This podcast provides an overview of Modern Portfolio Theory (MPT) and its focus on diversification to manage risk without significantly sacrificing returns. It explains how combining assets like global equities, government bonds, and gold—each with different correlations—can lower the overall volatility of a portfolio. Multiple allocations are considered, from conservative mixes (heavier in bonds) to more aggressive combinations (greater equity exposure). Using historical data, the author calculates expected returns, volatilities, and drawdowns, but cautions that past performance may not predict future results. Despite these limitations, the blog underscores the importance of low-cost ETFs, regular rebalancing, and maintaining a well-diversified portfolio to mitigate extreme losses. Finally, the author clarifies that the post reflects personal views, not tailored investment advice.