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And welcome everyone to another 
Smart Money Circle show. 

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I'm Adam Sarhan. 
With me today is Yang Tang, 

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who's the CEO and Co founder of 
Arch Indices. 

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They just launched a new ETF. 
Ticker symbol is VWI and their 

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website is VW ietf.com. 
Yang, thank you so much for 

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taking the time, and welcome to 
the Smart Money Circle. 

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Adam, thank you so much for 
having me. 

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It's a pleasure to be here. 
So yeah, I always like to begin.

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Can you tell us your story and 
how you got to where you are 

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today, please? 
Sure. 

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So my investing journey actually
started, you know, middle school

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This was, I grew up in San Jose,
CA and during the middle of 

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the.com and I was fascinated by 
markets. 

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Both of my parents actually 
worked in the semiconductor 

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industry. 
So every day I was hearing that 

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from my parents, you know, the 
cool things going on, 

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technology. 
So I actually bought my first 

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dock in 1999. 
One was a middle school and you 

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can imagine at that time, you 
know, it was a pretty tedious 

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process. 
You actually had to call a 

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broker and they charge you 
something like 4999, a trade 

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one, you know, that taught me a 
lot because one of these stocks 

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did extremely well, the other 
stock unfortunately did very 

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poorly despite both management 
teams executing very well. 

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So that gave me a very early 
lesson on in the power of 

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expectations versus investor 
reality. 

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OK. 
After I graduated from college, 

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I started actually in sell side 
research. 

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I was an analyst for about 18 
months and I moved over into 

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commodity sales. 
And over time, yeah. 

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And over time my, my philosophy 
has changed quite a bit. 

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You know, I started off as very 
much a Warren Buffett. 

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We got, you know, fundamentally 
analyzed the company and over 

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time I became much more of a, we
have to have a framework, we 

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have to be able to 
quantitatively justify what we 

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do, right. 
There are so many stocks in this

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planet for us to justify buying 
one versus another, you have to 

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be an analytical framework and 
that really builds kind of the 

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decision making process and the 
portfolio process. 

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So I'm actually a relatively new
interest of being a professional

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money manager. 
I went to Columbia Business 

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School and after Business School
I spent about 10 years doing 

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something called macro 
solutions. 

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And I really worked with large 
banks, insurance, NASA managers 

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on structured derivative and 
structured financing 

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transactions. 
So when you think about, you 

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know, kind of how a bank or an 
insurer or an asset manager 

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manages A portfolio, you know, 
returns are actually, you know, 

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one very small part of the 
equation. 

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You know, as an example, like an
insurance company, you know, 

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that's on behalf of the policy 
holders. 

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So they have to think about how 
their liabilities and assets 

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match. 
They think about the most 

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efficient way to #1 deploy their
capital. 

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You know, to support the 
business and the policy holders,

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#2, you have to make sure that 
if something bad happens in the 

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market, it's unexpected. 
You know, the, the policy makers

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are not left holding the bag 
when the insurance company goes 

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under. 
And we took up. 

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So we started the company 
actually as a almost a 

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brainchild during COVID. 
We had actually a lot of people 

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come to us during COVID and they
were like, hey man, should I do 

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this with my money? 
And you're like, we haven't 

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talked in about 15 years. 
I don't really know what's going

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on in your life, but the short 
answer is no, please don't do 

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that with your money. 
So ours was really kind of our 

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grandchild and how we will 
manage our own money. 

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And the way we think about it 
is, you know, if we were to 

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build a portfolio, we want to 
build the optimal portfolio to 

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get us to where we want to go, 
which is the goal, right. 

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And we want to deal with the 
least amount of volatility, 

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right? 
So they so you have a great 

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story. 
So you started in the 90s, you 

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saw you got hooked instantly. 
Middle school, which I love, I 

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was training the 90s as well. 
And you realize there's lots of 

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different inefficiencies, 
there's lots of different ways 

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that the market things could 
unfold. 

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You realize it's almost price is
a function of perception or 

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expectation versus reality. 
And there's more to it than just

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having a good new fundamentals 
or good story or whatever the 

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case is. 
And then you were intrigued, so 

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you instantly fell in love. 
I love that you went to school, 

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finished school and then you 
decided to continue your journey

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in the financial world. 
You worked in sales, worked on a

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few other things, worked in 
banks, weren't some. 

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You went deep into some 
derivative stuff and some next 

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level stuff. 
And then you decided to open up 

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a money management firm and 
congratulations by the way, and 

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take your face and you created 
analytical framework to help you

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make better decisions than just 
throwing darts on the wall type 

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of a thing. 
Is that correct? 

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Yeah. 
That's 100% correct. 

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It's, you know, it's very 
interesting because when you 

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think about even an index, 
right, an index is a derivative 

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at the end of the day, you know 
how we built a derivative inside

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a bank versus how a, you know, 
large index company builds an 

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index. 
Today is actually very night and

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day. 
And you know, the index 

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companies actually started us. 
You may know this in your 

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illicers may know this, but it's
actually started as a newspaper 

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business. 
There was a number on the front 

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of the newspaper to sell more 
newspapers. 

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And you know, the the old school
way of active management was so 

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poor people would rather take an
arbitrary number on a newspaper 

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than a quote UN quote 
sophisticated money manager with

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a large team of research. 
And I think it's really 

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important to think about that 
because investors vote with 

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their dollars. 
You know, there's no being right

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or wrong. 
There's just Either investors 

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vote with you or they vote away.
Oh, I love that. 

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That's fantastic. 
So perfect. 

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It's next great segue to my next
question. 

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Please tell us about your 
investment strategy and anything

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you want to share in that world.
Yeah. 

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So we are what we consider a 
systematic strategy. 

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So we kind of think breakdown 
the world a little bit, right. 

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There's kind of really two main 
segments. 

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There's the low cost index, you 
know, product which is market 

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exposure and just fundamentally 
that's very flawed because 

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market cap or equal weight 
shouldn't be the determination 

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of how you build a portfolio, 
right? 

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You know, up to probably I guess
the last 10 years being a big 

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company was actually a bad one. 
So people got around that, they 

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go, well, I don't want just the 
biggest companies, I want all 

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the companies. 
But if you think about it, it's 

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actually a little bit crazy. 
Why should a company that you 

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know is very small, maybe 
doesn't have any profitability, 

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has really more volatility, get 
the same amount of weight in 

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your portfolio as say at 
Microsoft. 

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So that's going to be the 
problem of low cost beta. 

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If they don't understand 
probably how to weight a 

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portfolio and you go through 
phases where it works, it 

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doesn't work. 
The other end is you know, very 

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expensive active managers. 
And if then again to be fair, 

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you know active management is a 
lot of flavors. 

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There's plenty of, you know, 
active managers that are under 

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fees, but the vast majority do 
not and they don't because 

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number one, you know, they have 
no way of discerning the proper 

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research process in this day and
age. 

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There's so much public 
information. 

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It's not like in 1970 where 
somebody faxed the SEC, their 

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annual report and you waited 
outside and then you had 

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somebody like sort of the report
right away reaching the numbers 

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over the telephone. 
And next thing you know, you're 

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on the floor of the exchange and
you can buy quick, right. 

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The information in public 
securities is largely down to a 

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very negligible number. 
So a lot of the active managers 

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struggle with, you know, what 
are they like. 

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And that's actually more of a 
reflection of their personal 

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bias and their investment bias 
rather than a analytically 

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proper framework. 
So what we want to be is we want

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to be committed, we want a 
systematic rules based strategy 

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and this really helps you two 
things. 

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Number one is it's fully 
transparent and #2 is it reduces

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as much human decision making as
possible to reduce as many 

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errors from human judgment, 
right. 

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When people think about passive,
it's not low cost market cap 

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product, it's a systematic way 
allocating assets to prevent 

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errors from human judgment. 
That's what we do, a low cost 

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product at best step. 
I love that. 

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So are you using price as a 
primary factor to make those 

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decisions or is it fundamentals?
Or how do you come up with the 

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criteria for the system, so to 
speak? 

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Yeah. 
So we've developed a process 

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which we call various optimized 
index. 

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So you can think of this as a 
modern portfolio theory 

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framework, but correcting for a 
lot of the flaws, right? 

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When, you know, when people 
think about Harry Markowitz, the

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man is a genius, but the man is 
also an academic and the MPT 

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only works in the classroom. 
For example, modern portfolio 

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theory assumes that you can 
predict expected returns and 

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expected volatility, right. 
If you and I could do that, we 

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wouldn't be talking today. 
We would probably be driving 

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around in a very fancy car on a 
private island. 

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So you have to think about that.
So but the analytical framework 

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is correct, right. 
What you want is you want some 

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kind of factor of assets. 
So what is it? 

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A quantitatively about 
securities that makes them 

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attractive, right. 
There's a number of factors we 

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can go into it a little bit 
later. 

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So we want, the factor that we 
want or #2 is we want low 

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volatility, right? 
Low volatility means there's not

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much investor debate on what's 
going on. 

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So if you think about how people
go wrong with positions, they 

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should become very volatile 
first before they either implode

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or they do very well, right? 
Most times they implode, 

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sometimes they do very well. 
And the third is you want to 

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look for a portfolio that 
doesn't always move together to 

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correlation. 
So what we do is we look for our

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ETF is income. 
So what we target is current 

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income. 
We have dividend stocks and we 

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have bond ETFs. 
So we look for stocks at a high 

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yield, low volatility. 
So we call that the ratio, the 

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performance ratio. 
And then we look for a bunch of 

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assets that have high 
performance ratio individually, 

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but they're not moving together 
at any given moment. 

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So they're de correlated over 
time, you know and then that's 

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how you build a portfolio to 
reduce volatility. 

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So we have two angles who always
want to give the investor the 

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exposure, in this case income 
and then we want to give them 

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the least volatile portfolio to 
do that. 

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OK. 
I love that. 

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So that's a really good point. 
Now let's talk about risk 

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management. 
How do you handle risk and what 

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are some mistakes do you see 
people make with respect to risk

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management please? 
I think the biggest problem of 

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risk is kind of size positions. 
And you know what we do is we 

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have a, you know, a weighting 
engine. 

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It's not a traditional matrix 
optimizer that you see from the 

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competitors and that's what the 
modern portfolio theory is based

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on. 
We've actually built a 

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completely proprietary system 
based on a tree model. 

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So that's .1 is how do you think
about weighting, how do you 

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think about methodology? 
It's a pretty complex 

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mathematical process, you know, 
anyone who wants to learn more 

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can always reach out. 
We have life papers and more 

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information to provide and #2 
it, you know, how do you protect

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as many scenarios as possible. 
So when you think about what 

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goes wrong, what we do, we take 
into account correlation, how 

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assets move together over a long
period of time. 

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Assets have been shown to either
be positively correlated or 

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negatively correlated or 
uncorrelated at all, right. 

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The uncorrelated assets I think 
generally don't exist or they 

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only exist for a period of time.
So what really goes wrong for 

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investors is if correlation 
either massively goes up right? 

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But the market goes down. 
So that's a liquidity event. 

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Also a market crash. 
For example yesterday is a great

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example. 
Stocks went down, bonds went 

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down, inflation came in hot 
right? 

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The S&P dropped 2%. 
The 30 year bond dropped 1 1/2%.

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So that's a pretty bad day if 
you're expecting bonds and 

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stocks to be negatively 
correlated. 

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Luckily, there's two ways to 
think about them. 

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Number one is you can buy what 
we call a tail hedge, which is 

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an insurance policy. 
It's usually an out of the money

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caller, but that's, you know, 
they lose money on these things 

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over time, but they happen to 
pay off on that day. 

238
00:11:12,000 --> 00:11:13,800
Like a fixed calls an exam, 
right? 

239
00:11:14,560 --> 00:11:17,400
You know, buy, you know, calls 
on the US dollars, another exam 

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00:11:18,960 --> 00:11:22,160
or #2 is, you know, you're 
trying to basically build a 

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portfolio where you know those 
days are going to happen, but 

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you have enough staying power 
over time when you make money 

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over time or those days are 
unpleasant, but you know it's OK

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because it's one out of 100 days
and you're not trading in and 

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out of this all day. 
Understood. 

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00:11:36,640 --> 00:11:39,640
So that makes perfect sense. 
Now, as far as stops, do you use

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stops at all or do you use it 
based on your expected return 

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versus what's actually 
happening? 

249
00:11:47,040 --> 00:11:49,400
Or how do you know when you're 
wrong and your thesis is busted 

250
00:11:49,400 --> 00:11:53,040
and you want to get out? 
So at any given moment, there's 

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00:11:53,040 --> 00:11:57,200
your optimal portfolio. 
So our ethnic RETF rebalances 

252
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every quarter. 
So we, we just rebalanced 

253
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beginning actually February 8th 
about a week ago. 

254
00:12:02,280 --> 00:12:05,400
So the portfolio changed ever so
slightly before, let's say with 

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00:12:05,400 --> 00:12:11,680
81% dividend stocks, 19% bonds, 
now it's 21% bonds, 79% stocks. 

256
00:12:11,920 --> 00:12:15,320
So every single day you drift a 
little bit away, a little bit 

257
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away, a little bit away from the
optimal portfolio. 

258
00:12:18,480 --> 00:12:20,720
The majority of the time it 
doesn't make sense for investors

259
00:12:20,720 --> 00:12:23,240
to rebalance because of the 
transaction cost. 

260
00:12:24,240 --> 00:12:26,480
So there are some days where 
yeah, you're going to, you're 

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00:12:26,480 --> 00:12:27,880
going to need to rebalance 
faster. 

262
00:12:28,120 --> 00:12:30,920
But we do a quarterly on a 
systematic basis because the 

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other problem is, you know, you 
don't want yourself to be 

264
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reactionary to the market, 
right. 

265
00:12:36,200 --> 00:12:38,760
If you know like you're down X 
percent today, you know it's 

266
00:12:38,760 --> 00:12:41,160
going to come back tomorrow, 
it's going to negatively de 

267
00:12:41,160 --> 00:12:43,840
correlate the market, what's the
point of rebalancing at the 

268
00:12:43,840 --> 00:12:45,520
bottom? 
So you're also trying to prevent

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00:12:45,520 --> 00:12:48,760
the, you know, the feedback loop
of spinning your portfolio out 

270
00:12:48,760 --> 00:12:50,760
of control. 
So for that reason, we don't use

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00:12:50,760 --> 00:12:52,440
stops. 
We just do the optimization 

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00:12:52,440 --> 00:12:55,560
every quarter. 
Some years, you know, it's a 

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00:12:55,560 --> 00:12:57,880
very little change. 
Some years it's a more, you 

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00:12:57,880 --> 00:13:00,000
know, rapid change. 
It really, you know, rebalances 

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00:13:00,000 --> 00:13:02,760
itself to the optimal market 
condition. 

276
00:13:03,400 --> 00:13:05,480
Understood. 
So your stop, I guess your risk 

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00:13:05,480 --> 00:13:08,080
would be just sizing the 
position from the get go and 

278
00:13:08,080 --> 00:13:10,720
then also making sure that 
they're not correlated assets, 

279
00:13:11,040 --> 00:13:14,680
so you're not too heavily 
involved in one specific area 

280
00:13:14,680 --> 00:13:17,040
that could. 
Crush the portfolio, right, 

281
00:13:17,200 --> 00:13:20,400
Yeah, about constructing the 
portfolio and then you know we 

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00:13:20,400 --> 00:13:23,720
back tested this about five 
years before we launched. 

283
00:13:24,040 --> 00:13:27,000
So we covered from 2018 to 23, 
which is a great number of 

284
00:13:27,000 --> 00:13:29,640
scenarios, right. 
We covered the first Fed height,

285
00:13:30,480 --> 00:13:34,040
we covered COVID, we covered the
Fed post COVID and then we 

286
00:13:34,040 --> 00:13:36,960
covered the biggest rate hike in
about 40 something years. 

287
00:13:37,280 --> 00:13:41,080
So I will point out is from the 
index perspective, you know the 

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00:13:41,080 --> 00:13:45,000
index had so it's because it's 
you know somewhere between 7080%

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00:13:45,000 --> 00:13:48,720
dividend stocks over the five 
year period we had the same 

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00:13:48,720 --> 00:13:52,920
total return as the high 
dividend index which is 100, the

291
00:13:52,920 --> 00:13:57,080
high dividend stocks. 
But we only realized 71% of the 

292
00:13:57,080 --> 00:13:59,440
volatility. 
So it got you to the same path 

293
00:13:59,480 --> 00:14:03,160
over a period of time, but again
you got less volatility during 

294
00:14:03,160 --> 00:14:04,600
that period. 
Yeah, it makes sense. 

295
00:14:04,600 --> 00:14:06,840
OK, let's thank you for that. 
Let's shift the conversation a 

296
00:14:06,840 --> 00:14:08,440
little bit. 
Talk about some timeless lessons

297
00:14:08,440 --> 00:14:10,080
that you've learned along the 
way that you like to share with 

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00:14:10,080 --> 00:14:11,720
the audience. 
Yeah. 

299
00:14:11,720 --> 00:14:15,160
So I think the biggest lesson is
you have to have a friend, 

300
00:14:15,400 --> 00:14:17,320
right. 
I think many times investors go 

301
00:14:17,320 --> 00:14:20,080
in and, you know, they hear 
something, you know, a great 

302
00:14:20,080 --> 00:14:23,000
idea or a great pitch. 
And, you know, even, you know, 

303
00:14:23,000 --> 00:14:24,480
the professionals have this 
problem. 

304
00:14:24,480 --> 00:14:26,600
Like, you know, one of my 
friends, you know, telling me 

305
00:14:26,600 --> 00:14:28,480
about a real estate fund he's 
looking at. 

306
00:14:28,600 --> 00:14:31,120
And I think myself like, wow, 
this is an interesting way to 

307
00:14:31,120 --> 00:14:32,400
plant the commercial real 
estate. 

308
00:14:32,800 --> 00:14:35,160
And then then I have to stop 
myself and go, this is great, 

309
00:14:35,480 --> 00:14:38,480
but #1, how does this fit into 
My Portfolio and what I want to 

310
00:14:38,480 --> 00:14:40,680
do? 
So the key is this, having the 

311
00:14:40,680 --> 00:14:44,560
framework for what you want and 
making sure that you're playing 

312
00:14:44,560 --> 00:14:47,160
your game and your game is 
important, right. 

313
00:14:47,160 --> 00:14:49,600
We don't want to be chasing. 
You know, the analogy is you're 

314
00:14:49,600 --> 00:14:52,240
never going to catch the bus if 
you go to a different bus stop 

315
00:14:52,320 --> 00:14:54,880
every two minutes, right. 
You have to stay with the bus 

316
00:14:54,880 --> 00:14:58,520
stop, you have to stay with the 
path and of course if your path 

317
00:14:58,520 --> 00:15:00,760
changes then it makes sense to 
readjust. 

318
00:15:01,080 --> 00:15:04,680
So I would say that is the first
piece and the second piece is 

319
00:15:04,960 --> 00:15:07,520
you have to think about risk 
adjusted returns. 

320
00:15:07,840 --> 00:15:11,440
You know and I think a lot of 
people they wake up and they go 

321
00:15:11,440 --> 00:15:16,480
oh I'm up 10% but so and so is 
up 15% like I should be doing 

322
00:15:16,480 --> 00:15:19,400
that instead. 
Well no, that's not the case, 

323
00:15:19,400 --> 00:15:21,400
right. 
That guy being up 15% may have 

324
00:15:21,400 --> 00:15:24,640
had two X of volatility. 
So my risk adjusted perspective 

325
00:15:24,840 --> 00:15:27,760
you may have been better off you
know and it's like going to the 

326
00:15:27,760 --> 00:15:30,280
casino, right. 
You know if you flip coins you 

327
00:15:30,280 --> 00:15:32,640
know over time and you keep 
betting tails where you keep 

328
00:15:32,640 --> 00:15:35,600
betting heads, well you're going
to break even you know. 

329
00:15:35,840 --> 00:15:38,240
So you want to make sure the 
game that you play, it's 

330
00:15:38,240 --> 00:15:39,720
thinking about the risk in the 
path. 

331
00:15:40,760 --> 00:15:43,240
Interesting. 
So what about some timeless 

332
00:15:43,240 --> 00:15:44,600
mistakes and how do you avoid 
them? 

333
00:15:45,560 --> 00:15:48,960
I think the biggest mistake of 
any investor is themselves right

334
00:15:48,960 --> 00:15:52,800
is it's controlling your your 
fear on a down day. 

335
00:15:53,040 --> 00:15:57,600
It's controlling your euphoria 
on an update and not making any 

336
00:15:57,600 --> 00:16:00,000
rash decisions, right. 
A lot of these investment 

337
00:16:00,000 --> 00:16:02,560
mistakes come from just pure 
rash decisions. 

338
00:16:02,880 --> 00:16:08,280
You know, it's for example, I 
think it was Julia Robertson, 

339
00:16:08,280 --> 00:16:11,680
right, was shorting Internet 
stocks, going into the.com boom.

340
00:16:12,000 --> 00:16:14,120
And then he was right. 
Of course, a lot of those things

341
00:16:14,120 --> 00:16:16,520
collapse, but he gave up at the 
peak, obviously. 

342
00:16:16,520 --> 00:16:18,760
I think it was different, you 
know, he was older, different 

343
00:16:18,760 --> 00:16:22,160
part of life, so forth. 
You know, it was more moving on 

344
00:16:22,160 --> 00:16:23,880
from life. 
But when you think about that, 

345
00:16:23,880 --> 00:16:27,560
right, he was right the whole 
time, you know, But from a 

346
00:16:27,600 --> 00:16:30,560
emotional perspective or from a 
life perspective, he stopped. 

347
00:16:31,000 --> 00:16:34,880
So if you just stick with the 
path, you don't let the euphor 

348
00:16:34,880 --> 00:16:37,000
young good days make you overly 
happy. 

349
00:16:37,680 --> 00:16:39,680
You know, try to have less 
drinks on that day, right? 

350
00:16:39,960 --> 00:16:43,320
But you know, don't let the, you
know the down days really get to

351
00:16:43,320 --> 00:16:45,440
you where you don't have to 
reevaluate everything, right? 

352
00:16:45,880 --> 00:16:49,160
Maybe have more drinks that day.
I hear you, you know, just 

353
00:16:49,160 --> 00:16:51,600
balance it out and then have the
plan that you want to have. 

354
00:16:52,480 --> 00:16:56,600
So what you're saying here is 
just I like we said earlier, 

355
00:16:56,600 --> 00:16:59,880
about being, not being 
reactionary and mistakes you see

356
00:16:59,880 --> 00:17:02,920
people make are getting too 
euphoric or too depressed on 

357
00:17:02,920 --> 00:17:04,720
updates or down days. 
So make sure you check your 

358
00:17:04,720 --> 00:17:07,960
emotions. 
What about some advice? 

359
00:17:07,960 --> 00:17:09,800
What's some timeless advice 
you'd like to share with the 

360
00:17:09,800 --> 00:17:12,599
audience about the markets or 
off markets? 

361
00:17:12,599 --> 00:17:14,640
Anywhere you want to go with 
that or give your, you know, 

362
00:17:14,640 --> 00:17:17,720
younger self. 
I think I would tell my younger 

363
00:17:17,720 --> 00:17:22,200
self is, you know, you have to 
be very careful doing research 

364
00:17:22,200 --> 00:17:25,839
and listening to people, right? 
Everyone has some kind of angle 

365
00:17:26,240 --> 00:17:27,760
and some kind of way they think,
right? 

366
00:17:27,960 --> 00:17:32,120
So number one, you know, even in
this 20-30 minute conversation, 

367
00:17:33,400 --> 00:17:35,640
you know, I've told you a lot 
about myself, but you don't know

368
00:17:35,640 --> 00:17:38,720
enough about my thinking and how
I think about positions to just 

369
00:17:38,720 --> 00:17:41,880
blindly follow my advice. 
So, you know, when you follow 

370
00:17:41,880 --> 00:17:44,440
someone's advice or you follow 
someone's strategy, you really 

371
00:17:44,440 --> 00:17:46,640
have to go very deep and 
understand what you're doing. 

372
00:17:46,960 --> 00:17:50,320
And the biggest thing is, you 
know, make sure you know all the

373
00:17:50,320 --> 00:17:53,600
scenarios of all the outcomes or
as many as you can, right. 

374
00:17:53,960 --> 00:17:57,240
Because you know, the problem is
people think of life as a normal

375
00:17:57,240 --> 00:17:59,080
distribution. 
It's actually not a normal 

376
00:17:59,080 --> 00:18:00,920
distribution. 
It's a very long normal 

377
00:18:00,920 --> 00:18:04,720
distribution and not a lot of 
people appreciate distribution 

378
00:18:04,720 --> 00:18:07,240
of outcomes. 
So that's I would tell myself 

379
00:18:07,240 --> 00:18:11,400
that and to everyone that is, 
you know, understand exactly the

380
00:18:11,400 --> 00:18:15,440
research process, the philosophy
and you know, you don't have to 

381
00:18:15,440 --> 00:18:17,400
agree with it. 
And if it's not for you, it's 

382
00:18:17,400 --> 00:18:19,120
not for you. 
You know, a lot of people don't 

383
00:18:19,120 --> 00:18:22,200
agree with quantitative 
investing methods, right? 

384
00:18:22,200 --> 00:18:24,240
You know, they don't feel 
comfortable with the idea of a 

385
00:18:24,240 --> 00:18:27,040
machine, like that's fine. 
There's nothing wrong with that,

386
00:18:27,320 --> 00:18:27,920
right. 
That's you. 

387
00:18:27,920 --> 00:18:31,160
If you're not comfortable with a
strategy, you know you're going 

388
00:18:31,160 --> 00:18:33,680
to, you're going to misuse the 
strategy. 

389
00:18:33,680 --> 00:18:37,000
And you know, I've seen people 
get comfortable with fundamental

390
00:18:37,000 --> 00:18:38,760
investing. 
You know, they do very well, 

391
00:18:38,760 --> 00:18:41,040
right. 
They have some kind of internal,

392
00:18:41,360 --> 00:18:44,360
you know, process They do. 
And it seems to work fine for 

393
00:18:44,360 --> 00:18:46,680
them, right. 
You know, I wish those people 

394
00:18:46,680 --> 00:18:49,400
very well and they do very well.
But again, for me, I'm a 

395
00:18:49,400 --> 00:18:51,560
quantitative person, so that 
would never work for me. 

396
00:18:51,720 --> 00:18:53,280
So I would never get comfortable
with that. 

397
00:18:53,280 --> 00:18:54,880
Right. 
So, you know, I'm just going to 

398
00:18:54,880 --> 00:18:57,400
search up myself to a lot of 
human biases, right? 

399
00:18:57,400 --> 00:18:58,960
Because, you know, that mean we 
all have bad days. 

400
00:18:58,960 --> 00:19:01,080
That person is going to have a 
bad day, right? 

401
00:19:01,080 --> 00:19:03,120
The moment that person has a bad
day, I'm going to be like I'm at

402
00:19:03,200 --> 00:19:05,200
this was a bad idea. 
And I you know. 

403
00:19:06,240 --> 00:19:08,960
You know, Yang, so much in the 
book I talk about human biases. 

404
00:19:08,960 --> 00:19:10,840
I have whole section cognitive 
biases as well. 

405
00:19:11,080 --> 00:19:13,400
And mental walls. 
You ever do something hit a 

406
00:19:13,400 --> 00:19:14,320
wall? 
We all have. 

407
00:19:14,320 --> 00:19:16,960
I call them mental walls. 
And then I say there's an 

408
00:19:16,960 --> 00:19:18,840
infinite number of ways to make 
money in the market. 

409
00:19:18,840 --> 00:19:22,040
Your job is to find one that 
works for you and echoes. 

410
00:19:22,040 --> 00:19:23,080
Exactly. 
We just met. 

411
00:19:23,080 --> 00:19:25,080
I mean, literally. 
So I love that. 

412
00:19:25,600 --> 00:19:27,120
OK, beautiful. 
Well, Yang, thank you so much 

413
00:19:27,120 --> 00:19:29,560
for taking the time to speak 
today and Congrats on the launch

414
00:19:29,560 --> 00:19:32,400
of your ETF and future ETFs. 
If you go in that direction and 

415
00:19:32,400 --> 00:19:34,760
all the success you're going to 
have, I mean fantastic job. 

416
00:19:35,560 --> 00:19:36,520
All right. 
Thank you so much, Adam, and 

417
00:19:36,520 --> 00:19:37,480
thank you for having me here 
today.