In this episode, Trishul and Aaron discuss the risks and rewards of potential investments across various asset allocation decisions. They cover cash, bonds, stocks, options, and other even more exotic instruments. What are the two variables that determine the risk-return profile of a bond? And where do small-cap and international stocks fit into the big picture? And what about the idiosyncratic risk of a single stock versus a diversified basket? If you understand these various risks and rewards, how do you then figure out what is appropriate for your specific situation?
Episode References
MMS - #2. Buying stocks can be fun, but don't fall into these common traps.
MMS - #41. What does academia have to say about what really works when investing in stocks?
MMS - #42. Investment strategies evolve, but is your portfolio stuck in a foregone era?
MMS - #13. Is Real Estate just a real pain?
Graystone Advisor - I sat in cash while the market was up 42%
Graystone Advisor - Buying Stocks For Fun
Graystone Advisor - Netflix Employee Supplemental Stock Options
Investing Forever - Why invest in one thing over another?
Investing Forever - Efficient Market Hypothesis
Investing Forever - Risk, Everywhere
Investing Forever - Why buy-and-hold can save you big
CFA - Setting the record straight on asset allocation
Investopedia - Tax Treatment for Call & Put Options
US 10 Year Treasuries
Max My Interest
Consumer Price Index
What SIPC Protects
FDIC
Why Money Market Funds Break The Buck
Difference Between Preferred Stock and Common Stock
Annual Asset Class Returns
The Case Against Investing In Commodities
Zero-Sum Game
Podcast Description
Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForeve
Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Bay Area Financial Planner with GraystoneAdvisor.com, and Trishul is an East Coast Wealth Manager (InvestingForever.com). MindMoneySpectrum.com and YouTube.