All-In on the S&P 500 Worked for 18 Years | Jared Dillian on Why It's Still Wrong

<p>Jared Dillian joins Matt Zeigler to discuss The Awesome Portfolio, his approach to asset allocation built around 20% each in stocks, bonds, gold, cash, and real estate. They explore how diversification, annual rebalancing, and managing volatility can help investors reduce financial stress and build a portfolio they can stick with through bear markets.</p><p>Jared explains his "life hedge" concept, challenges conventional wisdom about stock market drawdowns, and shares how losing half his net worth during the financial crisis shaped his investing philosophy.</p><p>Buy The Awesome Portfolio Book<br /><a href="https://amzn.to/3Tf3of7" rel="ugc noopener noreferrer" target="_blank">https://amzn.to/3Tf3of7</a></p><p>Topics covered:</p><ul><li><p>Why Jared questions putting your entire life savings in the S&amp;P 500</p></li><li><p>How the Awesome Portfolio differs from Harry Browne's Permanent Portfolio</p></li><li><p>Including home equity when measuring your overall asset allocation</p></li><li><p>Why volatility and frequent portfolio checking can lead to costly decisions</p></li><li><p>The life hedge: protecting against your job and investments declining together</p></li><li><p>Why Jared disagrees with Charlie Munger about tolerating large drawdowns</p></li><li><p>Index concentration, changing correlations, and the limits of diversification</p></li><li><p>The portfolio's historical backtests, including its losses in 2008 and 2022</p></li><li><p>Annual rebalancing, cash reserves, inflation protection, and cryptocurrency</p></li><li><p>Managing FOMO and taking practical steps toward a less stressful retirement portfolio</p></li></ul><p>Timestamps:</p><p>00:00 Jared Dillian's case against an all-stock portfolio<br />06:33 The five equal allocations in the Awesome Portfolio<br />11:07 Why "never sell" can become a behavioral trap<br />15:26 The life hedge: when your paycheck and portfolio fall together<br />20:38 Risk-adjusted returns and S&amp;P 500 concentration<br />24:49 Why rising interest rates hurt diversification in 2022<br />28:51 Backtested losses in 2008 and 2022<br />34:26 Combining home equity, retirement accounts, and savings<br />38:58 Cryptocurrency, portfolio distractions, and FOMO<br />44:31 The Death of Equities and lessons from past crashes<br />48:44 How diversification could have changed Jared's financial crisis<br />53:41 First steps toward reducing portfolio risk before retirement</p><p>Learn more about the Excess Returns podcast network:</p><p><a href="https://excessreturns.co/" rel="ugc noopener noreferrer" target="_blank">https://excessreturns.co</a></p><p>No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.</p><p></p>