RgStudio Asset allocation and portfolio construction are my passions, and there's a deeply personal reason behind it. Ray Dalio calls diversification the " Holy Grail " of investing, and it can potentially transform your thinking about financial planning, investing, and achieving your dreams. In this interview, I share my personal story about my commitment to non-correlated diversifiers that thrive in a down market.
My family faced a financial crisis when my grandmother needed a nearly $1 million surgery. The potential for bankruptcy was real. No emergency fund could handle such a massive expense.
That’s why having assets in your portfolio that can be relied upon to go up when the market declines are crucial. Imagine needing to come up with several hundred thousand dollars for whatever reason in October 2022 when a traditional 60-40 portfolio was down 21%. However, alternative assets such as managed futures were up as much as 47% then.
That’s the potential salvation we needed if those huge expenses had arrived at the worst possible moment. This experience taught me the importance of asset allocation, especially for someone with a 50+ year time horizon. Because unpredictable events will happen—black swan events that could bankrupt you if you're not prepared.
Sleeping Well At Night in all markets and economic conditions requires knowing you’re covered in case something terrible happens that you can't yet imagine. That’s why it’s my privilege to present this intervie.
