In this episode of the Market Call Show, we're discussing mastering long-term investing and balancing risk and return through strategies like adjusting asset allocation over time. With large-cap sell offs recently, we highlight opportunities in small-cap stocks and look at the fundamental analysis of these businesses. Drawing my experience as a portfolio manager, I'll share some of the tools I've used, like quantitative analysis that can help safeguard your hard-earned capital before uncovering economic sectors with untapped potential, such as property and casualty insurance. Wrapping up, we dive into way you can optimize outcomes by staying grounded in market turbulence, making increment adjustments, and embracing diversification across sectors and investment styles for stability. SHOW HIGHLIGHTS I discuss the importance of long-term compounding and protecting investments during market volatility, advocating for a balance between steadier and more volatile investments in portfolios.We talk about recent market trends indicate an overvaluation of large-cap companies, suggesting that small caps may offer promising opportunities for investors.Emphasizing the significance of risk management, I draw on insights from my book, The Financial Freedom Blueprint, to highlight the necessity of sound economic principles and fundamental analysis.Investment expert Jim Rogers is cited, stressing that no single asset class is perfect and that a thorough risk assessment is essential for aligning investment goals with risk tolerance.I explore the strategic investment approach within the property and casualty insurance sector, recommending a blend of active and passive strategies for a diversified, all-weather portfolio.The importance of probabilistic thinking and incremental strategy adjustments is highlighted as a means to navigate the financial landscape successfully.Small-cap companies are identified as having rising potential, with quantitative analysis being a useful tool for building well-balanced portfolios.Fundamental metrics and scoring methodologies are recommended for better investment decision-making, rather than relying solely on indexing.I stress the need for a steady pace in investing, focusing on long-term fundamentals rather than reacting to market volatility. PLUS: Whenever you're ready... here are three ways I can help you prepare for retirement: 1. Listen to the Market Call Show Podcast or Watch on Youtube One of my favorite things to do is to talk with smart people about investing, financial planning, and how to live a full life. I share this on my podcast the Market Call Show. To watch on Youtube – Click here 2. Read the Financial Freedom Blueprint: 7 Steps to Accelerate Your Path to Prosperity If you’re ready to accelerate your path to prosperity, the Financial Freedom Blueprint lays out a proven system for planning and investing to secure your financial independence. You can get a personalized signed hardcover copy – Click here 3. Work with me one-on-one If you would like to talk with me about planning and investing for your future. – Click here TRANSCRIPT (This AI transcript is provided for reference and may contain errors) Louis Louis Llanes. Here I am going to be discussing and riffing on something that I haven't talked about in a while, and that's protecting your money. Today I was looking at the market and we saw a pretty good sell-off one of the worst sell-offs we've seen in quite a while and actually what's happening is to be expected. It's something that I've been talking about. I've been talking about how the valuation of the larger cap companies many of the companies that have been the darlings have really gotten out of whack, really, and we're starting to see a correction. I was talking to a friend of mine and I was telling him about how I saw small caps being a relatively good opportunity. I think there's a lot of skepticism out there sometimes when you have these big locations in the market, and it's understandable, because it's easier to follow the crowd. Following the crowd is something that we naturally have an instinct to do, especially when it comes to investing. One of the worst things that we ever want to do is to be in a situation where we feel like we're missing out or kind of the phone feelings that we can have that really create a feeling of angst when we see certain investments going up One of the things that's interesting about the investment world, at least in the public markets, is that you see marking up and increases in values happening slowly, and then, whenever you have a correction, it tends to be quicker and some people feel surprised by that. So, as a long-term investor who is focused on the economics of investments for the long run, based on cash flows, we can have periods of time where there's a dislocation or there's a disconnect between what we're seeing in the markets and what sound fundamental analysis ...
