How the Rich Employ Alternative Investment Strategies – Interview Jeremy Louder of QuadWealth

On Friday I chatted with Jeremy Louder, the Founder of QuadWealth.  Jeremy and his team work with individuals and financial planners to educate them on “less understood” wealth management strategies – that is, rather than the stock/bond/mutual fund mantra we hear touted by mainstream financial planners, Jeremy’s group focuses on alternative strategies that are employed by people who are actually wealthy.

His take – which holds a lot of merit, I think – is that the truly wealthy do not pile in and out of stocks and mutual funds to grow their wealth.  Instead, they typically own assets that produce actual cash flow (who would have guessed, right?!) and other investments that are not in the playbook of your average investor.

In this interview, Jeremy shared his outlook on:

• The stock market – Why he believes it’s very dangerous to be invested in the market at this juncture.  Sure, the market’s gone up consistently over the past 100 years – but does that mean it will go up over the next 10?  Why today’s market is less pure and more manipulated than the stock market of years’ past.

• The internet’s effect on trading/investing – Why it has turned the stock market into a giant casino.

• Who’s pushing the “buy and hold” Kool-Aid – And can it still work for you today?

• Your best shot at hedging against inflation/deflation threats – By having productive assets and investment strategies.

• What wealthy investors do, that middle class investors don’t – Key: predictability

• Diversification – Why it’s the path to failure, and why people diversify to compensate for their lack of having a clue!

I enjoyed speaking with Jeremy, and found his approach to be refreshingly built around common sense.  It reminded me how rarely we actually step back and use our heads to think through things when it comes to investing!

(If the widget above is broken, you can use this link to listen to the interview).

If you enjoyed this interview, check out QuadWealth Radio, Jeremy’s free weekly podcast, where he explores these concepts in more detail.

PS – And please let me know how you like this new “podcasting” format!  I’d like to start supplementing our current coverage with “exclusive” interviews like these with interesting folks in the investment world.