Capital Club John Jennings on Investing with Confidence in the Face of the Unknown
Ready for an insider's view of wealth management, unmasking Wall Street's misaligned incentives, and a dive into the unpredictable world of investing? Join us in this episode as John Jennings, a prominent financial strategist, author, and Forbes contributor, unravels the intricacies of preserving wealth and demystifies common misconceptions surrounding economic growth and stock markets. He talks about Littlewood's law of miracles, which states that highly improbable events always occur. John reflects on Wall Street's marketing machine and how misaligned incentives can lead to disastrous consequences. He also shares his motivation for writing his book: to spread truth and transparency around wealth management to help people have less worry and anxiety.
Please tune in to this insightful conversation for tips on reducing risk when preserving wealth!
[00:01 - 14:11] Opening Segment
- Introducing John to the show
- Luck is created by putting yourself out there in the world and creating opportunities to interact with others
- Investment banks pivoted from a true partnership, private models to publicly traded entities
- Focus on things you can control and influence, not those you cannot
[14:12 - 29:36] The Benefits of Less Active Investing and Knowing Yourself
- The stock market is not the economy; economic growth in the US has zero correlation to the stock market
- Studies show that every time people make a trade, what they sell does better than what they buy
- Stress test portfolios by looking at historical excellent and bad periods
- Creating wealth usually involves taking high risks and putting in a lot of hard work
[29:37 - 36:04] Smart Strategies to Preserve and Grow Great Wealth
- Instead of taking high-risk investments, diversify and reduce the risk
- When you have great wealth, decide how much to put in each bucket
- Use simple algorithms to make decisions where there is uncertainty
- The stock market is not the economy, so economic indicators won't tell you how areas of the stock market will do with precision
[36:04 - 38:42] Closing Segment
Quotes:
"Successful investing typically means being more boring." - John Jennings
"Using algorithms to help you make decisions works better than just unstructured judgment." - John Jennings
Connect with John!
Download our FREE Strategizing for Inflation Guide here: https://www.excelsiorgp.com/download/
Connect with me on LinkedIn!
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