The Often Ignored Truth About Bonds, Huawei Ban Really Explained, Q&A | Joseph Carlson Ep. 26

In this episode the story is told of going through the recession with three different portfolio allocations. One with the majority of bonds, one with a 60/40 stock bond mix. And one that is pure equities. These three different stories may explain why the average investor only made 1.9%/yr over the past 20 years. I talk about the Huawei ban and explore the ways this company has exploded to be the global leader in 5g technology. And I answer some questions and respond to some criticisms.

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DISCLAIMER:
Always do your own research when investing. The expressed opinions in this video are my own opinions and expressed purely for entertainment. I'm not a professional and this video should not be considered legal or financial advice.

[chessdad]

No music. No yelling. Just information. I like it.

[slugwaffles]

Best YouTuber out there in my opinion.

[XAcademy]

Thumbs up on the detailed analysis and breakdown of each and every topic. And the effort put into creating these videos 👍💯

[rhaegoti]

Hi Joseph - love your channel and strategy, they fit very nicely with the way I think. I had some questions that I hope you can help me with:
1- I've read several reviews of M1 Finance, and they all have mentioned the lack of Tax Loss Harvesting - even calling it a "deal breaker" for some investors. Could you go into a little more detail about what it is/does, how it affects your portfolio, and whether you know if M1 Finance plans to implement this in the future?
2- I see that when you focus on a particular ETF you can see their expense ratio. Does this get taken out of the dividends paid? How important is this to pay attention to when selecting our investments?
3- For Bond investing, you have 3 Treasury Bond Funds but no Municipal Bond Funds. I understand the tax advantages of each are different, but haven't crunched numbers to see which is "better." I imagine "better" would depend on which state a person lived in. Would adding/substituting Municipals make sense broadly, or would it be something that each individual investor needs to figure out for their particular situation?
Thanks for all your hard work, and sorry for the long post (feel free to edit/ignore any of it - you have a lot that you go through each video)

[kblmnop]

Joseph, you hit the nail on the head! Human nature is the beast of personal investing. You and I have the same thought process.

[billsojourn]

Joseph, really enjoy your investment videos. I wonder at your advanced understanding of the investment world. Were you mentored by a parent/family member? Could you discuss the evolution of how you came to be so wise for a 25-year-old? I think your subscribers would like to know.

[aWaywooEngXYZAdv]

I like this financial talk show. It is one of the greatest financial channel that I have followed so far. No background music, no overacting, no exaggerating explanation. It is pretty much all smooth out most of financial concepts and easy to understand with plenty of illustrations and samples. It enlightened me in a way. But, I like to point out something about the competition in technology world between companies. As what you mentioned about those foreign tech corporations, like Samsung, Japanese companies. First of all, I like to say that they are all American corporations in a way. For instance, like Samsung, you could dig it up a little bit more and you will find that it's already an American company now. During sub prime crisis, it was in trouble with financial management, then American capital took a series of actions on it and bought over 60% of this corporation's stocks with really low price. I think that it was a superb deal to American capital. Also, Japan is American best and trustworthy ally. We almost share everything with their government strategically, politically, technically and from the perspective of military force. All in all, we treat those foreign corporations as our own kind. It's a very complicated logic behind this event. You have to take some political factors into this kind issue seriously but there are not just the issues of technology copycat. From the perspective of technology development and competition, I think that it's our lost from our consumer end tho after we decided to block it from the western world.

[eduardomartins]

Dude, your portfolio is amazing, step by step growing. The value of its portfolio, in the currency of my country its represent 120 thousand, cheers from Brazil!!

[henrym.]

I am only commenting because I want YouTube algorithm to take more notice of the Joseph Carlson channel.

That said, I knew bonds are instrumental to a portfolio, but never did someone explain what it brings to a portfolio in an up or down market as meaningful and powerful as Mr. Joseph Carlson did in this video.

[SecurityisaMyth]

Thanks for making the vids, I have watched them all. Any chance you could discuss the way M1 platform works cost wise and an overview of the tax implications of this type of investing.

[Matt-gfgd]

Dude... I've been binging your channel... I think your channel is blowing up or is about to. People appreciate your down to earth, straight forward, low-nonsense content in a sector that's chalk-full of shilling and hyping. Keep it up bud!

[richardatkinson]

wow, what a great explanation of portfolio mix. I lived through those bad economic years, you are right on.

[theworldofsnarf]

Okay so I'm not going to lie. I have been subscribed since you started making videos. You were on the M1 subreddit and you're layout and formatting was beautiful. However, the length of your videos discouraged me and I was worried I would get lost. I never took time to sit down and let my teeth sink into your content. In less than a year you've grown so much and I finally had time tonight to sit down and watch a video and WOW!!! The content and commentary is so good!! I'm going to have to go back and watch a lot more. I'm sorry it took me so long to get behind this!

Your through process on bonds is great and makes me feel less bad about owning bonds in some form (Worthy Bonds, Worthy Peer Capital, and some vanguard ETFs. ).

Keep making this awesome content, I'm mesmerized 😁

[slovell]

Dude you make too much sense for some people. Keep doing what you are doing

[djfreeagent]

Joseph thanks again for a well detailed video. I like your take on P&G and Clorox. I have both stock on my watch list. I see other inventing YT channel talk about these stocks and I was curious to know why they weren't in your portfolio (Now I Know). A couple reason why I really love and enjoy your channel is the tranprency, detail breakdown and reasoning behide your decision on your portfolio (Noone else does this). Hats off to you brother. Thanks again.

[Saituros]

Great explanation on the reasoning for allocating to bonds. People often miss that risk tolerance should be based on your own financial situation. A person making $200k a year with no debt, good job security and a 6 month emergency fund can more afford the risk of full equity exposure knowing they don't necessary need the money in a worst case scenario, whereas another person with more potential for risk or volatility in their life (such as job loss, income reduction, debt, etc.) is not going to stomach full equity well. This is what makes investing hard, there is no "one trick" solution everyone can follow. A portfolio should be tailored to each person's financial situation, their investing goals, and their mental makeup.


Good info afterwards too with Huawei, and potential market implications. Appreciate the video!

[Solar]

FYI, on your view of private label brands, they aren't always a net hurt to the big boys like JNJ or CHD. In many (even most) cases, it's not a knock off company supplying Kirkland product, it's the same companies providing a "Private Label" product. If your brand is the only differentiation, then PL is really a threat, but if you have a differentiated product or defensible manufacturing (which CHD and JNJ do), then PL can actually just be a new market to expand into. Keep in mind, a greater threat to CHD or JNJ was the "Club" model cutting into traditional retail, and not the PL vs Branded transition. Playing nice with PL can mean huge topline growth, if you can eat the margin through scale or "value" product.


This isn't to say your concerns aren't fair, just only part of the story. The private label game is a really issue in the retail markets today. Not good or bad, but different depending on your position.

[krihanek]

Dropping all your money into the market on Oct 2007 is a worst case scenario. I was 45 years old in 2007, it was the worst drop in my life time, the S&P 500 took 5 years and 2 months to recover to it's Oct 2007 number. I continually added to my investments, by March 2010 I was still negative as a percentage return but my balance reached a new all time high. If you DCA and stick with the plan your returns will follow the efficient frontier. I was holding 5% bonds.

[Zukolo]

A couple points in the video I want to comment on.

1. You pretty much sold me on bonds. I will look into adding them to my portfolio.

2. I don't think people want you to invest in bitcoin but rather get the right information about it. The main thing that upsets people is saying bitcoin isn't a currency. Which it is, you can buy things with it.

P.S. Keep the videos coming. :)

[wanderingmusic]

Ayy welcome back man! Really really enjoying theses videos!