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Investment Strategies for Balancing Risk and Return in an Unpredictable Market · Views from 6,230

• 0:01
  Welcome
• 0:02
  to
• 0:02
  the
• 0:02
  Adjusted
• 0:03
  for
• 0:03
  Risk
• 0:03
  Podcast.
• 0:04
  Join
• 0:05
  myself,
• 0:06
  Brian
• 0:06
  Nauman
• 0:07
  as
• 0:07
  I
• 0:07
  talk
• 0:07
  market
• 0:08
  investment
• 0:09
  economic.
• 0:09
  Let's
• 0:09
  get
• 0:09
  started
• 0:10
  in
• 0:10
  life,
• 0:11
  as
• 0:11
  I
• 0:11
  hope
• 0:11
  prepare
• 0:12
  you
• 0:12
  for
• 0:12
  the
• 0:12
  upcoming
• 0:13
  week
• 0:13
  in
• 0:14
  markets.
• 0:15
  I
• 0:15
  work
• 0:16
  for
• 0:16
  Zephyr
• 0:16
  in
• 0:17
  all
• 0:17
  of
• 0:17
  express
• 0:18
  by
• 0:18
  myself
• 0:19
  in
• 0:19
  my
• 0:20
  podcast,
• 0:20
  guests
• 0:21
  are
• 0:21
  solely
• 0:21
  of
• 0:21
  their
• 0:22
  own
• 0:22
  opinions
• 0:22
  and
• 0:22
  do
• 0:23
  not
• 0:23
  reflect
• 0:23
  the
• 0:24
  opinion
• 0:24
  of
• 0:25
  Zephyr
• 0:26
  or
• 0:26
  Informa.
• 0:27
  Its
• 0:27
  contains
• 0:27
  company.
• 0:28
  This
• 0:29
  podcast
• 0:30
  is
• 0:30
  for
• 0:30
  information
• 0:31
  purposes
• 0:32
  only
• 0:32
  and
• 0:32
  should
• 0:32
  not
• 0:33
  be
• 0:33
  relied
• 0:33
  on
• 0:34
  for
• 0:34
  investment
• 0:35
  decisions.
• 0:36
  Welcome
• 0:37
  everyone
• 0:37
  to
• 0:37
  zephyr's
• 0:38
  Adjusted
• 0:38
  for
• 0:38
  Risk
• 0:39
  podcast.
• 0:39
  We
• 0:40
  are
• 0:40
  recording
• 0:41
  on
• 0:41
  location
• 0:42
  at
• 0:42
  the
• 0:42
  Exchange
• 0:43
  ETF
• 0:43
  conference
• 0:44
  in
• 0:44
  Las
• 0:45
  Vegas,
• 0:46
  which
• 0:46
  is
• 0:46
  a
• 0:46
  little
• 0:47
  bit
• 0:47
  different
• 0:47
  than
• 0:47
  being
• 0:48
  in,
• 0:48
  uh,
• 0:48
  in
• 0:48
  Lake
• 0:49
  Tahoe,
• 0:49
  but
• 0:50
  it'll
• 0:50
  take
• 0:50
  it.
• 0:50
  The
• 0:50
  weather
• 0:50
  is
• 0:51
  nice.
• 0:51
  Weather
• 0:51
  is
• 0:52
  nice,
• 0:52
  so.
• 0:52
  You
• 0:53
  know,
• 0:53
  equities
• 0:53
  have
• 0:54
  had
• 0:54
  a
• 0:54
  great
• 0:55
  three
• 0:55
  year
• 0:55
  run.
• 0:56
  In
• 0:56
  fact,
• 0:57
  it's
• 0:57
  been
• 0:58
  a
• 0:58
  while
• 0:58
  since
• 0:58
  we've
• 0:59
  had
• 0:59
  three
• 0:59
  years
• 1:00
  of
• 1:00
  double
• 1:00
  digit
• 1:01
  growth.
• 1:03
  But
• 1:04
  at
• 1:04
  some
• 1:04
  point,
• 1:05
  you
• 1:05
  know,
• 1:05
  we've
• 1:05
  gotta
• 1:06
  be
• 1:06
  prepared
• 1:06
  for
• 1:06
  risk
• 1:07
  and
• 1:07
  a
• 1:07
  potential
• 1:07
  sell
• 1:08
  off.
• 1:08
  Well,
• 1:09
  I
• 1:09
  have
• 1:09
  on
• 1:10
  the
• 1:10
  perfect
• 1:10
  guess
• 1:11
  to
• 1:11
  talk
• 1:11
  all
• 1:11
  things
• 1:13
  about
• 1:14
  what
• 1:14
  this,
• 1:14
  um,
• 1:16
  great
• 1:16
  runup
• 1:17
  in
• 1:17
  equities
• 1:17
  means
• 1:18
  for
• 1:18
  investors
• 1:19
  and
• 1:19
  the
• 1:19
  potential
• 1:20
  risks
• 1:21
  moving
• 1:21
  forward.
• 1:22
  But
• 1:23
  first,
• 1:23
  this
• 1:23
  episode
• 1:24
  is
• 1:24
  sponsored
• 1:24
  by
• 1:24
  the
• 1:25
  award-winning
• 1:25
  Zephyr,
• 1:26
  which
• 1:26
  helps
• 1:26
  investment
• 1:27
  professionals
• 1:28
  make
• 1:28
  more
• 1:29
  informed
• 1:29
  investment
• 1:30
  decisions
• 1:30
  on
• 1:31
  behalf
• 1:31
  of
• 1:31
  their
• 1:31
  clients.
• 1:33
  I'd
• 1:33
  like
• 1:33
  to
• 1:33
  give
• 1:34
  a
• 1:34
  very
• 1:34
  warm
• 1:35
  welcome
• 1:35
  to
• 1:35
  David
• 1:36
  Nicholas.
• 1:37
  David
• 1:37
  is
• 1:38
  the
• 1:38
  founder
• 1:39
  and
• 1:39
  CEO
• 1:40
  of
• 1:40
  X
• 1:40
  funds.
• 1:41
  David.
• 1:42
  Thank
• 1:42
  you
• 1:42
  so
• 1:43
  much
• 1:43
  for
• 1:43
  coming
• 1:43
  on
• 1:43
  the
• 1:43
  show.
• 1:44
  It's
• 1:44
  an
• 1:44
  honor.
• 1:45
  Really
• 1:45
  excited
• 1:45
  about
• 1:45
  this
• 1:46
  conversation.
• 1:47
  Can
• 1:47
  you
• 1:47
  please
• 1:47
  tell
• 1:47
  us
• 1:47
  a
• 1:47
  little
• 1:48
  bit
• 1:48
  more
• 1:48
  about
• 1:48
  yourself
• 1:48
  and
• 1:49
  ex
• 1:49
  funds?
• 1:50
  Yeah,
• 1:50
  well,
• 1:50
  grateful
• 1:50
  to
• 1:50
  be
• 1:51
  here
• 1:51
  and
• 1:51
  then
• 1:51
  it's
• 1:51
  a
• 1:51
  great
• 1:52
  show,
• 1:52
  so
• 1:52
  we're
• 1:52
  just,
• 1:53
  uh,
• 1:53
  happy
• 1:53
  to
• 1:53
  be
• 1:53
  on.
• 1:54
  Yeah,
• 1:54
  so
• 1:54
  I've
• 1:55
  been
• 1:55
  in
• 1:55
  the
• 1:55
  investment
• 1:55
  management
• 1:56
  industry
• 1:56
  now
• 1:56
  for
• 1:56
  over
• 1:57
  two
• 1:57
  decades
• 1:58
  and
• 1:58
  come
• 1:58
  from
• 1:58
  a
• 1:58
  private
• 1:59
  wealth
• 1:59
  background
• 2:00
  and
• 2:00
  you
• 2:00
  know,
• 2:00
  for
• 2:01
  the
• 2:01
  last
• 2:01
  20
• 2:01
  years
• 2:01
  we've
• 2:01
  helped
• 2:02
  really
• 2:02
  investors,
• 2:03
  uh,
• 2:03
  not
• 2:03
  only
• 2:03
  just
• 2:04
  build
• 2:04
  their
• 2:04
  wealth,
• 2:05
  but
• 2:05
  also
• 2:05
  protect
• 2:06
  it,
• 2:06
  uh,
• 2:07
  generate
• 2:07
  income
• 2:07
  off
• 2:08
  of
• 2:08
  it.
• 2:08
  And
• 2:08
  so.
• 2:09
  It's
• 2:09
  really
• 2:09
  been
• 2:09
  an
• 2:09
  amazing,
• 2:10
  uh,
• 2:10
  stretch
• 2:11
  so
• 2:11
  far,
• 2:11
  but
• 2:11
  also
• 2:12
  I
• 2:12
  think
• 2:12
  that
• 2:13
  career
• 2:13
  has
• 2:13
  really
• 2:13
  led
• 2:14
  into
• 2:14
  the
• 2:14
  ETF
• 2:15
  world.
• 2:15
  We've
• 2:15
  been
• 2:15
  able
• 2:16
  to
• 2:16
  bring
• 2:16
  those
• 2:16
  strategies.
• 2:17
  Into
• 2:18
  an
• 2:18
  ETF
• 2:18
  wrapper.
• 2:18
  So
• 2:19
  just
• 2:19
  really
• 2:19
  excited
• 2:20
  about
• 2:20
  it
• 2:20
  and
• 2:20
  it's
• 2:20
  been
• 2:20
  a
• 2:20
  really,
• 2:21
  uh,
• 2:21
  fun
• 2:22
  market.
• 2:22
  We've
• 2:22
  had
• 2:22
  a
• 2:22
  lot
• 2:22
  of
• 2:23
  different
• 2:23
  market
• 2:23
  events
• 2:23
  over
• 2:23
  the
• 2:23
  last
• 2:23
  20
• 2:24
  years,
• 2:24
  but
• 2:24
  uh,
• 2:25
  it's
• 2:25
  been
• 2:25
  good
• 2:25
  to
• 2:25
  get
• 2:26
  through
• 2:26
  all
• 2:26
  those
• 2:26
  and
• 2:26
  also
• 2:27
  be
• 2:27
  able
• 2:27
  to
• 2:27
  put
• 2:27
  great
• 2:27
  products
• 2:28
  out.
• 2:28
  Yeah.
• 2:28
  Why
• 2:28
  did
• 2:29
  you
• 2:29
  decide
• 2:29
  to
• 2:30
  just
• 2:30
  go
• 2:31
  in
• 2:31
  the
• 2:31
  ETF
• 2:31
  world,
• 2:32
  you
• 2:32
  know.
• 2:32
  Successful
• 2:33
  wealth
• 2:33
  management
• 2:34
  practice.
• 2:34
  What
• 2:34
  was
• 2:35
  it?
• 2:35
  Just
• 2:36
  over
• 2:36
  dinner
• 2:37
  on
• 2:37
  a,
• 2:37
  you
• 2:37
  were
• 2:38
  like,
• 2:38
  let,
• 2:38
  let's
• 2:39
  do
• 2:39
  ETFs.
• 2:40
  Yeah.
• 2:40
  You
• 2:40
  know,
• 2:40
  I
• 2:40
  know.
• 2:41
  'cause
• 2:41
  this
• 2:41
  is
• 2:41
  a,
• 2:41
  it's
• 2:41
  a
• 2:41
  tough
• 2:42
  business.
• 2:42
  I
• 2:42
  mean,
• 2:42
  yeah.
• 2:42
  Very
• 2:43
  competitive.
• 2:43
  It's
• 2:44
  very
• 2:44
  competitive.
• 2:45
  And
• 2:45
  look,
• 2:45
  we,
• 2:45
  we
• 2:45
  don't
• 2:45
  have
• 2:45
  economies
• 2:46
  of
• 2:46
  scale
• 2:46
  like
• 2:47
  a
• 2:47
  BlackRock
• 2:47
  or
• 2:48
  an
• 2:48
  Invesco,
• 2:48
  so
• 2:49
  it's
• 2:49
  a
• 2:49
  lot
• 2:49
  of
• 2:49
  risk.
• 2:49
  We
• 2:49
  put
• 2:50
  out
• 2:50
  a
• 2:50
  product,
• 2:50
  it
• 2:50
  doesn't
• 2:50
  work,
• 2:50
  but
• 2:51
  just
• 2:51
  really
• 2:51
  it
• 2:51
  was,
• 2:51
  it
• 2:52
  was
• 2:52
  when
• 2:52
  the
• 2:52
  interest
• 2:52
  rates
• 2:52
  were
• 2:52
  very
• 2:53
  low.
• 2:53
  And
• 2:54
  then
• 2:54
  if
• 2:54
  you
• 2:54
  remember
• 2:54
  right
• 2:55
  after
• 2:55
  COVID
• 2:55
  2021,
• 2:56
  interest
• 2:56
  rates
• 2:56
  started
• 2:57
  to
• 2:57
  head
• 2:57
  back
• 2:57
  up
• 2:57
  pretty,
• 2:58
  pretty,
• 2:58
  uh,
• 2:58
  significantly.
• 2:59
  We
• 3:00
  had
• 3:00
  clients
• 3:00
  ask
• 3:00
  us
• 3:00
  about
• 3:01
  treasury.
• 3:02
  And
• 3:02
  so
• 3:02
  all
• 3:02
  of
• 3:02
  a
• 3:03
  sudden,
• 3:03
  treasuries
• 3:03
  were
• 3:03
  now
• 3:03
  this
• 3:04
  really
• 3:04
  exciting
• 3:05
  asset
• 3:05
  class.
• 3:05
  'cause
• 3:05
  you
• 3:06
  could
• 3:06
  get
• 3:06
  5%
• 3:07
  on
• 3:07
  a
• 3:07
  treasury,
• 3:07
  right?
• 3:07
  When
• 3:08
  you
• 3:08
  couldn't
• 3:08
  for
• 3:08
  years.
• 3:08
  For
• 3:08
  the
• 3:08
  first
• 3:09
  time
• 3:09
  in
• 3:09
  years.
• 3:09
  Yeah.
• 3:09
  For
• 3:09
  years.
• 3:10
  Yeah.
• 3:10
  And
• 3:10
  so,
• 3:11
  uh,
• 3:11
  clients
• 3:11
  were
• 3:11
  asking
• 3:12
  for
• 3:12
  us,
• 3:12
  we
• 3:12
  were,
• 3:12
  as
• 3:13
  a
• 3:13
  private
• 3:13
  manager,
• 3:13
  we
• 3:14
  would
• 3:14
  add
• 3:14
  a
• 3:14
  management
• 3:15
  fee
• 3:15
  of
• 3:15
  1%
• 3:16
  on
• 3:16
  top
• 3:16
  of
• 3:16
  it.
• 3:16
  Well,
• 3:16
  that
• 3:16
  four
• 3:17
  now
• 3:17
  became
• 3:17
  three.
• 3:18
  It
• 3:19
  really
• 3:19
  just,
• 3:19
  I,
• 3:19
  we
• 3:19
  felt
• 3:20
  bad.
• 3:20
  And
• 3:20
  so
• 3:20
  we
• 3:20
  actually,
• 3:21
  our
• 3:21
  first
• 3:21
  ETF
• 3:22
  product
• 3:22
  was
• 3:22
  a
• 3:22
  fixed
• 3:22
  income
• 3:23
  product,
• 3:23
  a
• 3:23
  treasury
• 3:23
  product.
• 3:24
  That
• 3:24
  added
• 3:25
  an
• 3:25
  option
• 3:25
  to
• 3:25
  overlay,
• 3:26
  and
• 3:26
  really
• 3:26
  it
• 3:26
  was
• 3:26
  just
• 3:27
  to
• 3:27
  be
• 3:27
  able
• 3:27
  to
• 3:27
  cover
• 3:28
  our
• 3:28
  fee
• 3:29
  with
• 3:29
  generated
• 3:29
  a
• 3:29
  little
• 3:29
  bit
• 3:30
  of
• 3:30
  extra
• 3:30
  premium
• 3:31
  so
• 3:31
  that
• 3:31
  our
• 3:31
  clients
• 3:31
  would
• 3:31
  still
• 3:32
  be
• 3:32
  better
• 3:32
  off
• 3:32
  even
• 3:32
  after
• 3:33
  paying
• 3:33
  our
• 3:33
  advisory
• 3:33
  fee.
• 3:34
  Yeah.
• 3:34
  Interesting.
• 3:35
  I
• 3:35
  love
• 3:35
  it.
• 3:35
  I
• 3:35
  love
• 3:35
  these
• 3:36
  stories
• 3:36
  of
• 3:37
  just
• 3:37
  you,
• 3:38
  you
• 3:38
  kind
• 3:38
  of
• 3:38
  evolve,
• 3:39
  I
• 3:39
  wouldn't
• 3:39
  say
• 3:39
  pivot.
• 3:40
  Sure.
• 3:40
  But
• 3:40
  you,
• 3:41
  uh,
• 3:41
  expand
• 3:42
  and
• 3:42
  evolve
• 3:43
  over
• 3:43
  it.
• 3:43
  That's
• 3:43
  right.
• 3:43
  And
• 3:43
  then
• 3:44
  ETFs
• 3:44
  with
• 3:45
  technology
• 3:45
  now
• 3:46
  it's,
• 3:46
  you
• 3:46
  know,
• 3:47
  it's
• 3:47
  not
• 3:47
  like
• 3:47
  mutual
• 3:48
  funds
• 3:48
  and,
• 3:49
  you
• 3:49
  know,
• 3:49
  some
• 3:49
  other
• 3:49
  products.
• 3:50
  It's
• 3:50
  easier
• 3:50
  to
• 3:51
  to
• 3:51
  launch.
• 3:52
  That's
• 3:52
  right.
• 3:52
  That's
• 3:52
  right.
• 3:53
  Fantastic.
• 3:55
  Do
• 3:55
  you
• 3:55
  think,
• 3:56
  you
• 3:57
  know,
• 3:57
  some
• 3:57
  investors
• 3:58
  focus
• 3:58
  too
• 3:59
  much
• 3:59
  on
• 3:59
  capital
• 4:00
  appreciation.
• 4:00
  I
• 4:00
  mean,
• 4:01
  it's
• 4:01
  easy
• 4:01
  to,
• 4:01
  right?
• 4:02
  We've
• 4:02
  had
• 4:02
  this
• 4:02
  fantastic
• 4:03
  run
• 4:03
  up.
• 4:04
  20%
• 4:04
  returns.
• 4:05
  20%
• 4:05
  returns.
• 4:06
  Yeah.
• 4:07
  So
• 4:08
  do
• 4:08
  you
• 4:08
  think
• 4:08
  it's
• 4:08
  sometimes
• 4:09
  easy,
• 4:10
  you
• 4:10
  know,
• 4:10
  or
• 4:10
  they
• 4:11
  focus
• 4:11
  too
• 4:11
  much
• 4:12
  on
• 4:12
  capital
• 4:12
  appreciation?
• 4:13
  Yeah.
• 4:14
  When
• 4:14
  you
• 4:14
  think
• 4:15
  about
• 4:15
  it
• 4:15
  as
• 4:15
  an
• 4:15
  investor,
• 4:16
  the
• 4:16
  primary
• 4:17
  thing
• 4:17
  that
• 4:17
  we
• 4:17
  focus
• 4:17
  on
• 4:17
  is,
• 4:17
  yeah,
• 4:18
  how
• 4:18
  much
• 4:18
  does
• 4:18
  my
• 4:18
  portfolio
• 4:19
  grow
• 4:19
  grow?
• 4:19
  Its
• 4:20
  capital
• 4:20
  appreciation,
• 4:20
  but,
• 4:21
  but
• 4:21
  I
• 4:21
  would
• 4:21
  say
• 4:21
  that's
• 4:21
  not.
• 4:22
  That's
• 4:22
  not
• 4:22
  the
• 4:22
  only
• 4:22
  thing
• 4:23
  to
• 4:23
  be
• 4:23
  looking
• 4:23
  at.
• 4:24
  And,
• 4:24
  uh,
• 4:24
  you
• 4:25
  know,
• 4:25
  we,
• 4:25
  we've
• 4:25
  had
• 4:25
  an
• 4:25
  amazing
• 4:26
  run
• 4:26
  here
• 4:27
  over
• 4:27
  the
• 4:27
  last
• 4:27
  decade,
• 4:28
  and
• 4:28
  I,
• 4:29
  and
• 4:29
  I
• 4:29
  tell
• 4:29
  investors
• 4:30
  this
• 4:30
  all
• 4:30
  the
• 4:30
  time,
• 4:30
  if
• 4:31
  everything
• 4:31
  in
• 4:31
  your
• 4:31
  portfolio
• 4:32
  is
• 4:32
  doing
• 4:33
  well,
• 4:34
  you
• 4:34
  should
• 4:34
  actually
• 4:34
  be
• 4:34
  concerned.
• 4:35
  Because
• 4:35
  really
• 4:35
  that
• 4:35
  means
• 4:35
  you're
• 4:36
  not,
• 4:36
  you're
• 4:36
  not
• 4:36
  diversified.
• 4:37
  There
• 4:37
  should
• 4:37
  be
• 4:37
  some
• 4:38
  asset
• 4:38
  class
• 4:39
  that
• 4:39
  is
• 4:39
  not
• 4:40
  performing
• 4:40
  well,
• 4:40
  that's
• 4:41
  giving
• 4:41
  you
• 4:41
  a
• 4:41
  balance
• 4:42
  or
• 4:42
  a
• 4:42
  hedge
• 4:43
  to
• 4:43
  your
• 4:43
  long
• 4:43
  only
• 4:44
  investment.
• 4:44
  So
• 4:44
  to
• 4:44
  me,
• 4:44
  true
• 4:45
  diversification
• 4:45
  means,
• 4:45
  yeah,
• 4:46
  parts
• 4:46
  of
• 4:46
  my
• 4:46
  portfolio
• 4:47
  are
• 4:47
  doing
• 4:47
  well,
• 4:47
  but
• 4:47
  I
• 4:47
  also
• 4:47
  have
• 4:48
  this
• 4:48
  bucket
• 4:49
  that's
• 4:49
  really
• 4:49
  there.
• 4:49
  Yeah,
• 4:50
  it
• 4:50
  may
• 4:50
  be
• 4:50
  underperforming
• 4:51
  this
• 4:51
  year.
• 4:52
  But
• 4:52
  when
• 4:52
  things
• 4:52
  turn
• 4:53
  or
• 4:53
  we
• 4:53
  have
• 4:53
  a
• 4:53
  sell
• 4:53
  off,
• 4:54
  you
• 4:54
  want
• 4:54
  that
• 4:54
  part
• 4:55
  of
• 4:55
  your
• 4:55
  portfolio
• 4:55
  to
• 4:55
  be
• 4:55
  able
• 4:56
  to
• 4:56
  give
• 4:56
  you
• 4:56
  a
• 4:56
  nice
• 4:56
  offset
• 4:57
  due
• 4:57
  to
• 4:57
  long
• 4:57
  only
• 4:58
  equities.
• 4:59
  David,
• 4:59
  I
• 4:59
  love
• 4:59
  that.
• 5:00
  I
• 5:01
  have
• 5:01
  a
• 5:01
  lot
• 5:02
  of
• 5:02
  conversation.
• 5:03
  Finally,
• 5:03
  diversification's
• 5:04
  worked,
• 5:05
  you
• 5:05
  know,
• 5:05
  after
• 5:05
  years
• 5:06
  of
• 5:06
  just
• 5:07
  US
• 5:07
  supremacy,
• 5:08
  right?
• 5:09
  And
• 5:09
  now
• 5:09
  it's
• 5:09
  working,
• 5:10
  and
• 5:11
  I've
• 5:11
  had
• 5:11
  more
• 5:11
  and
• 5:11
  more
• 5:11
  people
• 5:12
  talk
• 5:12
  about
• 5:12
  exactly
• 5:13
  what
• 5:13
  you
• 5:13
  just
• 5:14
  said,
• 5:14
  David,
• 5:14
  like
• 5:15
  if
• 5:15
  everything's
• 5:16
  working.
• 5:16
  Something's
• 5:17
  not
• 5:17
  working.
• 5:17
  Diversification's
• 5:18
  not
• 5:19
  working,
• 5:19
  right?
• 5:19
  That's
• 5:19
  right,
• 5:19
  that's
• 5:20
  right.
• 5:20
  Um,
• 5:20
  I
• 5:20
  think
• 5:21
  that's
• 5:21
  a
• 5:21
  great,
• 5:22
  great
• 5:22
  way
• 5:22
  of
• 5:22
  putting
• 5:23
  it.
• 5:23
  Um,
• 5:24
  so
• 5:24
  fantastic.
• 5:25
  What,
• 5:27
  uh,
• 5:28
  so
• 5:28
  if
• 5:29
  they're
• 5:29
  putting
• 5:29
  too
• 5:29
  much
• 5:30
  emphasis,
• 5:31
  maybe
• 5:31
  on
• 5:31
  capital
• 5:32
  appreciation,
• 5:32
  but
• 5:33
  why
• 5:33
  not?
• 5:33
  Because
• 5:34
  like
• 5:34
  you
• 5:34
  said,
• 5:35
  markets
• 5:35
  have
• 5:35
  had
• 5:35
  a
• 5:35
  great
• 5:36
  run.
• 5:36
  We
• 5:36
  were
• 5:36
  up
• 5:37
  20%.
• 5:38
  Why
• 5:38
  not?
• 5:39
  Put
• 5:39
  a
• 5:39
  big
• 5:40
  emphasis
• 5:40
  on
• 5:41
  capital
• 5:41
  appreciation
• 5:42
  when
• 5:42
  it's
• 5:43
  worked.
• 5:43
  Yeah,
• 5:43
  that's
• 5:44
  right.
• 5:44
  David,
• 5:44
  you're
• 5:44
  asking
• 5:45
  a
• 5:45
  lot
• 5:45
  from
• 5:45
  investors.
• 5:46
  2025
• 5:47
  I
• 5:47
  think
• 5:47
  was
• 5:47
  a
• 5:47
  really
• 5:47
  good
• 5:47
  reset
• 5:48
  year
• 5:49
  for
• 5:49
  diversification
• 5:50
  to
• 5:50
  say,
• 5:50
  wait,
• 5:50
  you
• 5:50
  know
• 5:51
  what?
• 5:51
  Yeah,
• 5:51
  you're
• 5:52
  right.
• 5:52
  Uh,
• 5:53
  mag
• 5:53
  large
• 5:54
  Cap
• 5:54
  Tech
• 5:54
  has
• 5:54
  done
• 5:54
  very
• 5:55
  well
• 5:55
  over
• 5:55
  the
• 5:55
  last
• 5:55
  decade,
• 5:56
  but
• 5:57
  if
• 5:57
  we
• 5:57
  wanna
• 5:57
  win
• 5:57
  long
• 5:58
  term,
• 5:58
  I
• 5:58
  think
• 5:58
  it
• 5:58
  really
• 5:59
  is
• 5:59
  important
• 5:59
  to
• 5:59
  broaden
• 6:00
  out
• 6:00
  the
• 6:00
  portfolio
• 6:01
  and
• 6:01
  I,
• 6:01
  and
• 6:01
  I
• 6:02
  think
• 6:02
  you
• 6:02
  don't
• 6:02
  give
• 6:02
  up
• 6:03
  on
• 6:03
  what's
• 6:03
  worked.
• 6:04
  But
• 6:04
  I
• 6:04
  think
• 6:04
  if
• 6:04
  you're
• 6:04
  a
• 6:04
  prudent
• 6:05
  investor,
• 6:05
  you're,
• 6:05
  you're
• 6:05
  gonna
• 6:05
  add
• 6:06
  metals
• 6:06
  as
• 6:06
  an
• 6:07
  asset
• 6:07
  class,
• 6:07
  you're
• 6:07
  gonna
• 6:07
  look
• 6:08
  at
• 6:08
  crypto
• 6:08
  as
• 6:08
  an
• 6:08
  asset
• 6:09
  class.
• 6:09
  You
• 6:09
  know,
• 6:10
  I,
• 6:10
  we
• 6:10
  like
• 6:10
  nuclear
• 6:11
  defense
• 6:11
  as
• 6:12
  an
• 6:12
  asset
• 6:12
  class.
• 6:12
  So
• 6:12
  I
• 6:12
  think
• 6:13
  the
• 6:13
  timing
• 6:13
  is
• 6:14
  right
• 6:14
  to
• 6:14
  broaden
• 6:14
  out
• 6:14
  a
• 6:15
  portfolio
• 6:16
  because
• 6:16
  growth
• 6:16
  matters,
• 6:17
  but
• 6:17
  also
• 6:17
  risk
• 6:18
  and
• 6:18
  draw
• 6:18
  down
• 6:18
  are
• 6:18
  important
• 6:19
  if
• 6:19
  you
• 6:19
  wanna
• 6:19
  be
• 6:19
  able
• 6:19
  to
• 6:19
  win
• 6:20
  long
• 6:20
  term.
• 6:21
  You
• 6:21
  know,
• 6:21
  and
• 6:21
  David,
• 6:22
  I'm
• 6:22
  really
• 6:22
  glad
• 6:22
  you're
• 6:23
  brought
• 6:23
  up
• 6:23
  risk
• 6:24
  and
• 6:24
  drawdowns.
• 6:25
  I,
• 6:26
  when
• 6:26
  I
• 6:26
  started
• 6:27
  in
• 6:27
  the
• 6:27
  industry
• 6:27
  20
• 6:28
  years
• 6:28
  ago,
• 6:28
  aging
• 6:29
  myself,
• 6:29
  it
• 6:29
  was
• 6:29
  all
• 6:29
  about
• 6:29
  standard
• 6:30
  deviation,
• 6:31
  volatility
• 6:32
  that
• 6:32
  was.
• 6:32
  The
• 6:33
  risk.
• 6:33
  That's
• 6:33
  what
• 6:34
  everyone
• 6:34
  measured.
• 6:35
  Now
• 6:35
  I
• 6:36
  hear
• 6:36
  more
• 6:36
  and
• 6:36
  more,
• 6:37
  and
• 6:37
  you
• 6:37
  just
• 6:37
  said
• 6:37
  it,
• 6:37
  draw
• 6:38
  down
• 6:38
  risk.
• 6:38
  To
• 6:38
  me
• 6:39
  that
• 6:40
  is
• 6:40
  like
• 6:41
  the
• 6:41
  primary
• 6:41
  risk
• 6:42
  to
• 6:42
  me
• 6:43
  investing,
• 6:43
  losing
• 6:43
  my
• 6:44
  money.
• 6:44
  Give
• 6:44
  me
• 6:45
  all
• 6:45
  the
• 6:45
  upside
• 6:46
  investment.
• 6:46
  Your
• 6:46
  risk
• 6:47
  you
• 6:47
  want.
• 6:47
  That's
• 6:48
  right.
• 6:48
  Bring
• 6:48
  it.
• 6:49
  Yeah.
• 6:49
  But
• 6:50
  is
• 6:50
  that
• 6:50
  draw
• 6:50
  down
• 6:51
  risk?
• 6:51
  So
• 6:52
  do
• 6:52
  you
• 6:52
  think
• 6:52
  investors,
• 6:53
  after
• 6:53
  having
• 6:53
  this
• 6:53
  great
• 6:54
  run,
• 6:54
  just
• 6:54
  forget
• 6:54
  about
• 6:55
  at
• 6:55
  risk
• 6:55
  sometimes
• 6:56
  and
• 6:56
  be
• 6:56
  like,
• 6:57
  equities
• 6:57
  just
• 6:58
  go
• 6:58
  up.
• 6:58
  Yeah.
• 6:59
  Yeah.
• 7:00
  So
• 7:00
  when
• 7:00
  you
• 7:01
  think
• 7:01
  of,
• 7:01
  and
• 7:01
  I
• 7:01
  think
• 7:01
  this
• 7:02
  is
• 7:02
  a
• 7:02
  great
• 7:02
  discussion
• 7:02
  about
• 7:03
  diversification,
• 7:04
  but
• 7:04
  when
• 7:04
  you
• 7:04
  think
• 7:04
  about
• 7:04
  draw
• 7:05
  down,
• 7:05
  I
• 7:05
  always
• 7:05
  say
• 7:06
  if
• 7:06
  all
• 7:06
  of
• 7:07
  the
• 7:07
  assets
• 7:07
  in
• 7:07
  your
• 7:07
  portfolio,
• 7:08
  you
• 7:08
  may
• 7:08
  have
• 7:08
  a
• 7:08
  hundred
• 7:09
  different
• 7:09
  positions,
• 7:10
  but
• 7:10
  if
• 7:10
  they
• 7:10
  all
• 7:11
  are
• 7:11
  going
• 7:11
  down
• 7:11
  at
• 7:11
  the
• 7:11
  same
• 7:12
  time,
• 7:13
  then
• 7:13
  that
• 7:13
  means
• 7:13
  your
• 7:13
  correlation
• 7:14
  is
• 7:14
  off
• 7:14
  in
• 7:15
  the
• 7:15
  portfolio.
• 7:15
  And
• 7:16
  so
• 7:16
  I
• 7:16
  think
• 7:16
  you're
• 7:16
  spot
• 7:16
  on.
• 7:16
  Yeah.
• 7:17
  Give,
• 7:17
  what's
• 7:17
  a,
• 7:17
  David?
• 7:17
  What's
• 7:18
  a
• 7:18
  simple
• 7:18
  way
• 7:18
  to
• 7:18
  measure
• 7:19
  risk?
• 7:19
  Am
• 7:19
  I
• 7:19
  just
• 7:19
  because
• 7:19
  you're
• 7:20
  25
• 7:20
  years
• 7:20
  old.
• 7:21
  You
• 7:21
  may
• 7:21
  not
• 7:21
  wanna
• 7:21
  lose
• 7:22
  50%
• 7:22
  of
• 7:22
  your
• 7:22
  portfolio,
• 7:23
  and
• 7:23
  it's
• 7:23
  just
• 7:24
  a
• 7:24
  matter
• 7:24
  of,
• 7:24
  right.
• 7:25
  So
• 7:25
  if
• 7:25
  I
• 7:25
  have
• 7:25
  different
• 7:25
  asset
• 7:26
  classes,
• 7:26
  I
• 7:26
  want
• 7:27
  a,
• 7:27
  a
• 7:27
  segment
• 7:27
  of
• 7:27
  my
• 7:28
  portfolio
• 7:28
  that's
• 7:29
  gonna
• 7:29
  give
• 7:29
  me
• 7:29
  lower
• 7:30
  draw
• 7:30
  down
• 7:31
  that
• 7:31
  has
• 7:31
  less
• 7:31
  beta
• 7:32
  or
• 7:32
  correlation
• 7:32
  to
• 7:32
  the
• 7:32
  other
• 7:33
  parts
• 7:33
  of
• 7:33
  my
• 7:33
  portfolio
• 7:33
  because
• 7:34
  volatility
• 7:34
  matters.
• 7:35
  But
• 7:35
  it's
• 7:35
  just
• 7:35
  not
• 7:35
  that
• 7:35
  specific
• 7:36
  volatility.
• 7:37
  I
• 7:37
  like
• 7:37
  draw
• 7:37
  down
• 7:37
  as
• 7:38
  a
• 7:38
  really
• 7:38
  good
• 7:38
  measure
• 7:38
  to
• 7:39
  measure
• 7:39
  how
• 7:39
  risky
• 7:39
  is
• 7:40
  my
• 7:40
  portfolio.
• 7:41
  Yeah,
• 7:41
  that's
• 7:41
  fantastic.
• 7:42
  As
• 7:42
  for.
• 7:43
  Okay.
• 7:43
  We
• 7:44
  focus
• 7:44
  a
• 7:44
  lot.
• 7:45
  We've
• 7:45
  created,
• 7:45
  uh,
• 7:46
  Zephyr
• 7:46
  Pain
• 7:47
  Index
• 7:47
  Pain
• 7:47
  Ratio,
• 7:48
  which
• 7:48
  is
• 7:48
  a
• 7:48
  take
• 7:49
  on
• 7:49
  the
• 7:49
  sharp
• 7:49
  ratio
• 7:50
  to
• 7:51
  measure
• 7:51
  the
• 7:51
  drawdown
• 7:52
  risk.
• 7:52
  Yep.
• 7:52
  Because,
• 7:53
  like
• 7:53
  I
• 7:53
  said,
• 7:54
  upside
• 7:54
  volatility,
• 7:55
  um,
• 7:56
  most
• 7:56
  people
• 7:57
  can
• 7:57
  handle
• 7:57
  that.
• 7:58
  That's
• 7:58
  right.
• 7:58
  That's
• 7:58
  right.
• 7:58
  It's
• 7:58
  that
• 7:58
  drawdown
• 7:59
  risk.
• 7:59
  So,
• 8:00
  and
• 8:00
  we'll,
• 8:00
  in
• 8:00
  our
• 8:00
  private
• 8:01
  wealth
• 8:01
  practice,
• 8:01
  we'll
• 8:02
  ask,
• 8:02
  when
• 8:02
  individuals
• 8:03
  come
• 8:03
  in
• 8:03
  our
• 8:03
  office,
• 8:03
  we'll
• 8:03
  say,
• 8:03
  Hey,
• 8:04
  how
• 8:04
  much
• 8:04
  are
• 8:04
  you
• 8:04
  willing
• 8:04
  to
• 8:04
  lose?
• 8:05
  Well,
• 8:05
  David,
• 8:05
  I
• 8:05
  don't
• 8:06
  wanna
• 8:06
  lose
• 8:06
  anything,
• 8:06
  but
• 8:06
  I
• 8:06
  understand
• 8:07
  that.
• 8:07
  But
• 8:07
  how
• 8:07
  much
• 8:08
  are
• 8:08
  you
• 8:08
  actually
• 8:08
  willing
• 8:08
  to
• 8:09
  lose?
• 8:09
  And
• 8:09
  they
• 8:09
  may
• 8:09
  say,
• 8:09
  well,
• 8:10
  David,
• 8:10
  I
• 8:10
  wanna
• 8:10
  be
• 8:10
  down
• 8:10
  10%
• 8:11
  or
• 8:11
  15%.
• 8:12
  And
• 8:12
  then
• 8:13
  we'll
• 8:13
  run
• 8:13
  a
• 8:13
  risk
• 8:14
  analysis
• 8:14
  on
• 8:14
  their
• 8:14
  actual
• 8:15
  positions.
• 8:16
  Well,
• 8:16
  in,
• 8:16
  in
• 8:17
  a
• 8:17
  year
• 8:17
  like
• 8:17
  oh
• 8:17
  eight,
• 8:18
  they
• 8:18
  would've
• 8:18
  been
• 8:18
  down
• 8:19
  40
• 8:19
  or
• 8:19
  50%.
• 8:20
  And
• 8:20
  so
• 8:20
  I
• 8:20
  think
• 8:21
  investors
• 8:21
  are
• 8:21
  not
• 8:21
  aware
• 8:22
  and
• 8:22
  some
• 8:22
  of
• 8:22
  it's
• 8:22
  just
• 8:22
  'cause
• 8:22
  the
• 8:23
  markets
• 8:23
  have
• 8:23
  done
• 8:23
  so
• 8:23
  well.
• 8:24
  They
• 8:24
  actually
• 8:24
  hold
• 8:24
  a
• 8:25
  lot
• 8:25
  more
• 8:25
  draw
• 8:25
  down
• 8:26
  risk
• 8:26
  than
• 8:26
  they
• 8:26
  perceive.
• 8:27
  And
• 8:28
  that's
• 8:28
  a
• 8:28
  really
• 8:28
  issue.
• 8:28
  That's
• 8:29
  a
• 8:29
  big
• 8:29
  issue,
• 8:29
  which
• 8:29
  is
• 8:29
  why
• 8:29
  investors
• 8:30
  sell.
• 8:31
  Uh,
• 8:31
  when
• 8:31
  markets
• 8:31
  are
• 8:31
  going
• 8:32
  down
• 8:32
  at
• 8:32
  the
• 8:32
  wrong
• 8:32
  times.
• 8:33
  'cause
• 8:33
  they
• 8:33
  don't
• 8:33
  know
• 8:34
  really
• 8:34
  what
• 8:34
  that
• 8:34
  draw
• 8:34
  down
• 8:34
  risk
• 8:35
  is.
• 8:35
  Yeah.
• 8:36
  And
• 8:36
  then,
• 8:36
  then
• 8:37
  you
• 8:37
  lock
• 8:37
  in
• 8:37
  your
• 8:37
  gains
• 8:38
  and
• 8:38
  Correct.
• 8:38
  Or
• 8:38
  locking
• 8:39
  your
• 8:39
  losses
• 8:39
  and
• 8:39
  it's
• 8:40
  the
• 8:40
  worst
• 8:40
  thing
• 8:40
  you
• 8:40
  can
• 8:40
  do.
• 8:41
  Yes.
• 8:41
  It
• 8:42
  is
• 8:42
  the
• 8:42
  worst
• 8:42
  thing,
• 8:42
  but
• 8:44
  it's
• 8:44
  very
• 8:44
  emotional.
• 8:44
  It's
• 8:45
  hard
• 8:45
  not
• 8:45
  to.
• 8:46
  Yeah.
• 8:46
  But
• 8:46
  I
• 8:46
  think
• 8:46
  when
• 8:47
  you,
• 8:47
  at
• 8:47
  the
• 8:47
  early
• 8:48
  stages,
• 8:48
  like
• 8:48
  you
• 8:48
  said,
• 8:49
  when
• 8:49
  you
• 8:49
  do
• 8:49
  that
• 8:49
  analysis,
• 8:50
  you
• 8:50
  set
• 8:51
  the
• 8:51
  expectations.
• 8:52
  There's
• 8:53
  transparency
• 8:54
  there.
• 8:54
  I
• 8:54
  think
• 8:54
  they
• 8:55
  can
• 8:55
  ride
• 8:55
  those
• 8:55
  waves
• 8:56
  out,
• 8:56
  um,
• 8:57
  long
• 8:57
  term.
• 8:58
  And
• 8:58
  it
• 8:58
  helps
• 8:59
  them.
• 8:59
  So
• 8:59
  do
• 8:59
  you
• 8:59
  feel
• 9:00
  drawdown,
• 9:01
  is
• 9:01
  there
• 9:01
  a
• 9:01
  specific
• 9:02
  drawdown
• 9:02
  risk,
• 9:03
  uh,
• 9:03
  metric
• 9:03
  or
• 9:03
  something
• 9:04
  that
• 9:04
  you
• 9:04
  use
• 9:05
  that
• 9:05
  you
• 9:05
  like
• 9:05
  more
• 9:06
  than
• 9:06
  others
• 9:07
  that
• 9:07
  you
• 9:07
  really
• 9:07
  use
• 9:08
  at
• 9:08
  X
• 9:08
  funds?
• 9:09
  Yeah,
• 9:09
  so
• 9:10
  again,
• 9:10
  we,
• 9:10
  we
• 9:10
  have
• 9:11
  software
• 9:11
  that
• 9:11
  we
• 9:11
  use
• 9:11
  for
• 9:12
  that.
• 9:12
  Morningstar,
• 9:12
  we
• 9:13
  have
• 9:13
  nitrogen
• 9:13
  software
• 9:14
  that
• 9:14
  tells
• 9:14
  us
• 9:14
  the
• 9:14
  drawdown,
• 9:15
  uh,
• 9:15
  fin.
• 9:16
  We
• 9:16
  do
• 9:16
  some
• 9:16
  analysis
• 9:16
  for
• 9:17
  drawdown
• 9:17
  for
• 9:17
  asset
• 9:18
  classes.
• 9:19
  But
• 9:19
  again,
• 9:19
  it's
• 9:19
  the
• 9:20
  math
• 9:20
  that
• 9:20
  matters
• 9:21
  because
• 9:21
  it's
• 9:21
  really
• 9:21
  exponential.
• 9:22
  Or
• 9:22
  again,
• 9:22
  I
• 9:22
  know
• 9:22
  this
• 9:22
  is
• 9:23
  simple,
• 9:23
  but
• 9:23
  just
• 9:23
  if
• 9:24
  you
• 9:24
  lose
• 9:24
  50%,
• 9:25
  it's
• 9:25
  not
• 9:25
  50%
• 9:26
  that
• 9:26
  you
• 9:26
  need
• 9:26
  to
• 9:26
  make
• 9:26
  it
• 9:26
  back.
• 9:27
  It's
• 9:27
  a
• 9:27
  hundred
• 9:28
  percent
• 9:28
  to
• 9:28
  make
• 9:28
  back
• 9:29
  what
• 9:29
  you've
• 9:29
  lost.
• 9:30
  So
• 9:30
  the
• 9:30
  math
• 9:30
  works
• 9:31
  against
• 9:31
  you
• 9:31
  on
• 9:31
  the
• 9:31
  draw
• 9:32
  down
• 9:32
  side.
• 9:32
  Uh,
• 9:33
  which
• 9:33
  is
• 9:33
  why
• 9:33
  I
• 9:33
  also
• 9:33
  think
• 9:34
  some
• 9:34
  of
• 9:34
  the
• 9:34
  ETFs
• 9:35
  that
• 9:35
  we
• 9:35
  have
• 9:35
  at
• 9:35
  X
• 9:35
  funds,
• 9:36
  you
• 9:36
  know,
• 9:37
  we
• 9:37
  don't,
• 9:38
  we
• 9:38
  are
• 9:38
  risk
• 9:38
  investors,
• 9:39
  but
• 9:39
  if
• 9:39
  you're
• 9:39
  also
• 9:40
  generating
• 9:41
  income,
• 9:42
  while
• 9:42
  this,
• 9:42
  these
• 9:43
  asset
• 9:43
  classes
• 9:43
  may
• 9:43
  possibly
• 9:44
  be
• 9:44
  going
• 9:44
  down
• 9:44
  in
• 9:44
  value,
• 9:45
  it
• 9:45
  actually
• 9:45
  provides
• 9:46
  some
• 9:46
  comfort.
• 9:47
  Whether
• 9:47
  while
• 9:47
  you're
• 9:47
  generating
• 9:48
  harvesting
• 9:48
  volatility.
• 9:49
  And
• 9:49
  so
• 9:49
  I
• 9:49
  think
• 9:49
  that
• 9:50
  is
• 9:50
  another
• 9:50
  way
• 9:50
  to
• 9:50
  hedge
• 9:51
  your
• 9:51
  downside
• 9:51
  risk
• 9:52
  is
• 9:52
  like,
• 9:52
  I
• 9:52
  don't
• 9:52
  wanna
• 9:53
  be
• 9:53
  down,
• 9:53
  but
• 9:53
  if
• 9:53
  I'm
• 9:53
  gonna
• 9:53
  be
• 9:54
  down,
• 9:54
  wait.
• 9:54
  If
• 9:54
  I
• 9:54
  can
• 9:54
  still
• 9:55
  generate
• 9:55
  income
• 9:56
  and
• 9:56
  not
• 9:56
  have
• 9:56
  to
• 9:56
  sell
• 9:57
  any
• 9:57
  of
• 9:57
  my
• 9:57
  positions,
• 9:58
  it's
• 9:58
  making,
• 9:59
  uh,
• 9:59
  I
• 9:59
  guess
• 9:59
  sunshine
• 10:00
  out
• 10:00
  of
• 10:00
  a
• 10:00
  cloudy
• 10:01
  day.
• 10:01
  Uh,
• 10:02
  if
• 10:02
  you
• 10:02
  could
• 10:02
  still
• 10:02
  generate
• 10:03
  that
• 10:03
  while
• 10:03
  you're
• 10:03
  holding
• 10:03
  the
• 10:03
  positions.
• 10:04
  Alright,
• 10:05
  so
• 10:05
  then
• 10:05
  it
• 10:05
  brings
• 10:06
  that
• 10:06
  million
• 10:07
  dollar
• 10:07
  question.
• 10:08
  How
• 10:08
  do
• 10:08
  you
• 10:08
  do
• 10:09
  it?
• 10:09
  I'm
• 10:10
  an
• 10:10
  investor,
• 10:11
  David.
• 10:11
  Yeah.
• 10:12
  I
• 10:12
  want
• 10:12
  the
• 10:12
  upside.
• 10:13
  Markets
• 10:13
  are
• 10:13
  resilient.
• 10:14
  Yeah.
• 10:14
  I
• 10:15
  don't
• 10:15
  want
• 10:15
  to
• 10:15
  forego
• 10:16
  that
• 10:17
  potential
• 10:17
  20%
• 10:18
  that
• 10:19
  markets
• 10:19
  have
• 10:19
  given
• 10:20
  us
• 10:20
  the
• 10:20
  past
• 10:20
  three
• 10:20
  years,
• 10:22
  but
• 10:22
  how
• 10:23
  do
• 10:23
  you
• 10:23
  do
• 10:23
  that?
• 10:24
  You
• 10:24
  know?
• 10:24
  Protect
• 10:25
  the
• 10:25
  downside.
• 10:25
  Yeah.
• 10:26
  Limit
• 10:26
  the
• 10:26
  draw
• 10:27
  down
• 10:27
  risk,
• 10:27
  but
• 10:28
  also
• 10:29
  not
• 10:29
  limit
• 10:30
  that
• 10:30
  upside.
• 10:31
  Gains.
• 10:31
  Like
• 10:31
  how
• 10:32
  do
• 10:32
  you,
• 10:32
  how
• 10:32
  do
• 10:32
  you
• 10:32
  do
• 10:32
  it?
• 10:33
  To
• 10:33
  me,
• 10:33
  it's,
• 10:33
  there's
• 10:34
  no
• 10:34
  free
• 10:34
  lunches,
• 10:35
  David.
• 10:35
  You
• 10:35
  gotta
• 10:36
  give
• 10:36
  up
• 10:36
  something.
• 10:37
  Yeah.
• 10:37
  You
• 10:37
  know,
• 10:37
  uh,
• 10:38
  I
• 10:38
  was
• 10:38
  literally
• 10:39
  took
• 10:39
  the
• 10:39
  words
• 10:39
  outta
• 10:39
  my
• 10:40
  mouth.
• 10:40
  Mouth.
• 10:40
  There's
• 10:40
  no
• 10:40
  free
• 10:41
  lunch
• 10:41
  to
• 10:41
  this,
• 10:42
  so
• 10:42
  you
• 10:42
  have
• 10:42
  to
• 10:42
  decide,
• 10:43
  right,
• 10:43
  what
• 10:44
  is
• 10:44
  the
• 10:44
  level
• 10:44
  of
• 10:44
  safety
• 10:45
  that
• 10:45
  I
• 10:45
  want
• 10:45
  without
• 10:46
  capping
• 10:46
  too
• 10:46
  much
• 10:47
  of
• 10:47
  my
• 10:47
  upside?
• 10:48
  And
• 10:48
  so
• 10:49
  I
• 10:49
  just
• 10:49
  believe
• 10:49
  equity
• 10:50
  markets
• 10:50
  move
• 10:50
  higher
• 10:51
  over
• 10:51
  time.
• 10:52
  So
• 10:52
  if
• 10:52
  you
• 10:52
  believe
• 10:52
  equity
• 10:53
  markets
• 10:53
  head
• 10:53
  high
• 10:54
  over
• 10:54
  time,
• 10:54
  you
• 10:54
  don't
• 10:54
  want
• 10:54
  to
• 10:54
  cap
• 10:55
  your
• 10:55
  upside
• 10:55
  much.
• 10:56
  And
• 10:56
  so
• 10:57
  one
• 10:57
  of
• 10:57
  the
• 10:57
  unique
• 10:58
  things
• 10:58
  at
• 10:58
  ex
• 10:58
  funds
• 10:59
  that
• 10:59
  we
• 10:59
  do
• 10:59
  that
• 10:59
  a
• 10:59
  lot
• 10:59
  of
• 10:59
  these
• 10:59
  other
• 11:00
  ETF
• 11:00
  issues
• 11:00
  aren't
• 11:01
  doing,
• 11:01
  we
• 11:01
  generally
• 11:02
  specialize
• 11:02
  in
• 11:03
  put
• 11:03
  spread
• 11:03
  selling
• 11:04
  versus
• 11:04
  calls
• 11:04
  or
• 11:05
  call
• 11:05
  spread
• 11:05
  selling.
• 11:06
  Now
• 11:07
  again,
• 11:07
  Dave,
• 11:07
  you're
• 11:07
  talking
• 11:08
  about
• 11:08
  risk
• 11:08
  and
• 11:08
  now
• 11:08
  you're
• 11:09
  talking
• 11:09
  about
• 11:09
  selling
• 11:09
  put
• 11:10
  spreads,
• 11:10
  put
• 11:10
  spreads
• 11:11
  does
• 11:11
  add
• 11:11
  some
• 11:12
  little
• 11:12
  bit
• 11:12
  down
• 11:13
  additional
• 11:13
  downside
• 11:14
  exposure.
• 11:14
  But
• 11:15
  if
• 11:15
  you
• 11:15
  believe
• 11:15
  equity
• 11:15
  markets
• 11:16
  head
• 11:16
  up
• 11:16
  over
• 11:16
  time.
• 11:17
  But
• 11:17
  your
• 11:18
  time
• 11:18
  is
• 11:18
  your
• 11:18
  friend,
• 11:19
  because
• 11:19
  our
• 11:19
  opinion
• 11:20
  is
• 11:20
  those
• 11:20
  put
• 11:20
  spreads
• 11:20
  will
• 11:21
  outperform.
• 11:21
  So
• 11:21
  you
• 11:21
  get
• 11:21
  all
• 11:22
  of
• 11:22
  the
• 11:22
  upside
• 11:23
  of
• 11:23
  the
• 11:23
  underlying
• 11:23
  equities
• 11:24
  and
• 11:24
  you
• 11:24
  generate
• 11:25
  income
• 11:25
  without
• 11:25
  capping
• 11:26
  any
• 11:26
  upside
• 11:26
  exposure.
• 11:27
  So
• 11:27
  that's
• 11:27
  the
• 11:27
  way
• 11:28
  we,
• 11:28
  we
• 11:28
  also
• 11:28
  like
• 11:28
  an
• 11:28
  iron
• 11:29
  condor
• 11:29
  approach.
• 11:30
  Okay.
• 11:30
  Uh,
• 11:30
  not
• 11:31
  to
• 11:31
  get
• 11:31
  too
• 11:31
  technical,
• 11:31
  put
• 11:31
  our
• 11:32
  listeners
• 11:32
  to
• 11:32
  sleep,
• 11:33
  but
• 11:33
  in
• 11:33
  our,
• 11:33
  in
• 11:33
  our
• 11:34
  iron
• 11:34
  condor,
• 11:34
  you
• 11:34
  can
• 11:34
  actually
• 11:35
  sell
• 11:35
  calls
• 11:36
  on
• 11:36
  part
• 11:36
  of
• 11:36
  the
• 11:36
  portfolio.
• 11:37
  Sell
• 11:37
  puts
• 11:38
  on
• 11:38
  the
• 11:38
  other
• 11:38
  part
• 11:38
  of
• 11:38
  the
• 11:38
  portfolio.
• 11:39
  So
• 11:39
  you
• 11:39
  kind
• 11:40
  of
• 11:40
  have
• 11:40
  this,
• 11:40
  this
• 11:41
  up
• 11:41
  and
• 11:41
  down
• 11:41
  kind
• 11:42
  of
• 11:42
  caller
• 11:42
  between
• 11:42
  your
• 11:42
  two
• 11:43
  positions
• 11:43
  to
• 11:43
  where
• 11:43
  if
• 11:44
  the
• 11:44
  markets
• 11:44
  rip
• 11:44
  higher.
• 11:45
  You
• 11:45
  still
• 11:46
  are
• 11:46
  not
• 11:46
  capping
• 11:46
  all
• 11:46
  the
• 11:47
  upsides,
• 11:47
  so
• 11:47
  I
• 11:47
  generally
• 11:48
  like
• 11:48
  a
• 11:48
  put
• 11:48
  spread
• 11:49
  approach
• 11:49
  or
• 11:49
  a
• 11:50
  call
• 11:50
  on
• 11:50
  put
• 11:50
  spreader
• 11:50
  coach
• 11:51
  that
• 11:51
  gives
• 11:51
  you
• 11:51
  kinda
• 11:51
  the
• 11:51
  best
• 11:51
  of
• 11:52
  both
• 11:52
  up
• 11:52
  and
• 11:52
  down
• 11:52
  markets.
• 11:53
  Mm-hmm.
• 11:53
  That's
• 11:54
  fantastic
• 11:54
  David.
• 11:54
  But
• 11:55
  though
• 11:55
  then
• 11:55
  my
• 11:56
  great
• 11:57
  strategy.
• 11:58
  You
• 11:58
  didn't
• 11:58
  put
• 11:58
  me
• 11:58
  to
• 11:59
  sleep,
• 11:59
  but
• 11:59
  you
• 12:00
  were
• 12:00
  like,
• 12:00
  I
• 12:00
  was
• 12:00
  like,
• 12:01
  oh
• 12:01
  my
• 12:01
  gosh,
• 12:01
  I'm
• 12:01
  gonna
• 12:01
  have
• 12:02
  to
• 12:02
  Google
• 12:02
  this
• 12:02
  and
• 12:02
  find
• 12:03
  out
• 12:03
  what's
• 12:03
  David
• 12:04
  talking
• 12:04
  about.
• 12:05
  How
• 12:05
  do
• 12:05
  you
• 12:05
  explain
• 12:05
  that
• 12:05
  to
• 12:06
  financial
• 12:06
  advisors
• 12:07
  and
• 12:07
  so
• 12:07
  they
• 12:08
  can
• 12:08
  explain
• 12:09
  it
• 12:09
  to
• 12:10
  their
• 12:10
  clients.
• 12:11
  And
• 12:11
  like
• 12:11
  we
• 12:11
  said
• 12:12
  at
• 12:12
  the
• 12:12
  beginning,
• 12:12
  it's
• 12:12
  a
• 12:12
  very
• 12:13
  competitive
• 12:13
  space.
• 12:14
  Yeah.
• 12:14
  Right.
• 12:14
  You
• 12:14
  gotta
• 12:15
  be
• 12:15
  able
• 12:15
  to
• 12:15
  tell
• 12:15
  your
• 12:15
  story.
• 12:16
  Yeah.
• 12:16
  In
• 12:17
  a
• 12:17
  way
• 12:17
  that
• 12:17
  financial
• 12:18
  advisor
• 12:18
  can
• 12:18
  understand
• 12:19
  it
• 12:19
  so
• 12:19
  they
• 12:19
  can.
• 12:20
  Pass
• 12:20
  it
• 12:20
  on.
• 12:21
  Yeah.
• 12:21
  How
• 12:21
  do
• 12:21
  you
• 12:21
  do
• 12:21
  that?
• 12:22
  Yeah.
• 12:22
  It
• 12:22
  options
• 12:23
  are
• 12:23
  a,
• 12:23
  are
• 12:23
  a
• 12:23
  way,
• 12:24
  in
• 12:24
  my
• 12:24
  opinion,
• 12:24
  it's
• 12:25
  one
• 12:25
  of
• 12:25
  the
• 12:25
  best
• 12:25
  ways
• 12:25
  that
• 12:25
  you
• 12:25
  can
• 12:25
  hedge
• 12:26
  or
• 12:26
  generate
• 12:27
  income
• 12:27
  is
• 12:27
  using
• 12:27
  derivatives.
• 12:28
  But
• 12:28
  that
• 12:28
  Right,
• 12:29
  you
• 12:29
  start
• 12:29
  to
• 12:29
  get
• 12:29
  the
• 12:29
  glossy
• 12:30
  eye.
• 12:30
  David,
• 12:31
  please
• 12:31
  don't
• 12:31
  start
• 12:32
  talking
• 12:32
  about
• 12:32
  this.
• 12:33
  I,
• 12:33
  I
• 12:33
  think
• 12:34
  the
• 12:34
  great
• 12:34
  thing
• 12:34
  about
• 12:35
  for
• 12:35
  using
• 12:35
  an
• 12:36
  ETF
• 12:36
  that
• 12:36
  does
• 12:36
  it
• 12:36
  for
• 12:37
  you
• 12:37
  is
• 12:37
  you
• 12:38
  don't
• 12:38
  have
• 12:38
  to
• 12:38
  be
• 12:39
  the
• 12:39
  expert
• 12:39
  at
• 12:40
  selling
• 12:40
  options,
• 12:41
  but
• 12:41
  you
• 12:41
  have
• 12:41
  to
• 12:41
  be
• 12:41
  able
• 12:41
  to
• 12:42
  explain
• 12:42
  it
• 12:42
  in
• 12:42
  a
• 12:42
  way
• 12:42
  that
• 12:43
  that
• 12:43
  makes
• 12:43
  sense
• 12:44
  and,
• 12:44
  and
• 12:44
  I
• 12:44
  think
• 12:44
  that
• 12:45
  it's
• 12:45
  really
• 12:45
  talking
• 12:46
  about.
• 12:46
  We
• 12:46
  wanna
• 12:47
  harvest
• 12:47
  volatility.
• 12:48
  So
• 12:48
  every
• 12:48
  of
• 12:48
  our
• 12:49
  underlying
• 12:49
  positions,
• 12:50
  they
• 12:50
  have
• 12:50
  a
• 12:50
  set
• 12:51
  amount
• 12:51
  of
• 12:51
  volatility,
• 12:51
  meaning
• 12:52
  a
• 12:52
  standard
• 12:52
  deviation
• 12:53
  that
• 12:53
  that
• 12:53
  stock
• 12:54
  will
• 12:54
  move.
• 12:54
  And
• 12:54
  so
• 12:55
  with
• 12:55
  when
• 12:55
  we're
• 12:55
  selling
• 12:55
  options,
• 12:56
  we're
• 12:56
  just
• 12:56
  harvesting,
• 12:57
  what
• 12:57
  is
• 12:57
  that
• 12:57
  implied
• 12:58
  volatility?
• 12:59
  Uh,
• 12:59
  so
• 12:59
  again,
• 13:00
  it's
• 13:00
  just
• 13:00
  letting
• 13:01
  the
• 13:01
  client
• 13:01
  understand
• 13:01
  that
• 13:01
  we're
• 13:02
  gonna
• 13:02
  generate
• 13:02
  income,
• 13:03
  we're
• 13:03
  gonna
• 13:03
  own
• 13:03
  the
• 13:03
  underlying,
• 13:04
  uh,
• 13:04
  but
• 13:05
  there's
• 13:05
  so
• 13:05
  many
• 13:05
  different
• 13:05
  ways
• 13:06
  we
• 13:06
  could
• 13:06
  spend
• 13:06
  hours
• 13:07
  talking
• 13:07
  about
• 13:07
  the
• 13:07
  different
• 13:07
  option
• 13:08
  strategies.
• 13:08
  That's
• 13:08
  another
• 13:08
  episode,
• 13:09
  David.
• 13:09
  That's
• 13:10
  exactly
• 13:10
  right.
• 13:10
  I'd
• 13:10
  love
• 13:10
  to
• 13:10
  be
• 13:11
  on
• 13:11
  and
• 13:11
  and
• 13:11
  bring
• 13:12
  your
• 13:12
  coffee
• 13:12
  for
• 13:12
  that
• 13:12
  one.
• 13:12
  Yeah.
• 13:13
  Yeah.
• 13:14
  Awesome.
• 13:15
  Well,
• 13:15
  I
• 13:15
  love
• 13:15
  it.
• 13:15
  So
• 13:16
  then
• 13:16
  in
• 13:16
  a
• 13:17
  strategy
• 13:17
  like
• 13:17
  this,
• 13:18
  a
• 13:18
  financial
• 13:18
  advisor,
• 13:19
  they're
• 13:19
  interested,
• 13:20
  David,
• 13:21
  you
• 13:21
  know,
• 13:22
  what
• 13:22
  is
• 13:23
  the
• 13:23
  primary
• 13:24
  consideration
• 13:25
  they
• 13:25
  need
• 13:25
  to
• 13:25
  make
• 13:26
  when
• 13:26
  they're
• 13:26
  looking
• 13:26
  to
• 13:26
  add,
• 13:27
  implement
• 13:28
  a
• 13:28
  strategy
• 13:28
  like
• 13:28
  this
• 13:29
  in
• 13:29
  their
• 13:29
  client
• 13:29
  portfolios?
• 13:30
  Or
• 13:30
  one
• 13:30
  thing,
• 13:31
  like
• 13:31
  in
• 13:31
  terms
• 13:31
  of,
• 13:32
  you
• 13:32
  know,
• 13:32
  transparency
• 13:33
  or
• 13:34
  alignment?
• 13:34
  I'm
• 13:35
  big
• 13:35
  in
• 13:35
  alignment
• 13:36
  with.
• 13:37
  The
• 13:37
  product
• 13:37
  and
• 13:37
  the
• 13:37
  client's?
• 13:38
  Yeah.
• 13:38
  Investment
• 13:39
  objectives.
• 13:39
  Something
• 13:40
  that
• 13:40
  they
• 13:40
  really
• 13:41
  need
• 13:41
  to
• 13:41
  worry
• 13:42
  about
• 13:42
  or
• 13:42
  consider.
• 13:43
  Yeah,
• 13:43
  I
• 13:43
  think
• 13:43
  this
• 13:44
  is
• 13:44
  all,
• 13:44
  you
• 13:44
  know
• 13:44
  for,
• 13:45
  so
• 13:45
  if
• 13:45
  you
• 13:45
  just
• 13:45
  take
• 13:45
  our
• 13:45
  X
• 13:46
  funds,
• 13:46
  ETS
• 13:46
  for
• 13:46
  example,
• 13:47
  these
• 13:47
  are
• 13:48
  geared
• 13:48
  for
• 13:48
  people
• 13:48
  that
• 13:48
  want
• 13:48
  income.
• 13:49
  So
• 13:49
  these
• 13:50
  are
• 13:50
  for
• 13:50
  individuals
• 13:50
  that
• 13:50
  want
• 13:51
  income.
• 13:51
  But
• 13:51
  where
• 13:51
  we've
• 13:51
  seen
• 13:52
  it
• 13:52
  in
• 13:52
  our
• 13:52
  private
• 13:53
  wealth
• 13:53
  and
• 13:53
  other
• 13:53
  advisory
• 13:53
  practices
• 13:54
  really
• 13:54
  work
• 13:54
  is
• 13:55
  if
• 13:55
  a
• 13:55
  client
• 13:56
  traditional
• 13:57
  draw
• 13:57
  down,
• 13:58
  or
• 13:58
  uh,
• 13:58
  traditional
• 13:59
  distribution
• 14:00
  from
• 14:00
  a
• 14:00
  portfolio
• 14:00
  is
• 14:00
  usually
• 14:01
  four
• 14:01
  to
• 14:01
  5%.
• 14:02
  We
• 14:02
  call
• 14:02
  a
• 14:02
  safe
• 14:03
  withdrawal
• 14:03
  rate
• 14:03
  of
• 14:03
  around
• 14:04
  four
• 14:04
  to
• 14:04
  5%.
• 14:05
  Well,
• 14:05
  I'll
• 14:05
  give
• 14:05
  you
• 14:05
  an
• 14:05
  example.
• 14:06
  GIX
• 14:06
  is
• 14:06
  one
• 14:06
  of
• 14:06
  our
• 14:07
  interna
• 14:07
  and
• 14:07
  our
• 14:07
  global
• 14:08
  equity
• 14:08
  ETFs
• 14:08
  that
• 14:08
  has
• 14:09
  max
• 14:09
  seven,
• 14:09
  has
• 14:09
  small
• 14:10
  caps,
• 14:10
  mid
• 14:10
  caps,
• 14:10
  internationals.
• 14:11
  It
• 14:11
  has
• 14:11
  a
• 14:11
  24%
• 14:12
  distribution
• 14:13
  rate
• 14:13
  on
• 14:13
  the
• 14:13
  fund.
• 14:14
  So
• 14:14
  if
• 14:14
  you
• 14:14
  say,
• 14:14
  well,
• 14:14
  David,
• 14:15
  what
• 14:15
  in
• 14:15
  the
• 14:15
  world?
• 14:15
  Well,
• 14:16
  we
• 14:16
  tell
• 14:16
  our
• 14:16
  clients,
• 14:17
  if
• 14:17
  you
• 14:17
  allocate
• 14:17
  a
• 14:18
  20%
• 14:18
  allocation
• 14:19
  to
• 14:19
  a
• 14:19
  fund
• 14:19
  that
• 14:20
  has
• 14:20
  a
• 14:20
  24%
• 14:21
  distribution,
• 14:21
  what
• 14:21
  did
• 14:22
  that
• 14:22
  just
• 14:22
  do?
• 14:22
  That
• 14:23
  added
• 14:23
  an
• 14:23
  additional
• 14:24
  5%,
• 14:25
  uh,
• 14:26
  withdrawal
• 14:26
  to
• 14:27
  a
• 14:27
  portfolio.
• 14:28
  And
• 14:28
  so
• 14:28
  I
• 14:28
  think
• 14:29
  where
• 14:29
  financial
• 14:29
  advisors
• 14:30
  can
• 14:30
  best
• 14:30
  look
• 14:30
  at
• 14:30
  these
• 14:30
  high
• 14:31
  income
• 14:31
  funds
• 14:31
  as.
• 14:32
  To
• 14:32
  allocate
• 14:32
  a
• 14:32
  portion
• 14:33
  of
• 14:33
  it
• 14:33
  in
• 14:34
  your
• 14:34
  equity
• 14:35
  gross
• 14:35
  leave.
• 14:36
  But
• 14:36
  if
• 14:36
  a
• 14:36
  client
• 14:37
  wants
• 14:37
  income,
• 14:38
  they
• 14:38
  can
• 14:38
  actually
• 14:39
  double
• 14:39
  what
• 14:40
  the
• 14:40
  amount
• 14:40
  is.
• 14:40
  They're
• 14:40
  pulling
• 14:41
  off
• 14:41
  a
• 14:41
  portfolio.
• 14:41
  It's
• 14:41
  a
• 14:42
  win
• 14:42
  for
• 14:42
  the
• 14:42
  financial
• 14:42
  advisor
• 14:43
  'cause
• 14:43
  you're
• 14:43
  providing
• 14:44
  income.
• 14:44
  But
• 14:44
  it's
• 14:44
  a
• 14:44
  real
• 14:45
  win
• 14:45
  for
• 14:45
  the
• 14:45
  client
• 14:45
  because
• 14:46
  they
• 14:46
  can
• 14:46
  generally
• 14:46
  get,
• 14:46
  I
• 14:46
  think,
• 14:47
  more,
• 14:48
  uh,
• 14:48
  peace
• 14:48
  of
• 14:48
  mind
• 14:48
  out
• 14:48
  of
• 14:49
  knowing
• 14:49
  they
• 14:49
  get
• 14:49
  high
• 14:49
  income
• 14:49
  without
• 14:50
  having
• 14:50
  to
• 14:50
  sell
• 14:50
  off
• 14:50
  a
• 14:51
  lot
• 14:51
  of
• 14:51
  their
• 14:51
  equity
• 14:51
  positions.
• 14:53
  David,
• 14:53
  you
• 14:53
  just
• 14:53
  stole
• 14:54
  the
• 14:54
  next
• 14:54
  question.
• 14:55
  I
• 14:55
  was
• 14:55
  gonna
• 14:55
  like,
• 14:56
  where
• 14:56
  do
• 14:56
  you,
• 14:57
  how
• 14:57
  do
• 14:57
  you
• 14:57
  implement
• 14:58
  it?
• 14:58
  Like,
• 14:58
  is
• 14:59
  it,
• 14:59
  you
• 14:59
  know,
• 15:00
  fixed
• 15:00
  income?
• 15:01
  Is
• 15:01
  it
• 15:01
  part
• 15:01
  of
• 15:01
  the
• 15:01
  alternative
• 15:02
  sleeve
• 15:03
  equity?
• 15:03
  But
• 15:04
  you
• 15:04
  explained
• 15:04
  it
• 15:04
  there.
• 15:05
  Perfect.
• 15:05
  Yeah.
• 15:06
  And,
• 15:06
  and
• 15:06
  there's
• 15:06
  different
• 15:07
  types,
• 15:07
  right?
• 15:07
  So
• 15:07
  I
• 15:07
  would
• 15:07
  say
• 15:08
  if,
• 15:08
  if.
• 15:08
  The
• 15:08
  underlying
• 15:09
  is
• 15:09
  all
• 15:09
  equities.
• 15:10
  I
• 15:10
  put
• 15:10
  that
• 15:10
  in
• 15:10
  the
• 15:10
  equity
• 15:10
  sleeve.
• 15:11
  Okay.
• 15:11
  Uh,
• 15:11
  we,
• 15:12
  there's
• 15:12
  also
• 15:12
  fixed
• 15:12
  income,
• 15:13
  uh,
• 15:13
  options
• 15:14
  overlays,
• 15:14
  uh,
• 15:14
  like
• 15:15
  FIXI
• 15:15
  would
• 15:16
  put
• 15:16
  that
• 15:16
  in
• 15:16
  the
• 15:16
  fixed
• 15:16
  income
• 15:16
  sleeve.
• 15:17
  But
• 15:17
  really
• 15:17
  what's
• 15:17
  the
• 15:17
  underlying,
• 15:18
  and
• 15:18
  that's
• 15:18
  the
• 15:18
  appropriate
• 15:19
  sleeve
• 15:19
  that
• 15:19
  it
• 15:19
  should
• 15:19
  be
• 15:19
  in.
• 15:20
  Yeah.
• 15:20
  And
• 15:20
  I
• 15:20
  know
• 15:20
  I,
• 15:21
  I
• 15:21
  always
• 15:21
  get
• 15:22
  the
• 15:22
  same.
• 15:23
  Same
• 15:23
  response
• 15:24
  or
• 15:24
  like,
• 15:24
  Ryan,
• 15:24
  it
• 15:25
  all
• 15:25
  depends
• 15:25
  on
• 15:26
  the
• 15:26
  client's
• 15:26
  risk
• 15:26
  of,
• 15:27
  uh,
• 15:27
  objective
• 15:28
  and,
• 15:29
  you
• 15:29
  know,
• 15:29
  risk
• 15:29
  tolerance.
• 15:30
  But
• 15:31
  is
• 15:31
  there
• 15:31
  like
• 15:31
  a
• 15:32
  certain
• 15:32
  percentage
• 15:34
  of
• 15:34
  the
• 15:34
  portfolio
• 15:35
  portfolio?
• 15:35
  Is
• 15:35
  it
• 15:35
  like
• 15:36
  a
• 15:36
  percent
• 15:37
  of
• 15:37
  equity?
• 15:38
  If
• 15:38
  it's
• 15:38
  an
• 15:38
  equity
• 15:39
  product,
• 15:39
  is
• 15:39
  it
• 15:40
  a.
• 15:40
  Let's
• 15:40
  say
• 15:41
  5%
• 15:42
  of
• 15:42
  your
• 15:43
  equity
• 15:43
  holdings?
• 15:44
  Yeah.
• 15:44
  Or
• 15:45
  is
• 15:45
  there
• 15:45
  like
• 15:45
  a
• 15:45
  earmark
• 15:46
  there
• 15:46
  or
• 15:46
  is
• 15:46
  it
• 15:46
  completely
• 15:47
  dependent
• 15:47
  on
• 15:48
  the
• 15:48
  risk
• 15:48
  tolerance?
• 15:48
  Yeah,
• 15:49
  so
• 15:49
  if
• 15:49
  you're
• 15:49
  just
• 15:49
  using
• 15:50
  X
• 15:50
  funds
• 15:50
  ETFs,
• 15:51
  I
• 15:51
  would
• 15:51
  say
• 15:51
  a
• 15:51
  hundred
• 15:51
  percent
• 15:52
  of
• 15:52
  your
• 15:52
  portfolio
• 15:52
  is,
• 15:53
  uh,
• 15:53
  perfectly
• 15:53
  Just
• 15:53
  kidding.
• 15:54
  Yeah.
• 15:54
  Um,
• 15:55
  no,
• 15:55
  it's,
• 15:56
  it's
• 15:56
  really,
• 15:56
  yeah,
• 15:57
  it's
• 15:57
  what's
• 15:57
  the
• 15:57
  appropriate
• 15:58
  risk.
• 15:58
  But
• 15:58
  I,
• 15:59
  I,
• 15:59
  I
• 15:59
  don't
• 15:59
  wanna
• 15:59
  give
• 15:59
  up
• 15:59
  on
• 15:59
  growth.
• 16:00
  So
• 16:00
  again,
• 16:01
  the
• 16:01
  downsides
• 16:02
  is,
• 16:02
  yeah,
• 16:03
  we
• 16:03
  don't
• 16:03
  want
• 16:03
  to
• 16:03
  cap
• 16:03
  too
• 16:04
  much
• 16:04
  of
• 16:04
  our
• 16:04
  upside
• 16:04
  with,
• 16:05
  'cause
• 16:05
  there's,
• 16:05
  there's
• 16:05
  no
• 16:06
  free
• 16:06
  lunch.
• 16:06
  So
• 16:06
  we're
• 16:06
  either
• 16:06
  gonna
• 16:07
  cap
• 16:07
  some
• 16:07
  of
• 16:07
  our
• 16:07
  income
• 16:08
  or
• 16:08
  our
• 16:08
  growth
• 16:08
  exposure.
• 16:09
  So
• 16:10
  I,
• 16:10
  I
• 16:10
  love
• 16:10
  this
• 16:10
  20
• 16:11
  to
• 16:11
  25%,
• 16:12
  uh,
• 16:13
  portion
• 16:13
  of
• 16:13
  your
• 16:13
  portfolio
• 16:14
  for
• 16:14
  income
• 16:14
  funds,
• 16:15
  but
• 16:15
  there's
• 16:16
  also
• 16:16
  themes
• 16:16
  that
• 16:16
  you
• 16:16
  may
• 16:17
  want
• 16:17
  to
• 16:17
  add.
• 16:17
  And
• 16:18
  so
• 16:18
  if
• 16:18
  it's
• 16:18
  commodities,
• 16:19
  if
• 16:20
  it's
• 16:20
  crypto.
• 16:21
  Uh,
• 16:22
  if
• 16:22
  it's
• 16:22
  themes
• 16:22
  like
• 16:22
  defense
• 16:23
  or
• 16:23
  nuclear,
• 16:24
  well
• 16:24
  then,
• 16:24
  okay,
• 16:24
  David,
• 16:24
  what,
• 16:25
  what
• 16:25
  sleeve
• 16:25
  does
• 16:25
  that
• 16:26
  have?
• 16:26
  And
• 16:26
  I,
• 16:26
  and
• 16:27
  I
• 16:27
  still
• 16:27
  think
• 16:27
  you
• 16:27
  wanna
• 16:27
  have
• 16:28
  this
• 16:28
  little
• 16:28
  non-correlated
• 16:29
  sleeve
• 16:29
  of
• 16:29
  about
• 16:30
  10
• 16:30
  to
• 16:30
  20%
• 16:30
  of
• 16:30
  your
• 16:31
  portfolio.
• 16:32
  Uh,
• 16:32
  that
• 16:32
  can
• 16:32
  have
• 16:32
  metals,
• 16:33
  that
• 16:33
  can
• 16:33
  have
• 16:33
  nuclear,
• 16:34
  that
• 16:34
  can
• 16:34
  have
• 16:34
  defense,
• 16:35
  that's
• 16:35
  really
• 16:35
  non-correlated
• 16:36
  to
• 16:36
  your
• 16:36
  other
• 16:36
  equity
• 16:37
  pieces.
• 16:37
  So
• 16:37
  I
• 16:37
  would
• 16:38
  say
• 16:38
  anywhere
• 16:38
  between
• 16:38
  20
• 16:38
  to
• 16:38
  30%
• 16:39
  of
• 16:39
  your
• 16:39
  portfolio.
• 16:40
  Awesome.
• 16:41
  David,
• 16:42
  great
• 16:43
  Fanta,
• 16:43
  uh,
• 16:44
  conversation.
• 16:45
  Great
• 16:45
  insight.
• 16:46
  Thank
• 16:46
  you
• 16:46
  for
• 16:46
  taking
• 16:46
  time
• 16:47
  outta
• 16:47
  the
• 16:47
  conference.
• 16:48
  You
• 16:48
  guys
• 16:48
  are
• 16:49
  super
• 16:49
  busy.
• 16:50
  Where
• 16:50
  can
• 16:51
  our
• 16:51
  clients
• 16:51
  or
• 16:51
  our
• 16:52
  listeners
• 16:52
  get
• 16:52
  more
• 16:53
  information
• 16:53
  about
• 16:53
  X
• 16:54
  Funds?
• 16:54
  Uh,
• 16:55
  thanks
• 16:55
  for
• 16:55
  the
• 16:55
  time.
• 16:56
  It
• 16:56
  is
• 16:56
  such
• 16:56
  an
• 16:56
  honor
• 16:57
  to
• 16:57
  be
• 16:57
  on
• 16:57
  your
• 16:57
  show.
• 16:57
  Uh,
• 16:57
  thank
• 16:58
  you.
• 16:58
  Can
• 16:58
  go
• 16:58
  to
• 16:58
  our
• 16:58
  website,
• 16:58
  which
• 16:58
  is
• 16:58
  nicholas
• 16:59
  x.com.
• 17:00
  That's
• 17:00
  nicholas
• 17:01
  x.com.
• 17:01
  They
• 17:02
  can
• 17:02
  see
• 17:02
  all
• 17:02
  about
• 17:02
  our,
• 17:02
  our
• 17:03
  funds
• 17:03
  and,
• 17:03
  and
• 17:03
  the
• 17:03
  firm
• 17:03
  as
• 17:04
  well.
• 17:04
  Fantastic.
• 17:05
  David,
• 17:06
  thank
• 17:06
  you
• 17:06
  so
• 17:06
  much
• 17:06
  and
• 17:07
  thank
• 17:07
  you
• 17:07
  to
• 17:07
  all
• 17:07
  the
• 17:07
  listeners
• 17:08
  out
• 17:08
  there.
• 17:09
  You're
• 17:09
  listening
• 17:09
  to
• 17:09
  this
• 17:10
  episode
• 17:10
  of
• 17:10
  Zephyr's
• 17:11
  Adjusted
• 17:11
  for
• 17:12
  Risk
• 17:12
  Podcast.
• 17:13
  You
• 17:13
  can
• 17:13
  watch
• 17:13
  all
• 17:13
  of
• 17:13
  our
• 17:14
  other
• 17:14
  episodes
• 17:15
  on
• 17:15
  the
• 17:15
  Zephyr
• 17:15
  YouTube
• 17:15
  channel.
• 17:16
  Spotify.
• 17:17
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• 17:17
  be
• 17:17
  sure
• 17:18
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• 17:18
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• 17:18
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• 17:18
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• 17:19
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• 17:19
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• 17:19
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• 17:19
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• 17:19
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• 17:20
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• 17:20
  LinkedIn.
• 17:21
  Thank
• 17:21
  you
• 17:21
  very
• 17:21
  much
• 17:21
  and
• 17:22
  have
• 17:22
  a
• 17:22
  great
• 17:22
  rest
• 17:22
  of
• 17:22
  your
• 17:23
  week.
• 17:24
  Let's
• 17:24
  get
• 17:24
  started.