GM31: The Art of Volatility Investing ft. Dave Dredge

Today, Dave Dredge, CIO at Convex Strategies, returns for a conversation on volatility investing and why he believes the 60/40 portfolio is wrong. We discuss why big pension funds have been suffering major losses and what Dave means by living in a “Sharpe World”, self-organized criticality and how Central Banks have been handling inflation, the relationship between volatility and liquidity and importance of understanding the timeframe that you are trading within. We also discuss how Dave uses asymmetry to stay prepared for the future and the pointlessness of forecasting, how constructing an investment portfolio is like a football match and how Dave’s racing car analogy can help you become a better investor, cheap vs. expensive volatility and the importance of convexity, what the future might hold for volatility and much more.-----EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to [email protected] please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Cem on Twitter.Follow Dave on LinkedIn.Episode TimeStamps: 00:00 - Intro03:00 - About Dave and his work06:04 - Are big pension funds failing?11:21 - A fragile world19:54 - How Dave thinks about liquidity25:20 - What does cheap actually mean?34:23 - What might be next for volatility41:43 - The next Korean ship builder?46:19 - Is forecasting pointless?51:00 - Improve your convexity = improve your life59:37 - What is...