Ask The Compound

How Do You Invest in a Bubble?

27 snips
Oct 1, 2025
The hosts tackle the intriguing question of investing during a bubble, offering four strategic approaches. They also dive into the complexities of using home equity within the 4% rule, discussing options like downsizing and reverse mortgages. Balancing enjoyment of wealth with prudent planning is highlighted in the 'Die With Zero' debate. Additionally, they dissect what defines upper middle class in America and how perceptions shift across demographics. It's a thought-provoking discussion perfect for navigating today's financial landscape.
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
INSIGHT

Bubbles Build Future Infrastructure

  • Market booms often leave behind infrastructure that benefits the future even after a bust.
  • Ben Carlson compares AI overinvestment to the railway and dot-com booms that transformed economies despite heavy losses.
ADVICE

Pick A Realistic Strategy, Don’t Try To Time

  • If you think we're in a bubble, choose a strategy: offense, defense, diversify, or do nothing based on your plan.
  • Ben advises diversification or sticking to a trusted asset allocation over extreme market timing.
ADVICE

Tilt Allocation Instead Of Going Full Cash

  • Avoid moving to extremes like full cash; instead modestly tilt allocations to reflect risk preferences.
  • Over-rebalance slightly (e.g., 80/20 to 70/30) rather than attempting perfect timing.
Get the Snipd Podcast app to discover more snips from this episode
Get the app