My guest today is Jared Dillian, a former Wall Street trader, DJ, and the best-selling author of Street Freak, No Worries, and his new book, The Awesome Portfolio.
Let me ask you a question: Can you allow your investments to ride without losing sleep or checking your portfolio every eleven minutes?
I have trouble with this. Even though I feel really good about what I own, I still peek at my balances a couple of times a day—just to make sure the world isn’t exploding.
In The Awesome Portfolio, Jared explains why owning one fund with 500 different stocks doesn’t necessarily make you diversified or safe from violent market fluctuations. He argues that a portfolio balanced across five different asset classes—equities, bonds, commodities (like gold), real estate, and cash—will produce very good returns and drastically reduce volatility.
While nothing I say in this discussion should be considered professional financial advice, I think his idea is interesting and worth your consideration.
We also talk about trouble in the bond market, political risk, financial advisor incentives, and investor psychology, including how our emotions can wreck even the smartest investment plan.
What do you think? Share your thoughts in the comments below.
Hey look - I had a piece in ‘The Hill’ today:
Nikole Hannah Jones Just Ran Head-first Into the Great Dumbing Down
ATLANTA FOLKS - come see me at the new Whiplash Comedy Club in Ponce City Market on 10/14.
Thank you tom @tgwtom, Max Sheridan, and many others for tuning into my live video with Jared!
