cash is trash I would never invest in something like that so I That's the last thing I would never invest in. In case you didn't know, the Stock Analysis did a special deal for my viewers. If you're interested, because I use Stock Analysis for the whole video here, it's my favorite tool to do total return analysis. They're not sponsoring the video or anything, but you do get a month free and 20% off your first year if you sign up to Stock Analysis Pro. So I'll put that in the video description below. So there's the video guys. I hope this was useful for you again This is just my opinion what I would never invest in let me know your thoughts. Give me your comments You disagree with me that I miss anything Let me know and thanks very much for watching guys as usual stay safe stay passive stay honorable and see you next time A couple of reminders before you leave, please hit the like button and subscribe to the channel. I would really appreciate it. If you like and enjoy the content, did you know we have a YouTube Inner Circle membership program? Hit the little join button where the subscribe normally is and you'll get this window with the information. But essentially you get access to all kinds of exclusive content and perks, including a monthly unveil of my parents and grandparents portfolios. Early access to my portfolio unveils, answers to your questions during AMA, members only, ask me anything, the ability to submit questions to fund managers, etc, etc, etc. So hit the join button to find out what it's all about. I would really appreciate it. And don't forget that I get questions all the time, emails and texts, all kinds of personal questions. This is why I created the one-on-one coaching session. So you could book me for an hour where you could ask me whatever you want. dot CA to find out the information here you click on this link here for a quick guide you'll find out what it's all about and also how to get $75 off as a PII inner circle plus member the second level membership don't forget to follow us on blossom download blossom follow my portfolio live it's an invest social investing app you could follow our portfolio live and also if you go to the tools and resources tab right here on my website you could download my portfolio excel file for free and we have a bunch of discount links and discount codes for some portfolio tracking tools uh total return screeners and also canadian brokers as well so if you're interested There's also a bunch of other free useful links as well. So again, all this is on our website. Last but not least, we have two digital products that both come with free lifetime updates. You have the Ultimate DIY Investing Package and you have the Ultimate DIY.
[35:00] call ETF guide if you're interested in them I highly recommend you click on view details and watch this video which will describe both packages so you can see exactly what you're purchasing before you purchase it and thanks so much for watching everyone take care
