Portfolio Construction in a Volatile Market

The investment landscape is transforming before our eyes, and old paradigms simply won't cut it anymore. In this conversation with Paisley Nardini, we dive deep into what modern portfolio construction really means in today's volatile market environment.

Paisley brings her institutional expertise to bear on questions every investor is asking: Is the 60-40 portfolio truly dead? How should we think about alternatives? What's the difference between backward-looking portfolio construction and forward-thinking approaches? With candor and clarity, she challenges conventional wisdom while offering practical insights that both advisors and individual investors can apply.

One of the most powerful revelations from our discussion is Paisley's observation that "diversification means there's always something in your portfolio that you hate." This uncomfortable truth highlights why true diversification feels difficult - it requires owning assets that don't all move in lockstep, creating natural tension but ultimately greater stability.

We explore the evolution from the traditional 60-40 split to what Paisley calls the 50-30-20 approach, with that crucial 20% representing alternatives as the "third leg of the stool." We dissect the differences between private market investments (with their liquidity constraints) and liquid alternatives that provide diversification without sacrificing accessibility when markets present opportunities.

For advisors and investors alike, this episode offers a masterclass in thinking beyond asset classes to objective-based portfolio construction. As markets continue their volatile dance and correlation patterns shift, understanding these dynamics isn't just academic - it's essential for navigating the financial future with confidence.

Guest: Paisley Nardini, CFA, CAIA
Bio: Paisley is a portfolio manager and multi-asset strategist at Simplify focused on product innovation, thought leadership and portfolio management. She is a frequent author of thought leadership and marketing initiatives. She also sits on the investment strategy committee for The Wealth Consulting Group. Prior to Simplify, she was a client portfolio manager and strategist for Invesco's Multi-Asset Solutions team, overseeing the business management and growth of the investment strategies. 

Email: paisley.nardini@simplify.us
Webpage: https://www.simplify.us/leadership


Find Du Charme Wealth Management here:
https://ducharmewealth.com/contact-us/

[00:00:00] Intro-Is the 60-40 Portfolio Dead?
[00:03:30] Market Volatility and Portfolio Construction.
[00:11:20] Diversification's Uncomfortable Reality.
[00:18:20] Private Markets: Liquidity vs. Returns.
[00:30:20] The Case for Liquid Alternatives.
[00:43:15] Active Management Evolution.
[00:52:10] Conclusion and Passive Flows Discussion.

#podcast #wealthmanagement #investing #southernutah #stgeorgeutah #investmentstrategy #advisors 

DISCLAIMER:
Information presented on this program is believed to be factual and up-to-date, but we do not guarantee its accuracy, and it should not be regarded as a complete analysis of the subjects discussed. Discussions and answers to questions do not involve the rendering of personalized investment advice, but are limited to the dissemination of general information. A professional advisor should be consulted before implementing any of the options presented. Encompass More Asset Management LLC is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC) and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements.