Rethinking the 60-40 Portfolio

This chapter explores the waning effectiveness of the traditional 60-40 investment model amid shifting market conditions. It highlights the urgency for investors to seek diversification through alternative investments that can yield better returns in today's unpredictable economic landscape.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

On today’s episode, Clay is joined by Nelson Chu to do a deep dive on private credit.

Nelson Chu is an experienced serial entrepreneur and the Founder and CEO of Percent, the modern credit marketplace. After witnessing the inefficiencies in the private credit markets, Nelson was inspired to transform this industry for the better and founded Percent in 2018.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

02:25 - Why we may continue to see a decline in the use of the 60/40 portfolio.

06:56 - The state of credit markets today.

12:38 - How private credit fits into the bigger credit market picture.

13:16 - What has led to the massive growth of private credit since the great financial crisis.

17:22 - How a typical private credit deal is structured.

22:50 - Why companies utilize private credit in their capital structure.

26:05 - Current interest rates in a private credit deal.

26:26 - Default rates in private credit.

38:40 - How Percent is helping satisfy high demand in the private credit market.

41:23 - How to get diversified in private credit.

52:02 - The most important things to understand prior to investing in private credit.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Check out our newly released TIP Mastermind Community.
Learn more about Percent.
Learn more about the Berkshire Summit by clicking here or emailing Clay at clay@theinvestorspodcast.com.
Related Episode: TIP559 Mastering the Market Cycle by Howard Marks or watch the video.
Follow Clay on Twitter.

NEW TO THE SHOW?

Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

Bluehost
Fintool
PrizePicks
Vanta
Onramp
SimpleMining
Fundrise
TurboTax

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app

Home Top podcasts Popular guests