The Meb Faber Show - Better Investing A Golden Moment for Asset Allocation? | Mike Philbrick | #593
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Aug 15, 2025 
Mike Philbrick, CEO of ReSolve Asset Management and a leading expert in asset allocation, returns to discuss the shifting importance of gold and Bitcoin in today’s investment climate. He delves into gold's historical performance, its ability to mitigate home country bias, and the role of gold futures in a traditional 60/40 portfolio. The conversation reveals insights on Bitcoin's evolving stance alongside gold as essential assets for diversification, emphasizing innovative strategies like return stacking to enhance portfolio resilience.
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Scarce Assets Becoming Prudent Allocations
- Gold and Bitcoin moved from contrarian to prudent as institutions and sovereigns adopt them.
- Scarce assets now hedge monetary debasement and geopolitical risk while providing diversification.
Gold's Post‑1971 Risk Premium
- Gold has exhibited a positive risk premium since 1971 and absorbs volatility for return.
- Sovereign demand spiked after asset seizures, driving large central bank gold purchases.
Gold Can Mirror Bonds In 60/40 Portfolios
- Replacing bonds with gold in a 60/40 historically produced similar returns and risk metrics.
- A 20% gold overlay can raise returns ~0.9% and cut drawdowns ~3.5% historically.