How Long-Term Investors Actually Think About Risk with Ben Carlson
5/20/20261 hr 1 min
#279: Learn to handle market volatility and build long-term wealth in a world dominated by AI disruption, market fear, inflation concerns, and nonstop financial noise. Chris and Ben discuss why investing remains psychologically difficult, how to think about global diversification, when to reevaluate your portfolio, and the risks most investors still overlook. Ben Carlson is the Director of Institutional Asset Management at Ritholtz Wealth Management and the author of five books on investing, including his newest, Risk and Reward. He's the creator of the blog A Wealth of Common Sense and co-host of the Animal Spirits podcast. Link to Full Show Notes: https://chrishutchins.com/risk-market-volatility-ben-carlson Partner Deals Thrive Market: 30% off your first order of organic groceries + a free $60 gift Upwork: Free job posting to find, hire, and pay top freelance talent DeleteMe: 20% off removing your personal info from the web Superhuman: Free month of the fastest and best email with code ALLTHEHACKS Gelt: Skip the waitlist on personalized tax guidance to maximize your wealth For all the deals, discounts and promo codes from our partners, go to: chrishutchins.com/deals Resources Mentioned Ben Carlson: Website | X Book: Risk and Reward Podcast: Animal Spirits A Longer Life Can Lead to Financial Concerns, and More Questions The Millionaire Next Door by Thomas Stanley and William Danko Roger Federer's 2024 Dartmouth Commencement Address ATH Podcast #128: The Psychology of Money with Morgan Housel #174: Secrets of Success in Life and Work with Legendary Silicon Valley Investor Andy Rachleff Newsletter Leave a review: Apple Podcasts | Spotify Email for questions, hacks, deals, and feedback: podcast@chrishutchins.com Full Show Notes (00:00) Introduction (00:49) Why Investing Is Still So Hard for Most People (01:37) How Today's Media Makes Markets Feel Scarier Than Ever (02:51) The Core Idea Behind Ben’s New Book (05:10) What Japan's Lost Three Decades Teach Long-Term Investors (08:50) Why You Need Exposure Beyond Your Home Market (10:18) Will AI Reshape Global Markets or Just U.S. Stocks? (14:01) Could a Dot-Com-Style Crash Happen Today? (15:57) Why AI Could Still Trigger the Next Bubble (17:57) Focus on What You Can Control, Not What You Can't (19:16) The Worst-Case Inflation Scenario of the 1970s (21:47) How to Think About Inflation in Today's Economy (23:36) The Inflation Hedges Most People Already Have (26:58) How to Filter the Noise and Stay Long-Term (33:31) The Penalty Kick Study and Why We Hate Doing Nothing (35:08) When It's Actually Time to Reevaluate Your Plan (36:49) Planning Your Career and Money for an AI Future (43:33) Why Optimism Is a Long-Term Investing Edge (47:25) The Tax Alpha Most Investors Are Missing (50:05) Applying These Lessons Closer to Retirement (51:53) The Risks Most Investors Forget to Plan For (56:50) The First Move to Rethink Your Risk Profile Tonight (59:42) Where to Find Ben and His New Book Connect with Chris Newsletter | Membership | X | Instagram | LinkedIn Editor’s Note: The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. Learn more about your ad choices. Visit megaphone.fm/adchoices
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First 90 secondsChris Hutchins· Host0:00
For most of my investing life, I've thought of risk as the thing to manage down. But risk isn't the cost of long-term investing, it's the reason long-term investing pays off in the first place. Without risk, there's no premium. And without the premium, there is no compounding worth talking about. The work isn't to eliminate risk, it's to choose the right kind, the right shape, and carry it long enough. So today, Ben Carlson and I are walking through what nearly a century of market history, The Great Depression, the dot-com bust, 2008, actually teach us about handling volatility, the three dimensions of risk every long-term investor has to balance, the inflation hedges most people don't realize they already have, and where the real tax alpha lives in 2026. I'm Chris Hutchins. If you wanna keep upgrading your money points in life, click follow or subscribe. Ben, I know most people know basic investing advice. Diversify, keep your costs low, don't panic, think long term. Why is it still so hard for people?
Ben Carlson· Guest0:58
I think just because it takes so long. Real success in the markets and reaching your financial goals for most people, unless you hit the lottery, right? You sell a business, you get this amazing return in crypto or something that goes crazy in a short period of time. Most people, it takes a long time to like reach your financial goals, whatever they are. And so I think this idea of getting rich slowly is just really hard for people, especially just because of the society that we live in today where everything has to be on demand. I can listen to music I want right now. I can get whatever I want on streaming right