Cullen Roche on the Art of Building a Perfect Portfolio

The podcast explores the complexities of optimal portfolio construction, questioning traditional strategies like the 60-40 portfolio in light of recent market volatility. Cullen Roche, founder of Discipline Funds and author of "Your Perfect Portfolio," emphasizes the need for personalized investment strategies tailored to individual needs and risk tolerance. He challenges the reliance on standard risk profile questionnaires, noting that people's stated risk preferences often differ from their actual behavior during market downturns, such as during COVID. The conversation covers assessing a client's income stability as a fixed-income asset and the role of time horizon in investment decisions. Roche also touches on the momentum factor in tech stocks and the trend-following investment strategy as truly uncorrelated assets.