In this Perspectives episode of The Money & Meaning Show, Jeff Bernier explores how long-term investors can maintain confidence amid economic uncertainty. He outlines the frequency of recessions across a typical retirement span and emphasizes the importance of diversification, revisiting foundational investment principles. Drawing on insights from Joe Wiggins' recent blog, Jeff addresses the dangers of "line-item thinking" and highlights how a holistic approach to portfolio construction can lead to better outcomes over time.
(Note: This episode was recorded on April 1, 2025. Charts in the broadcast are as of March 31, 2025.)
Topics covered:
- Historical frequency of recessions and their relevance to retirement planning
- Life expectancy and planning for longevity in retirement
- Why long-term investment policy should remain steady through market noise
- Economic uncertainties under the new administration
- The risks of reacting to short-term market predictions
- Concept and consequences of "line-item thinking"
- Performance comparison of U.S. vs. international equities
- Asset class analysis: small value vs. large core equities
- Role of bonds in a diversified portfolio during downturns
- Key takeaways from Joe Wiggins' blog on behavioral finance
- Building resilient, anti-fragile portfolios for long-term success
- The real risk: inability to meet financial goals
- The importance of thinking holistically about portfolios
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