The Meb Faber Show - Better Investing Chris Cole, Artemis Capital Management - You Want To Diversify Based On How Assets Perform In Different Market Regimes | #317
4 snips
Jun 2, 2021 AI Snips
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Transcript
Episode notes
Recent Decades Were Anomalous
- The past 40 years of simultaneous stock and bond gains are historically anomalous and likely won't repeat.
- Basing portfolios only on recent decades creates systemic risk for future retirees and institutions.
Simulation Win With Long-Duration Bonds
- Chris recounted winning a trading simulation by loading up on long-duration zero-coupon debt starting in 1980.
- That story highlights how regime context (high rates then falling) can make contrarian bets pay off.
Diversify By Market Regime
- Diversify by how assets behave across market regimes, not by traditional asset-class labels.
- Hold regime diversifiers (equities, bonds, fiat-alternatives, long volatility, trend commodities) and rebalance disciplinely.