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b'In Episode 75, we welcome Mike McDaniel, CIO and co-founder of Riskalyze. It\\u2019s a special episode, being recorded at the Riskalyze Fearless Investment Summit in Lake Tahoe.\\nPer usual, we start with Mike\\u2019s origin story, but it\\u2019s not long before the guys dive into investments. Meb asks about Mike\\u2019s investment framework \\u2013 how does he think about the world as a practitioner.\\nMike tells us he tries to let the market do as much as possible. One of the biggest things that will lead to success is simply being investing. And because our emotions can trip us up so much, by quantifying risk and then having a better idea of what to expect, we stand a better chance of success.\\nThis concept is what lead to the Riskalyze Risk Number. Meb asks for an overview of what this number is and how it works.\\nMike gives us a great overview of its background and how Riskalyze seeks to quantify risk on a scale of 0-100. (Basically \\u201ccash\\u201d to a \\u201csingle stock.\\u201d) The conversation morphs into how the Risk Number has been further refined over the years, including the amount of historical data included.\\nNext, Meb brings up something Mike once said in an interview, about the two reasons why investing is broken. He asks him to expound. Mike tells us these factors are 1) the psychological pitfalls facing the mom \\u2018n pop investor, and 2) the complex nature of the investing environment (so many products available to the investor).\\nIt\\u2019s not long before Meb brings up a current reality facing advisors: With asset allocation being largely commoditized with a low fee attached, where is the main \\u201cvalue add\\u201d for advisors these days?\\nMike believes that the advisor\\u2019s role is to be the behavioral coach. He has multiple stories about the power of using data and analytics to keeping the investor invested. This leads into the most common mistakes Mike sees that many investors continue to make.\\nIt\\u2019s not long before Meb turns the mic over to the audience (remember, this was recorded in front of a live audience in Lake Tahoe). You\\u2019ll hear:\\n\\nHave Riskalyze numbers proven to be helpful when facing an SEC audit?\\n\\nWhat will be the impetus that gets advisors to enter into the 401k space?\\n\\nMost investors have traditionally relied on bonds to be a stabilizing effect on portfolios, but is the market we\\u2019re in likely to play that role? Given this, how does Riskalyze think about alternative asset classes?\\n\\nIn a world of low expected returns, how does an advisors balance business risk versus the client\\u2019s investment risk?\\n\\nThere\\u2019s plenty more in this episode, including Meb\\u2019s discussion of the impact of fees on various global asset allocations\\u2026 home country bias\\u2026 the challenges of trend-following\\u2026 and of course, Mike\\u2019s most memorable trade. It turns out, he has two, the latter of which is what led to the creation of the Riskalyze concept.\\nWhat were the trades? Find out in Episode 75.\\nLearn more about your ad choices. Visit megaphone.fm/adchoices'