Insight is Capital™ Podcast

Ric Edelman, Founder, DACFP (Digital Assets Council of Financial Professionals & Edelman Financial Engines, the largest independent U.S. RIA firm joins us for 80 minutes to discuss his thoughts on Crypto, Bitcoin, Ethereum, and Blockchain. Ric Edelman shares his history in the financial industry as the founder of Edelman Financial Engines, and as founder of DACFP, the Digital Assets Council of Financial Professionals, which he founded more recently to address the growing needs advisors have to level up their awareness and knowledge of the transformational 'Crypto' asset class.In our conversation, Mr. Edelman provides an excellent overview and understanding of the most important components of the cryptocurrency and blockchain space.He warns advisors to not be caught on the back foot when they are advising clients on whether or not e.g. Bitcoin is an asset they should or should not consider adding to their portfolios. Currently 17% of all Americans own some bitcoin, and it's popularity has taken on wide network effects during the run-up of the last two year. It's expected that 20 million Americans will invest in digital assets in the near future. 78% of U.S. investors say digital assets are appealing. 82% of clients expect their financial advisors to be knowledgeable about bitcoin."It's no longer an asset you can wave off as a fad," explains Edelman. "If you're going to provide any kind of advice on anything 'crypto' you had better make sure you have acquired the required knowledge to do so.""It is real. It is here to stay, and it is one of the most profound and transformational innovations that will shape the world," says Edelman. "You have a fiduciary responsibility to your clients to become an expert on this subject. It will also set you apart competitively from all other advisors who perilously continue to wave it off as irrelevant or unimportant."If you've been asked, for example, what Blockchain, Bitcoin or Ethereum are, and found you weren't having much success sticking the landing, here in our conversation, Ric Edelman shares some of his most successful anecdotes and analogies that will help you to provide a significantly better understanding to your clients, and everyone else you talk to.We also get into a wide ranging and deeper discussion on the scalability and implementation of real-world commercial use cases, valuation and the origins of Bitcoin and Ethereum valuations.*****The DACFP was conceived in 2018 by Ric Edelman, one of the top thought leaders in the financial services industry, and is an independent, educational organization, with a most impressive faculty of instructors, providing advisors with a 13-Credit Course Certificate in Blockchain and Digital Assets (designed for financial advisors). Raise Your Average listeners get 20% OFF the fee for the DACFP program with the discount code:GENSLERWEALTH20Visit https://dacfp.com to enroll and claim your discount.*****Where to find Ric Edelman, DACFP:Ric Edelman on LinkedinRic Edelman on TwitterDACFPThe Truth About Your FutureWhere to find the Raise Your Average crew:ReSolve Asset ManagementReSolve Asset Management BlogMike Philbrick on LinkedinRodrigo Gordillo on LinkedinAdam Butler on LinkedinPierre Daillie on LinkedinJoseph Lamanna on LinkedinAdvisorAnalyst.com*****"You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie MungerWelcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars. We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)

Darius Dale, Founder & CEO, 42 Macro LLC, and Mary Hagerman, Portfolio Manager, Raymond James (our guest advisor panelist) joined us on Raise Your Average for a full market macro overview. Darius Dale takes us through the inner workings of his and his firm's "GRID" macro framework as well as macro-forecast modelling framework. We discuss his outlook at the time for the markets and economy, and the inflationary and simultaneously, deflationary dynamics that are causing confusion surrounding whether inflation might be pernicious or temporary.The key takeaway from this conversation is that we are likely entering a period of heightened volatility as the market reacts to what could be a temporary inflationary pulse, as Dale's framework suggests there is a "sea of D's" or (D)eflationary signals in 2022. It remains to be seen what the half-life could be of a 'reflation' trade (that favours for example value stocks vs. growth stocks) as we progress to toward the second half of this year.Darius Dale's framework provides a fully quantified view of all market fundamentals - what he calls "Quantamental" – and it provides a magnificent view from 30,000 feet. Among the highlights of our conversation was a series of 3 charts that demonstrate quantitatively and eloquently the zeitgeist of inequality in the U.S., which gave rise to the Fed's disproportionately large stimulus reaction during the pandemic and how that has given rise to the inflationary pressure boundaries we are currently breaching. We also discuss the nuance of the question, "Is it inflation, or is it inflationary?"Where to find Darius Dale:Darius Dale on Linkedin42 Macro LLCDarius Dale on Twitter*****Where to find the Raise Your Average crew:ReSolve Asset ManagementReSolve Asset Management Blog Mike Philbrick on Linkedin Rodrigo Gordillo on LinkedinAdam Butler on LinkedinPierre Daillie on LinkedinJoseph Lamanna on LinkedinAdvisorAnalyst.com*****This episode was recorded November 2021"You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie MungerWelcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars. We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)

Michael White, CFA, Portfolio Manager, Multi-Asset Strategies at Picton Mahoney Asset Management joins Pierre Daillie to discuss how taking a multi-asset/multi-strategy approach to diversification - using alternative strategies that don’t rely on stock and bond markets rallying - can potentially help diversify the risks that investors are taking in the market and enhance the quality of returns in portfolios.

Phil Huber, CIO, Savant Wealth Management, based in Chicago, joins us for a deep dive on how advisors can thoughtfully and successfully implement alternatives to gain a competitive edge in portfolio construction. Phil is a former award-winning advisor, was appointed CIO, at Savant following the merger of Huber Financial Advisors and Savant Capital, which forged their $8-billion Chicago-land behemoth Savant Wealth Management RIA two years ago.Recognizing that there was a massive proliferation of alternative investment vehicles, he decided to publish a tour-de-force guide that provides detail, reference, and rich insights on understanding how and why the universe of alternative investments available today fit into today's traditional retail investment portfolios.Today's capital market assumptions (CMAs) show that investors must either lower their forward expected investment returns forecasts or learn how to productively use alternatives to augment total return and mitigate the risks inherent in today's low rates, low yields, and richly valued equity and bond markets.We explore the numerous new tools and vehicles advisors, and in turn, their clients – investors – can exploit the alternatives universe that was once only available to UHNW investors and institutions. We also explore how advisors can begin to introduce the implementation of this universe of alternative investment solutions.Phil provides insight as to what the five main categories of alternatives investors need to begin to consider adding to against their legacy 60/40 portfolios, which for the most part have, enjoyed a 40-year secular disinflationary tailwind since the 1980s, in order to reduce the risk of being blindsided by changes in market and economic regimes."The best portfolio is the one you can stick with," over the long term, through thick and thin, and since behavioural risk is potentially the most deleterious and costly risk investors can experience in their lifetimes, it has now become critical for advisors to set themselves apart by helping their clients to construct portfolios that are resilient and sustainable, from the point of view of being able to maintain strategic asset allocations over the long-term, without being destroyed by future flights-to-safety.*****Where to find Phil Huber, CIO, Savant Wealth ManagementPhil Huber on LinkedinPhil Huber on Twitter (@bpsandpieces)Bps and Pieces BlogSavant Wealth ManagementPhil Huber's New Book:The Allocator's Edge: A modern guide to alternative investments and the future of diversification – https://links.advisoranalyst.com/The-Allocators-Edge*****Where to find the Raise Your Average crew:ReSolve Asset ManagementReSolve Asset Management BlogMike Philbrick on LinkedinRodrigo Gordillo on LinkedinAdam Butler on LinkedinPierre Daillie on LinkedinJoseph Lamanna on LinkedinAdvisorAnalyst.com******"You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie MungerWelcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)

Preet Banerjee, Founder and CEO of MoneyGaps (https://moneygaps.com) joins us for a deep dive into the topic of the value of financial advice, and he has been researching the answer to the question, "How do you quantify the value of financial advice?". This is a quintessential question, and the answer is not simple. We get into an eloquent and well explained conversation about the different qualitative and quantitative components that make up that value. As pretext, Preet Banerjee is in the process of completing a Ph.D. on this very subject of how to quantify the value of financial advice (across all advice channels).In addition, Preet recently founded MoneyGaps.com (2019), a software service for financial advisors to help them deliver a lighter, but more holistic planning experience for Canadians who may not have millions of dollars. He explains how his company's Hybrid Advice Software-as-a-Service platform can be used by Canadian Advisors to bridge their ability to do business across the generational and/or under-accumulated wealth divides.Preet is the bestselling author of the personal finance books, Stop Over-Thinking Your Money!: The Five Simple Rules Of Financial Success (2014).Where to find Preet BanerjeePreet Banerjee on LinkedinMoneyGaps (for Advisors)PreetBanerjee.comWhere to find the Raise Your Average crew:ReSolve Asset ManagementReSolve Asset Management BlogMike Philbrick on LinkedinRodrigo Gordillo on LinkedinAdam Butler on LinkedinPierre Daillie on LinkedinJoseph Lamanna on LinkedinAdvisorAnalyst.com *****"You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie MungerWelcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)

David Blanchett, Head of Retirement Research at $1.5-trillion AUM, PGIM (Prudential) and Dr. Michael Finke, Ph.D., Professor of Wealth Management, The American College, join us for a deep dive discussion into the challenges facing retirees, new ways of thinking about retirement and longevity, and new solutions advisors can use to help their clients optimize funding retirement income liabilities in this low rate, low yielding, & historically sky-high equity valuation environment. They answer the question, What are some of the newer ways retirees can approach this conundrum?The concurrence of demographic waves, economic and market conditions, equity valuations and bond yields, have culminated in a situation that leaves many investors nearing or at retirement, cornered by a limited number of effective, and not-so-effective, investment income generating options, ranging from moderately risky, to highly risky. There's a great deal to consider, and we get into a profound look at all of the considerations, and some options may be considerably more useful and less risky than others from all angles given the current investment climate.Where to find David Blanchett and Michael Finke:David Blanchett on LinkedinMicheal Finke, Ph.D. on LinkedinWealth, Managed PodcastGuaranteed Income: A Licence to Spend Where to find the Raise Your Average crew:ReSolve Asset ManagementReSolve Asset Management BlogMike Philbrick on LinkedinRodrigo Gordillo on LinkedinAdam Butler on LinkedinPierre Daillie on LinkedinJoseph Lamanna on LinkedinAdvisorAnalyst.com*****"You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie MungerWelcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)

Mary Hagerman, accomplished, award-winning Investment Advisor, Portfolio Manager, and best-selling author of 'The Black Belt Investor', at Raymond James, based in Montreal, joins us for a fireside chat. Our conversation spans from Mary's early career, her longstanding desire to implement true fiduciary financial planning in what was a traditional, transactional stockbroker/advisor driven business, to evolving her practice into a fee-based, discretionary portfolio management business model that allowed her to fulfill her career aspirations. The takeaway: It wasn't easy. There were numerous people, industry biases, and conflicting interests and challenges that could have just as well succeeded in dashing those hopes. But, there were also great mentors, and along her journey, her love and learning of martial arts (which inspired her to write her aptly titled book), which helped to embolden her resolve to become the wealth manager she is today.In the midst of the mass financial trauma of the GFC in 2008-2009, Mary came to the wholehearted realization she wanted to transform the way she advises and invests with and for her clients, to include and substitute legacy investment products with low cost, index-based ETFs, and that if she was going to go higher and farther in the industry, her practice would have to make the leap into the fee-based realm. Unwittingly, Mary became one of the earliest women at her firm, and in Canada, to make the jump to not only using ETFs, but becoming fee-based, and jumping through the educational and regulatory hoops to earn the privelege of being a discretionary portfolio manager.Mary discusses the challenges she faced as a woman coming up in the financial advisory business. In that regard, things have changed since, and she also reveals what she sees as all the silver linings – that this is a great opportunity and business for women to be in. Women, she remarks, are very well suited empathetically, and EQ wise, perhaps naturally more so, than men, better equipped at asking the hard, more sensitive and emotional questions, that men often shy away from, that get to the heart of peoples' relationship with money.Finally, we talk about her highly regarded book, her newly formed charitable foundation (and how she did it), and her key advice for women wanting to be wealth advisors.Where to find Mary HagermanMary Hagerman on LinkedinThe Mary Hagerman Group at Raymond James Ltd.Mary Hagerman's bestsellerThe Black Belt Investor: A Martial Arts Guide to Wealthness; How to Kick Butt and Feel Rich!

Jeff Bradacs, CFA, Portfolio Manager, Picton Mahoney Asset Management joins Pierre Daillie to discuss how a market neutral strategy can help keep Mr. Market quiet, especially in today’s economy and market that is transitioning from a high-growth, early-cycle recovery stage to a slower-growth, mid-cycle environment. Jeff breaks down how a market neutral strategy generates returns through stock selection, where he and his team are finding opportunities and what they see in the macro environment.Where to find Picton Mahoney Asset Management:Picton MahoneyPicton Mahoney Insights

Michael Green, Michael Green, Chief Strategist at Simplify Asset Management joins Pierre Daillie and Adam Butler for a revealing conversation about his thesis that stock markets are less efficient and more 'inelastic' because of the proliferation of passive index investing over the last few decades, and what that means. His thesis and research, now corroborated and examined by academic studies, labelling it as the 'Inelastic Market Hypothesis,' by Xavier Gabaix and Ralph Koijen, Jean-Philippe Bouchaud, and Valentin Haddad, shine a bright new light on how and why markets are displaying increasingly violent and rapid bouts of volatility, that may intensify over the coming years and decades.Research mentioned in the conversation:In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis (Gabaix and Koijen)The Inelastic Market Hypothesis: A Microstructural Interpretation (JP Bouchaud)How Competitive is the Stock Market? (Valentin Haddad)Robin Wigglesworth's Book - Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance ForeverWhere to find Michael Green, Chief Strategist, Simplify Asset Management:Michael Green on LinkedinMichael Green on Twitter - @profplum99Simplify Asset Management******Where to find the Raise Your Average crew:ReSolve Asset ManagementReSolve Asset Management BlogMike Philbrick on LinkedinRodrigo Gordillo on LinkedinAdam Butler on LinkedinPierre Daillie on LinkedinJoseph Lamanna on Linkedin*****"You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie MungerWelcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.

Michael Green, Chief Strategist at Simplify Asset Management joins Pierre Daillie and Adam Butler for a blockbuster of a conversation about his macro view of the economy, inflation, markets and the dynamics of today's equity and fixed income markets, as well as his in depth view that stock markets are less efficient and more 'inelastic' due to the proliferation of passive index investing, and what that means.Our conversation begins with Michael setting the stage for the entire conversation by describing how and why the 70s inflation occurred. [5:00] Instead, with the power of historical hindsight and investigation of all data from that period, Michael eloquently describes in non-jargony fashion what actually happened and provides a deeply profound view of how the economy works and how it worked then, and asks the thought -provoking rhetoric to shift our perspective on what we should be looking at if we want have a true look at what is happening.Then [19:35] Michael explains his view on peak productivity, i.e. that productivity peaks at age 45 specifically in the context of today's demographics, and how that dynamic is contributing to his view on whether or not we are entering an inflationary spiral. [21:30] Adam asks Michael to describe what he thinks are the underlying mechanics and the subtext of what is driving the inflation impulse, i.e. bottlenecks and underinvestment, as well as inflation the 'Meme' or 'Political Football' or 'Inflation, the Performance Art.'[23:45] Michael explains what is, and what is NOT inflation. [28:40] Michael shares his views on what's happening with surge seen in commodities, shelter costs, labour/wages, followed by a striking explanation of what's happening in shipping/trucking/transportation.[43:26][59:05] "As you know 'I celebrate anytime I'm called the dumbest man alive," says Green. "I think that possibly the best thing that can happen to me, for a very simple reason." Green says we are in a regime where commodity prices are nearing all time highs, there's already demand destruction in places like oil and gas, and everyone's convinced the only path is higher - "That feels so wrong to me." [1:00:21] At [1:13:30] we wrap up the macro discussion around inflation and segue to Michael's "Inelastic Market Hypothesis" the antithesis of the "Efficient Market Hypothesis." [1:20:21] Mike explains his thesis that as a result of the many trillions of dollars in flow to passive funds and ETFs, stock markets have become increasingly 'inelastic' or susceptible to secular reversals in sentiment - that the way markets work today means that reversals could be catastrophic to equity prices when and if the trend reverses as investors age.Stock Markets Are Becoming Less Efficient, and More 'Inelastic.' What does that mean?Research mentioned in the podcast:In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis (Gabaix and Koijen)The Inelastic Market Hypothesis: A Microstructural Interpretation (JP Bouchaud)How Competitive is the Stock Market? (Valentin Haddad)Where to find Michael Green:Michael Green on Linkedin - https://www.linkedin.com/in/michael-green-9a15142/Michael Green on Twitter - @profplum99 - https://www.twitter.com/profplum99Simplify Asset Management - https://www.simplify.us/******Where to find the Raise Your Average crew:ReSolve Asset Management - https://investresolve.com/ReSolve Asset Management Blog - https://investresolve.com/blog/Mike Philbrick - https://www.linkedin.com/in/michaelphilbrick/Rodrigo Gordillo - https://www.linkedin.com/in/rodrigogordillo/Adam Butler - https://www.linkedin.com/in/adamdbutler/Pierre Daillie - https://www.linkedin.com/in/pierre-daillie-advisoranalyst/Joseph Lamanna - https://www.linkedin.com/in/josephlamanna/AdvisorAnalyst.com - https://advisoranalyst.com"You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie MungerWelcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars. We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.