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Wealth Track Interview with Lubos Pastor
Old 05-28-2011, 09:52 AM   #1
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Wealth Track Interview with Lubos Pastor

Interesting interview.

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On this week’s Consuelo Mack WealthTrack, Consuelo talks to a financial thought leader who is challenging a bedrock principle of investing. Award-winning University of Chicago finance professor, Lubos Pastor explains why stocks are not necessarily best for the long run.
Consuelo Mack WealthTrack - Home - The Right Track To Your Financial Health


Lubos Pastor - Chicago Booth Faculty
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Old 05-28-2011, 10:50 AM   #2
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The speaker says had you invested in the German or Japanese stock markets prior to WW2 you would have been wiped out.
I thought currency was wiped out but stock in terms of the major index companies survived and recovered in like 20 years. Anyone know more about this specific issue?
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Old 05-28-2011, 12:21 PM   #3
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I like Wealth Track but it is no longer on my local PBS station. Anybody else have this problem?
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Old 05-28-2011, 01:07 PM   #4
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Originally Posted by Ready-4-ER-at-14 View Post
The speaker says had you invested in the German or Japanese stock markets prior to WW2 you would have been wiped out.
I thought currency was wiped out but stock in terms of the major index companies survived and recovered in like 20 years. Anyone know more about this specific issue?
Seems to me that the problems in that era had greater survivor issues than survival of a portfolio.
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Old 05-28-2011, 01:34 PM   #5
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Originally Posted by Ready-4-ER-at-14 View Post
The speaker says had you invested in the German or Japanese stock markets prior to WW2 you would have been wiped out.
I thought currency was wiped out but stock in terms of the major index companies survived and recovered in like 20 years. Anyone know more about this specific issue?
Either way, I really think portfolio diversification (including international and domestic diversification) is a good idea to lessen the risk of being wiped out. I didn't listen to the show but perhaps this was his point.

I even like the idea of multiple income streams (portfolio, pension, social security, yada yada yada) as a "belt and suspenders" approach as well.
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Old 05-28-2011, 02:41 PM   #6
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The speaker makes a lot of sense regarding the uncertainty of future returns, as well as his comment regarding one's job stability and investing risk levels. To say the future will be like the past may not be right. But, no one really knows what the future will be like. In response it is prudent to hold a well diversified portfolio.
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Old 05-28-2011, 02:54 PM   #7
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I like Wealth Track but it is no longer on my local PBS station. Anybody else have this problem?
Podcasts!

WealthTrack's Podcast - Download free podcast episodes by The Right Track to Your Financial Health on iTunes. (audio only)
WealthTrack Portable - Download free podcast episodes by Consuelo Mack on iTunes. (video podcast)

Also on-line via Flash for your computer, or MPEG-4 for streaming iPad aficionados.

See also Consuelo Mack WealthTrack - Watch and Listen
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Old 05-28-2011, 04:23 PM   #8
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Some of the industrial concerns survived.

But the countries were wiped out, devastated and took decades to recover.

His point was the US benefited from being the victor in WWI and WWII and has largely prospered for 200 years which has yielded a great opportunity for US companies to grow. That level of growth may not continue.

So... international diversification is needed.
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Old 05-28-2011, 04:58 PM   #9
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Thanks!
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