Do Valuations Still Matter?

Summary

Ben Carlson and Duncan Hill answer viewer questions about diversification, the CAPE ratio, behavioral finance, paying 1% fees, and bond ladders. They discuss whether valuations can be used to time the market, how much diversification is necessary, and the mechanics of bond ladder ETFs. The show is educational and does not present explicit trade recommendations.

• Diversification: S&P 500 plus developed ex-US covers ~75% of global market, may be sufficient.
• CAPE ratio: Has been above average 95% of time since 1990; not useful for market timing.
• Behavioral finance: Addressing financial anxiety with $5M net worth; need to shift from scarcity mindset.
• Fees: Questioner paying 1% for actively managed account; value unclear without planning services.
• Bond ladders: Target maturity ETFs (iShares iBonds) offer more predictable maturity than BND.
• Difference between bond ladder and perpetual bond fund: ladder reduces duration risk but still has reinvestment risk.
• Hosts do not provide any current buy/sell recommendations.