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Monday, 4 May 2020

Podcast Episode 4: Managing Exposure (introducing the Kelly Criterion and capital growth theory)

Podcast Episode 4

Tune in to Episode 4 of our podcast series here, where we discuss managing exposure, and introduce some basic ideas related to the Kelly Criterion and capital growth theory. 

There are two important parts to allocation: firstly at the macro level, and secondly at the micro level. 

Stephen discusses a little further how the CAPE ratio can be your edge as an investor, and why you can increase your allocation when the odds are clearly stacked in your favour, while looking to decrease your exposure when the odds are poor or heavily stacked against you. 

In this episode we discuss in practical terms how to look at and approach a market cycle, and how you can outperform by managing your exposure using a systematic and unemotional approach. 

Why don't people invest more when markets are cheaper?

We discuss this groupthink and more in the episode below. 

Tune in here or click on the image below:

If you prefer you can tune in to listen at Soundcloud, Spotify, or Stitcher.

You can download a free chapter from our new book here.