Orion's The Weighing Machine

In today’s episode, Rusty and Robyn talk with Suzanne Daly, Vice President of Model Portfolios at Fidelity Investments. After working with brokers, dealers, RIAs, and multi-family offices at Fidelity for more than 18 years, Suzanne now oversees the managed account model portfolios and managed accounts distribution efforts. Together with her team, she helps firms optimize their tech stacks, assembling efficient workflows, and outsource investment management.Suzanne talks with Rusty and Robyn about the framework for holistic wealth planning, the criteria for outsourcing investment management, and the generational differences and challenges in the advising workplace."A financial plan is the map of how individuals get from point A to point B. But there couldn't be a more personalized journey. Your point A looks a lot different than my point A, and my point B may look a lot different than your point B. So the beauty of what an advisor has to do is chart that course for the client." ~ Suzanne DalyMain Takeaways  Gen Z investors have changed the pace of advisor-client relationships. Baby Boomer investors put a lot of value in portfolio construction management, research, and due diligence whereas Gen Zs are considering the non-financial aspects of their assets (i.e. digital presence).  The three key principles of holistic financial planning include continuous engagement, creating comfortable and personable experiences, and comprehensive services. Outsourcing to third-party investment managers can help you save time, especially if they are experts in portfolio construction. Segmentation drives personalization across portfolios. It also ensures high performance and strong ties with every client. Advisors with high emotional intelligence (EQ), listening skills and empathy, are the ones who build and maintain lasting relationships with their clients. Links Suzanne Daly on LinkedIn Fidelity Investments Walking on Sunshine by Katrina & The Waves Sustainable Investing for Advisors: Having Better Conversations with Clients (White Paper) Investment Management Support for Advisors: Using Outside Resources (White Paper) Pathways to Success for Emerging Advisors (White Paper) Delivering Value to Gen XYZ Clients (White Paper) Peloton Netflix Kitces and Carl Podcast Craig Iskowitz William Trout FinPoint Podcast Jordan Burgess Dirk Hofschire The Boys in the Boat: Nine Americans and Their Epic Quest for Gold at the 1936 Berlin Olympics by Daniel James Brown Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2427-OAS-9/8/2021

In today’s episode, Rusty and Robyn talk with Glenn Dorsey, head of client portfolio management at Clark Capital Management Group.By the time he was 10, Glenn already had a deep fascination with the market and was trading stocks. In college, he double-majored in accounting and finance and got his CFA and CAIA designations. Glenn has been offering his expertise in portfolio management to well-known firms for more than three decades, putting Clark Capital’s client advisor service on an explosive growth trajectory.Glenn talks with Rusty and Robyn about the impact of COVID resurgence and the effects of inflation and government debt on investment decisions."It’s like an analogy for turbulence. Would it be surprising if you need to put your seatbelt on for a little bit? No, not really. Is it something that we need to make major changes in the portfolio for? No, not really. Let's just be aware that all of the flights won't be 100 percent smooth all the time." ~ Glenn DorseyMain Takeaways  Communication is the key to achieving high performance in an investment firm. Partners and financial advisors need to rally around the goal of delivering excellent results for clients. Advisors need to be observant of national and local pandemic mandates. The unknown nature of the pandemic makes open communication and ongoing education even more important.  Regardless of the inflation measure you’re looking at, it’s better to be invested and actively managing your portfolio than to hold back.  Most portfolios are balanced between areas that benefit from an economic reopening and those that benefit from work-from-home culture. Links Glenn Dorsey on LinkedIn Clark Capital Management Group The Only Way I Know by Jason Aldean Mitchell Hutchins Paine Webber FICO Federal Reserve Bitcoin Danny Meyer Psychology of Money by Morgan Housel Setting the Table by Danny Meyer Finding Mastery Podcast The Tim Ferriss Show Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2368-OAS-8/24/2021

In today’s episode, Rusty talks with Larry Swedroe, the director of research for Buckingham Strategic Wealth.Larry finished his MBA in Finance and Investment from NYU. Larry stays connected to the financial industry by spearheading research for Buckingham and the BAM Alliance, but he’s also a prolific writer who has authored or co-authored 16 books. His mission is to explain investing theories to investors in an accessible and straightforward way.Larry talks with Rusty about evidence-based investing, the effects of sustainability on investing, and diversifying portfolios with risky assets."You should invest in as many unique sources of risk as you can identify that meet all of the criteria that I established—those five criteria of persistence, robustness, pervasiveness, implementability, and intuitive rationale. Everything we do is based upon not my opinion, but the evidence has to meet those criteria" ~ @LarrySwedroeMain Takeaways  Evidence-based investing is always the winning strategy. Focusing on the risk you can handle and ignoring stock picking and market timing can help you beat the market. Larry’sMy three rules of investing — are: give advice based on evidence, identify risk factors, and examine the robustness of the market.  The five criteria for examining risk —are persistence, robustness, pervasiveness, implementability, and intuitive rationale. Sustainable companies get better ratings, which then eventually helps them increase their cash flows and drive their valuations up. Investors are now seeing this trend, too, and their actions as investors can impact how companies implement their objectives. Risky assets should have similar risk-adjusted returns. Portfolios must be diverse and should consider including alternative investments. Blockchain technology is truly innovating the finance world, but the key advice for investors is to assess and accept the changing regulations and the massive illiquidity it might face. Links Larry Swedroe on Twitter Larry Swedroe on LinkedIn Garryowen (from the film They Died with Their Boots On featuring Errol Flynn) Buckingham Strategic Wealth Reducing the Risk of Black Swans by Larry Swedroe Warren Buffett Lost $132 Million On Financial Weapons Of Mass Destruction Wall Street Journal Continental Can Company Kimberly Clark Baruch Lev A note on the relationship between Fama-French risk factors and innovations of ICAPM state variables Morningstar Appirio Parametric Portfolio Association Levi Strauss Cliffwater Stoneridge Ray Dalio Harvard University Yale University SEC Bernard Baruch’s 10 Trading Rules Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2344-OAS-8/19/2021

In today’s episode, Rusty and Robyn talk with Manish Khatta, President and CIO at Potomac Fund Management, Inc.Manish is a quantitative analyst and a self-professed math geek. His love for mathematical algorithms and finance blossomed from what was supposed to be a summer job with Potomac before entering law school. Now, a lifelong Protomac employee, he continues to lead and share his expertise in quantitative trading systems.Manish talks with Rusty and Robyn about conquering risks through tactical investing, the need for creative multimedia in finance, and insights on the future of the industry"True tactical investing is all about approaching it with a risk mindset. Having the comfort level to exit positions, go to cash, raise cash when you need to be, but then also get back into the market when your signals turn." ~ @ManishKhattaMain Takeaways  Buy high and sell higher, whatever the asset class. For quantitative investors, their strategy only involves looking at the price without external factors such as climate change, earnings, etc. Conquering risk is all about avoiding the maximum drawdown. Clients must be educated about it so they can tolerate loss and comfortably go through it in the future. There are two types of tactical investing: constrained and unconstrained. Constrained only deals with minor adjustments, while unconstrained is freer, without any limitations. Giving easy access to updates and innovation about your company and the industry, in general, is helpful for retaining clients. Clients want honest, raw, and open truth about the investment process. Links Manish Khatta on Twitter Manish Khatta on LinkedIn Mike Tyson Entrance vs. Botha (DMX - Intro) Potomac Fund Management, Inc. Conquer Risk Podcast on YouTube Bitcoin Gary Vaynerchuk ARK Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2297-OAS-8/16/2021

In today’s episode, Rusty talks with Aaron Scully, Portfolio Manager on the Global Sustainable Equity Team at Janus Henderson Investors.Aaron has been with Janus Henderson Investors for more than two decades. Since the beginning, he has helped with implementing the best investment strategies to move sustainability forward. When not at his desk, Aaron enjoys climbing Colorado's 14ers. As a person who grew up in the Midwest, he remembers falling in love with Colorado's scenic environment. The great career development opportunities it offered were just a bonus.Aaron and Rusty discuss the impact of sustainable investing in our future, different sustainable investing themes, and the effect of sustainable investing on portfolio performance."Investing is something you do that seems like a small decision. But it can have a profound impact on society and the environment, depending on how you invest." ~ Aaron ScullyMain Takeaways  Companies that have a product or service that is helping the world are eligible for sustainable investing. Conversely, it must not have any product or service that is detrimental to society. Sustainability drives high performance. Companies that address huge societal problems can ensure longevity in the industry and attract greater human capital.  The environmental and societal involvement of companies are great indicators in the future of sustainable investing.  Portfolio managers focus on three things when they implement sustainable investing: exclusionary criteria, ESG (environmental, social, and governance) issues tackled, and engagement. The future is now in sustainable investing. Begin a socially responsible investing journey. More and more companies are allocating their resources to drive sustainability.  Links Aaron Scully on LinkedIn Janus Henderson Investors Golden by Harry Styles United Nations Brundtland Commission ESG assets may hit $53 trillion by 2025, a third of global AUM | Bloomberg The Omnivore’s Dilemma: A Natural History of Four Meals by Michael Pollan Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2149-OAS-7/28/2021

In today’s episode, Rusty and Robyn talk to Vance Howard, CEO and Portfolio Manager of Howard Capital Management.Vance's professional money management career started in 1992 when he founded Chartered Financial Services, Inc. Before founding Howard Capital Management, Vance was also elected four times to Huntsville, Texas City Council and twice as mayor pro tem. His expertise lies in the implementation of various trading systems.Vance talks with Rusty and Robyn about the difference between tactical investing and defensive investing, using trend indicators to quantify risk, and the overall benefits of the mathematical quantitative approach."By having that mathematical mechanism that we've built and that we trade-off of, it took all that emotion out of the equation. You did what the market was doing. The market had turned, the market was going up. And if it didn't go up, the byline would have kicked us back out anyway." ~ Vance HowardMain Takeaways  Stop guessing and rely on non-emotional mechanical methodologies and mathematical models when investing. Tactical investing and defensive investing strategies can create great results when they go hand in hand. Know how to tread lightly in a bad market. To quantify risk, learn to look at indicators. It does not matter what you own, you just have to know what the market’s direction is. A great money manager and investor knows how to sit through uncomfortable situations and believes in the benefits of the mathematical quantitative approach. Links Vance Howard on LinkedIn Howard Capital Management 401k Optimizer Born in America Bear Stearns Collapse John Bogle CNBC Wealth Watch Newsletter Bar C Ranch Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2110-OAS-7/26/2021

In today’s episode, Rusty and Robyn talk with Harin de Silva, Portfolio Manager for the Analytics Investors Group at Wells Fargo Asset Management.Harin's focus as a portfolio manager is on equities and factor-based asset allocation strategies. He is also regarded as one of the top quantitative managers in the US and has received the prestigious Graham and Dodd Award of Excellence for his research. Before joining Wells Fargo, Harin also provided economic research services to investors through the Analysis Group, Inc.Harin talks with Rusty and Robyn about factor-based investing, long/short funds, perspectives on risk analysis, and incorporating big data in investing."Our role as quantitative investors is to take what people are doing from a fundamental standpoint and then apply that systematically across a wide range of stocks. And technology is what allows us to do that." ~ Harin de SilvaMain Takeaways  In factor-based investing, investors can easily understand performance and the common themes in structuring portfolios. Quantitative investing is systematic investing. Quantitative investors don’t just acquire the relevant data; they decide and assign the weight of the factors that affect the structure of the portfolio. Coming up with an idea is just the first step. Using technology to transform big data into useful information is also critical, especially in improving investment strategies. In analyzing the performance, volatilities, and drawdowns of funds, consider looking at risk adjustment metrics like the Sortino ratio and the VIX index. Lower volatility stocks tend to outperform higher volatility stocks because of two key things: human behavior and volatility drag. Links Harindra (Harin) de Silva on LinkedIn Tubular Bells by Michael Oldfield Wells Fargo Asset Management 361 Global Long/Short Equity Fund A.W. Jones Security Analysis by Benjamin Graham and David Dodd Twitter Facebook Myron Scholes Cboe VIX Index Sortino Ratio Robinhood Warren Buffett Noise: A Flaw in Human Judgment by Daniel Kahneman Think Again by Adam Grant Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2041-OAS-7/19/2021

In today’s episode, Rusty and Robyn talk to Grant Engelbart, Senior Portfolio Manager at Brinker Capital.Grant has been in the industry for more than a decade. His focus is on trading and managing assets, including ETF mutual funds and single securities. Before working as a portfolio manager, Grant was part of the trading and investment research team at Orion Advisor Solutions.Grant talks with Rusty and Robyn about ETF investment strategies, crypto as a new alternative asset class, and the non-financial skills needed in finance."One of the biggest issues we have in the advisor and investor world today is income generation. With cryptocurrencies, if done the right way, you can create pretty substantial income streams and uncorrelated income streams off of these products." ~ Grant EngelbartMain Takeaways  When choosing an ETF, the first step is to know the exposure you’ll gain from it. Other factors to consider are ETF concentration, maximum security weight, index ETF, and consistent growth. Crypto can be a new alternative asset class. The possibilities with crypto are endless, especially with the creation of crypto ETFs and the growth of decentralized finance (DeFi). Getting familiarized with programming languages, improving your writing, and maintaining positive client relationships are non-financial skills needed in finance. Be disciplined and recognize the power of staying in the market long-term. Having a consistent yet adaptable process that is aligned with the client’s investment beliefs is important. Links Grant Engelbart on LinkedIn Sirius by The Alan Parsons Project Brinker Capital Brinker Capital on Twitter CLS Investments Chartered Alternative Investment Analyst Association (CAIA) Index Methodology Morningstar ETFs Davis ETFs JP Morgan US Value Funds Simplify ETFs Matt Hogan Dave Abner Python R Animal Spirits Podcast Corey Hoffstein’s Liquidity Cascades: The Coordinated Risk of Uncoordinated Market Participants Flirting With Models Podcast Upside-Down Markets: Profits, Inflation, and Equity Valuation in Fiscal Policy Regimes By Jesse Livermore+ | O’Shaughnessy Asset Management Long Vol: It’s Always Different by Dave Nadig ETF Trends - ETF Strategist Channel - Brinker Capital Nebraska Huskers Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2011-OAS-7/13/2021

In today’s episode, Rusty and Robyn talk to Skip Schweiss, President of the Financial Planning Association (FPA).Skip has long been passionate about educating financial planners on how they can increase the value they provide to consumers. Before FPA, Skip oversaw TD Ameritrade’s retirement plan services business and public policy advocacy efforts among others. When not in his office, he's hiking somewhere in Colorado.Skip talks with Rusty and Robyn about the merits of a CFP credential, the importance of personal finance education, and the impact of recent legislative developments and emerging secular trends on the financial planning industry."My philosophy is maximum consumer protections, consistent with a reasonable regulatory level of regulatory burden on the providers. If you burden the providers so heavily that they can't even provide the services, you haven't done consumers any good. So, you've got to balance those out." ~ Skip SchweissMain Takeaways  Being CFP-certified is one way to increase your credibility and easily gain trust from clients. The profession of financial planning is embedded in the CFP designation. Promoting consumer protection and minimizing regulatory burdens for financial advisors can go hand in hand. It’s good to have balance in the industry. There’s a secular trend in the finance industry where advisors are going from being commission-based to fee-based. Conflict of interests can still arise in both approaches so it’s important to remember that financial planning should not be focused on the money, but on how you can help clients. Urge young people to dive into programs that involve financial planning. The industry can be lucrative since there are a variety of career paths to follow. Links Skip Schweiss on LinkedIn Something for Nothing by Rush Financial Planning Association (FPA) Certified Financial Planner (CFP) Credential Accredited Investment Fiduciary (AIF) Credential Fiduciary of the Year TD Ameritrade Natixis Investor Survey – individual investors expecting 17.5% returns after inflation Chip and Skip’s Excellent Adventure Four Pass Loop Colorado Klement on Investing Financial Literacy and Planning: How financial planning adds 2-3x more wealth by retirement by Lusardi and Mitchell Triumph of the Optimists by Dimson, Marsh, and Staunton Credit Suisse Global Investment Returns Yearbook 2021 Michael Kitces Bob Veres FINRA Bernie Madoff Mary Schapiro Dodd-Frank Act SECURE Act of 2019 Tax Cuts and Jobs Act of 2017 SEC Regulation Best Interest DOL Conflict of Interest Rule Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2002-OAS-7/13/2021

In today’s episode, Rusty and Robyn talk to Scott Helfstein, Executive Director of Thematic Investing at ProShares.Scott's military background and investing expertise paved the way for understanding the complexity of decision-making and resource allocation for individuals, especially in times of uncertainty. Recently, his focus has been on helping people build thematic portfolios that can boost long-term returns. Together with Proshares, Scott brings cutting-edge innovation to the ETF space.Scott talks with Rusty and Robyn about the benefits of thematic investing, the positioning of thematic funds in portfolios, and the four themes to look out for when investing in the long-term.Themes give people things they experience in the everyday world that they associate with. And I think that's really what's driven the growth. That’s part one. Part two is that most of the themes that are put out in the market are future-forward." ~ Scott HelfsteinMain Takeaways  There are three selling points of thematic investing: secular changes to the global economy, long-term trends, and high-growth opportunities.  Rather than anticipate linearly, learn to see the exponential changes—especially with regard to the four long-term themes: work, genomics & telehealth, digital consumer, and food revolution. You can allocate 5-10% of your portfolio in thematic ETFs. However, do the basket approach first and weigh meticulously what would be an immense player in the long-term. Whatever ETF you put out, make sure that you’re bringing in something new at the table—innovate. Links Scott Helfstein on LinkedIn Right Now by Van Halen Riding with the King by B.B. King and Eric Clapton ProShares ETFs Morgan Stanley George Washington University US Military Academy Center for Cyber and Homeland Security - Auburn University Federal Reserve Barron’s Wall Street Journal Russell 1000 Index S&P 500 Moderna US Food and Drug Administration (FDA) Zoom Pet Care ETF ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA) Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 1941-OAS-7/1/2021