Herb Morgan of Efficient Market Advisors - ETF Investing, ESG Strategies, and Total Return

Orion's The Weighing Machine
Orion's The Weighing Machine
Episode • Jun 21, 2022 • 41m

As investors continue to search for opportunities that align with their personal beliefs and goals, ESG considerations are playing an increasingly important role in the evaluation of potential investments. As such, ETFs that focus on ESG strategies are growing in popularity. 

In this episode, Rusty talks with Herb Morgan, Sr. Managing Director and Chief Investment Officer at Efficient Market Advisors (EMA). Prior to founding EMA in 2004, Herb was Senior VP of Advisory at Linsco/Private Ledger Financial Services, Inc. now known as LPL Financial. Today, Herb is one of the financial industry’s recognized experts in the area of ETFs and the creator of the Efficient Market Advisors Managed ETF Account, a low-cost, tax-efficient investment account that utilizes ETFs.

As an ETF strategist, Herb talks with Rusty about the current market conditions and his outlook for the ETF industry, how investors should build portfolios for income, and how EMA builds ESG portfolios.


Key Takeaways

  • [02:31] - A brief overview of Herb Morgan's professional history.
  • [04:16] - What Herb’s current outlook is for the ETF industry.
  • [06:53] - How investors should build portfolios for income.
  • [09:16] - EMA's approach to building ESG portfolios.
  • [15:09] - Herb’s thoughts on inflation and how he manages it.
  • [18:36] - Herb's forecast on where the market is headed given the inflation.
  • [22:04] - How Herb adapted portfolios based on inflation and interest rate forecasts.
  • [25:12] - Herb’s thoughts on the possibility of a recession and corporate earnings.
  • [28:18] - What Herb has to say about stock market valuations.
  • [30:10] - The geopolitical situation in Europe and its impact on portfolios.
  • [32:16] - The implications of global debts for markets and the economy.
  • [34:54] - What Herb's personal portfolio looks like.
  • [36:39] - How Herb keeps himself physically and mentally healthy to perform at his best.
  • [38:03] - Herb’s advice for investors in terms of growth.


Quotes

[24:19] - "How can you tell everybody to stay home and close an economy? But to make it up for you, we're going to give you money and therefore you have more money chasing no goods and services because we shut down everything. So, it just created inflation." - Herb Morgan

[33:23] - "We're the only country in the world that really has the luxury and can therefore run this perpetual deficit. And the deficit is financed by the trade deficit. It's one of the reasons we live so much better than anybody else." - Herb Morgan

[38:24] - "Growing is sort of everybody's objective. But the work that it takes to grow does not always appeal to everyone." - Herb Morgan


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1018-OPS-6/13/2022

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