444: 3 Assets That Might Not Diversify as Well as You Think
Retire With Purpose - The Retirement Podcast
Casey Weade
4.7 • 564 Ratings
🗓️ 24 June 2024
⏱️ 26 minutes
🧾️ Download transcript
Summary
Diversification is a key principle in investing, where you often combine assets with differing performance characteristics. However, this strategy is not foolproof.
In this episode, we discuss:
- The definition of "uncorrelated assets"
- Why real estate's correlation with stocks has increased
- What you need to know about "junk bonds" and crypto
- Assets that ARE negatively correlated
Today's article comes from Morningstar.com titled, 3 Assets That Might Not Diversify as Well as You Think. Listen in as Founder and CEO of Howard Bailey Financial, Casey Weade, breaks down the article and provides thoughtful insights and advice on how it applies to your unique financial situation.
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Show Notes: Howardbailey.com/444
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Transcript
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| 0:00.0 | As an investor, what's your goal? You want to increase your returns, but not only do you want to |
| 0:04.2 | increase your returns, but you also want to lower your risk. How is that accomplished? Well, |
| 0:08.4 | historically, that's accomplished through diversification. You want to find uncorrelated assets, |
| 0:14.1 | but in a world, we're finding that asset classes continue to get ever more correlated, where do you |
| 0:19.4 | turn? Today, we're going to examine different |
| 0:21.9 | asset classes from real estate to gold, cryptocurrency, even bonds, and more to try to answer |
| 0:28.3 | that question. |
| 0:42.9 | Hey, this is Casey Weed, and it is my mission to deliver clarity and purpose and elevate meaning in your life. |
| 0:44.2 | If you're new to the show, I want you to know how we accomplish that. |
| 0:47.7 | We do that both through financial and non-financial conversations here on the podcast. |
| 0:52.4 | We love to bring you world-class guests from a variety |
| 0:55.7 | of different disciplines where I deconstruct those thoughts that they have and the expertise they |
| 1:00.5 | bring to the table to add more value to your life. But then every single Friday, you'll find |
| 1:05.4 | us getting together with you in a shorter form of a pod where we are going to talk about trending topics. And a lot of |
| 1:12.5 | these trending topics, if not all of them, are going to be focused on our weekend reading |
| 1:16.9 | for retirees email series. That's one email curated by myself and our team that hits your inbox |
| 1:23.1 | every single Friday. We go out, we sift through all the garbage out there in the internet to |
| 1:28.2 | deliver you little diamonds, little pieces of gold that can elevate this stage of your life. |
| 1:35.2 | Today, we are going to be focused on an article that is about diversification. If you want to |
| 1:40.0 | link to this article, check it out in the show notes. But be sure to get signed up to receive this weekly email along with all kinds of other goodies will provide you as a subscriber. |
| 1:50.7 | Webinar invitations, white paper giveaways, assessments, all kinds of great stuff. |
| 1:56.7 | To get signed up, all you have to do is shoot us a text with the key letters, |
... |
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