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In Episode 122 of Hidden Forces, Demetri Kofinas speaks with Christopher Cole, the founder of Artemis Capital Management about how to grow and protect generational wealth that lasts a hundred years. Imagine you have the opportunity to grant your family great wealth and prosperity for 100 years. The opportunity is subject to one final choice. You must decide what assets to invest in and maintain that allocation for an entire century without ever changing it. The future of your children\u2019s children depends on your decision. What do you do?

According to Christopher Cole, in order to be successful the hundred year portfolio must be able to navigate the secular booms of the market (1947-1963,1984-2007) while not losing capital during periods of economic contraction, stagnation, and renewal (1929-1946, 1964-1983). In pursuit of this, many investors assemble a varied portfolio of asset classes thinking there is safety in diversification, but in a crisis, such portfolios often collapse right along with the broader markets. Another class of investors believes they can always time the wild cycles of risk when, in fact, they can barely manage the demons of their greed and fear. The greatest threat to a hundred years of prosperity, according to Chris Cole, is neglecting the lessons from long-term financial history and having no true diversification against secular change. Accordingly, the solution is to find assets that can perform when stocks and bonds don\u2019t and boldly size them in one\u2019s portfolio regardless of short term performance. Long Volatility, Gold, Commodity Trend, and Discretionary Global Macro, according to Mr. Cole, should be core portfolio holdings and not just periphery investments. The investor can then apply margin to the risk-balanced portfolio to meet return targets, rather than seek the excess return from components.

The first part of today\u2019s conversation explores the investing landscape in which retail investors and professional money managers alike find themselves in today. Chris and Demetri discuss factors that have led to volatility suppression and the build-up of risk in financial markets.\xa0

During the overtime segment, Chris shares his views on what assets should occupy such a portfolio, in what quantities, and how retail and accredited investors alike might approach the task of building and protecting generational wealth that can last a hundred years.\xa0

You can access the overtime, transcript, and rundown to this week\u2019s episode through the Hidden Forces Patreon Page. All subscribers also gain access to our overtime feed, which can be easily added to your favorite podcast application.\xa0

Producer & Host: Demetri Kofinas

Editor & Engineer: Stylianos Nicolaou

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