WCI #456: Alternative Investments with Larry Swedroe

Jan 29, 2026

Larry Swedroe, author and investment researcher known for evidence-based investing. He tackles AI valuation and whether today’s tech surge is a bubble. He argues for value, international exposure, and patience. He breaks down alternatives—from real estate and reinsurance to crypto and private credit—and explains why some illiquid strategies can work and which to avoid.

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ANECDOTE

Pickleball, Injury, And Daily Research Routine

Larry plays pickleball every day and tore his right rotator cuff recently.
He still spends hours daily reading academic papers and writing accessible summaries for investors.

INSIGHT

High Valuations Don’t Guarantee A Bubble

Broad market valuations are high but not necessarily a classic bubble like the late 1990s.
High growth stocks are richly valued and carry risk if required capital spending erodes future free cash flow.

ADVICE

Don’t Time Markets—Adjust Small Allocations

Avoid market timing but consider modestly trimming equities when valuations look stretched.
If reducing risk, 'sin a little' by shifting a few percent from broad market to cheaper areas like value or international.

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Today we're diving into all the stuff everyone seems to be arguing about lately: AI and whether it is actually a bubble, why nobody wants small value, international, or bonds anymore, and what to say to the growing crowd of S&P-500-only investors. We also break down the world of alternative investments in a way that is simple and actually useful, from real estate and crypto to reinsurance, annuities, peer-to-peer loans, commodities, and all the messy complexity in between. And of course, we talk about your new book Enrich Your Future. It is a packed episode, so settle in and enjoy.

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The White Coat Investor Podcast launched in January 2017, and since then, millions have downloaded it. Join your fellow physicians and other high income professionals and subscribe today! Host, Dr. Jim Dahle, is a practicing emergency physician and founder of The White Coat Investor blog. Like the blog, The White Coat Investor Podcast is dedicated to educating medical students, residents, physicians, dentists, and similar high-income professionals about personal finance and building wealth, so they can ultimately be their own financial advisor-or at least know enough to not get ripped off by a financial advisor. We tackle the hard topics like the best ways to pay off student loans, how to create your own personal financial plan, retirement planning, how to save money, investing in real estate, side hustles, and how everyone can be a millionaire by living WCI principles.

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00:00 WCI Podcast #456 03:43 Larry Swedroe Interview 08:17 AI MAG7 Bubble 24:36 Investing in Real Estate 38:28 Investing in Crypto? 42:06 Investing in Reinsurance 54:27 Investing in Private Credit 01:04:44 Optimizing vs. Satisficing 01:07:32 Larry Swedroe's "Enrich Your Future"