We discuss:
- Why the impressive historical returns of the US stock market may be an outlier
- The importance of looking at real returns vs nominal returns
- How to build a diversified portfolio to handle different economic scenarios
- The concept of "fractal diversification" in portfolio construction
- Rethinking sustainable withdrawal rates in retirement
- The pros and cons of using leverage in a diversified portfolio
- Unconventional investing beliefs that go against the mainstream
0:00 Introduction
1:14 Jason Buck's background and previous episode recap
2:03 Challenging the "stocks for the long run" idea
4:15 Real vs nominal returns in the stock market
5:35 U.S. market performance compared to other countries
10:43 Is the U.S. market different? Reasons for American exceptionalism
14:18 The Herschel Walker Syndrome in investing
22:47 Why Not An All Stock Portfolio?
31:42 The four quadrant model of portfolio construction
37:05 Fractal diversification in portfolio management
39:56 Adding new assets to a diversified portfolio (e.g. crypto)
45:10 Rethinking withdrawal rates in retirement
50:36 Leverage in diversified portfolios: pros and cons
56:37 Unconventional investing beliefs
1:00:36 Closing thoughts and where to find Jason Buck online
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