How Regular Investors Should Think About Alternatives to Stocks and Bonds
Excess ReturnsMay 15, 202300:28:02

How Regular Investors Should Think About Alternatives to Stocks and Bonds

With inflation on the rise and the 60-40 stock and bond portfolio coming off one of its worst years ever, many investors are looking for alternatives. In our Show Us Your Portfolio series, we have looked at many strategies that go beyond stocks and bonds and the investors who manage their personal portfolios with them have made a compelling case for why they make sense. But they can also be complex and challenging to understand for many investors.

In this episode, we asked Matt to give us a financial planning perspective on alternative strategies from the perspective of the clients who utilize them. We discuss the pros and cons of these strategies, how to analyze them and the importance of knowing yourself when considering them.

00:00 - Intro
02:33 - We all invest in alternatives
04:45 - What liquid alternatives do clients invest in?
06:01 - How Matt thinks about inflation when building client portfolios
08:47 - The challenge of adding and removing alternatives
10:20 - The major inflation fighting assets Matt sees in client portfolios
12:44 - The balance between simplicity and complexity
14:36 - How Matt views leverage for clients
16:34 - How to look at all the new alternative products now available in ETFs
19:20 - The double edged sword of diversification
20:29 - The importance of behavior when using alternative strategies
24:10 - How does Jack not know about the Shamrock shake?
24:57 - How Ray Dalio helped bring us chicken nuggets
26:16 - Episode summary

ABOUT THE PODCAST
Learning how to be a financial planner is one thing. Doing it is another. Follow along with new financial planners Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau) as experienced veteran Matt Zeigler (@cultishcreative) helps them navigate the complex world of financial planning and learn about the most important topics that impact all of our financial futures. From investments to retirement to college planning to estate planning to insurance and beyond, we will cover the major financial planning issues that impact all of our lives and will provide a framework to help investors tackle them. We hope you will join us on our learning journey.

SEE LATEST EPISODES
⁠⁠⁠https://www.validea.com/the-education-of-a-financial-planner-podcast⁠⁠⁠

FIND OUT MORE ABOUT VALIDEA CAPITAL
⁠⁠⁠https://www.valideacapital.com⁠⁠⁠

FIND OUT MORE ABOUT SUNPOINTE INVESTMENTS
⁠⁠⁠https://sunpointeinvestments.com/⁠⁠⁠

FOLLOW JACK
Twitter: ⁠⁠⁠https://twitter.com/practicalquant⁠⁠⁠
LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/jack-forehand-8015094⁠⁠⁠

FOLLOW JUSTIN
Twitter: ⁠⁠⁠https://twitter.com/jjcarbonneau⁠⁠⁠
LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/jcarbonneau⁠⁠⁠

FOLLOW MATT
Twitter: ⁠⁠⁠https://twitter.com/cultishcreative⁠⁠⁠
LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/matt-zeigler-a58a0a60/