The Money and Meaning Show

November Perspectives: The Self-Healing Markets: Lessons from History, Behavior & Diversification

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In this solo episode of Money & Meaning, Jeff Bernier explores how markets have a built-in ability to self-correct, a concept informed by his conversations with longtime colleague Larry Swedroe. Jeff ties together research from Joe Wiggins and Jason Zweig to explain how behavior, concentration risk, and market history reveal important lessons for investors. He also revisits the importance of broad diversification and TandemGrowth’s behavioral “bucket approach” for supporting client confidence in uncertain times.

Topics covered:

  • Behavioral traps investors face in fast-paced market environments
  • Joe Wiggins’ perspective on making slow, consistent, and infrequent decisions
  • Larry Swedroe’s concept of the self-healing mechanism of markets
  • How falling valuations increase expected future returns
  • Historical periods when stocks underperformed and rebounded strongly
  • Examples of self-healing in asset classes like value stocks, credit, private credit, and reinsurance
  • Jason Zweig’s analysis of AI-driven capital spending by big tech firms
  • The dangers of concentration risk—including going to all cash
  • Benefits of broad diversification across public and private markets
  • How the “bucket approach” helps reduce panic and support long-term strategy

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    Useful Links:

    •  Jeff Bernier on LinkedIn
    •  TandemGrowth Financial Advisors

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      Disclosures: This podcast is for informational purposes only and should not be considered tax or legal advice. Please consult your tax advisor for personalized guidance.

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