Hedging, Happiness, and the Future: Navigating the Financial Unknown

This week on our show, we had the pleasure of hosting Mowry “Mo” Young, financial advisor extraordinaire and master of making money work for life. With over 27 years of experience, managing nearly half a billion dollars in assets, and a client retention rate that would make any business proud, Mo shared his deep insights on hedging, happiness, and surviving the financial chaos we see today.

The Confidence Formula: Less Stress, More Success

Mo introduced us to his “Confidence Formula,” a unique approach developed by his firm, Wealthcare Capital. The formula emphasizes aligning clients’ financial capabilities with their personal goals and priorities, making money a tool to enhance life rather than an end goal.

Mo challenged the industry’s hyperfocus on returns, asking: “How can you call yourself a return manager if you’re spending most of your time with clients, not data?” Instead, he dedicates 90% of his time to helping clients live their best lives, proving that the true measure of wealth is how much joy it can bring.

It’s an approach echoed by Carl Richards, a thought leader in behavioral finance, who often reminds us that “money is a tool to support what matters most, not the goal itself.”

Recognizing Global Risks: Don’t Be Blind to the Unseen

Economist Nouriel Roubini, who famously predicted the 2008 financial crisis, often warns that ignoring systemic risks is a recipe for disaster. Mo echoed this sentiment, pointing to today’s global financial landscape: parabolic debt growth, growing populism, and the rise of the BRICS alliance as major disruptors to the current system.

Mo stressed the need to hedge against unpredictable risks, saying, “Smart investors know they don’t know what they don’t know.” His advice resonates more than ever as geopolitical and economic trends continue to reshape the global economy in ways that are impossible to predict fully.

Gold and Silver: The Time-Tested Safe Havens

To hedge effectively, Mo recommends allocating a portion of portfolios to physical precious metals like gold and silver. Unlike many financial assets, these have no counterparty risk, making them a secure store of value in uncertain times. He points to the significant gold accumulation by central banks and silver’s rising demand despite limited supply as strong indicators of their ongoing relevance.

Ray Dalio, a prominent investor, has long championed gold as a cornerstone of any well-rounded portfolio, describing it as “a hedge against the debasement of fiat currencies.” Mo’s emphasis on a 10% allocation each to gold and silver aligns with this perspective, ensuring that investors are prepared for asymmetric opportunities and downside protection.

Why Investors and Advisors Need to Think Differently

In today’s world, ignoring risk is about as smart as leaving the house without an umbrella when the weather forecast says “torrential downpour.” Rising inflation, global tensions, and a shifting economic landscape demand strategies that go beyond the basics.

Investors need real, tangible assets like precious metals that don’t rely on third-party assurances. They’re not just hedges; they’re lifeboats in uncertain waters. For financial advisors, staying ahead of the curve means helping clients protect their wealth while still pursuing their goals. Offering resilience in the form of diversification and adaptability isn’t just smart, it’s essential.

The future may be a mystery, but building portfolios with flexibility, foresight, and a touch of humility is a strategy that never goes out of style. After all, as Mo reminds us, it’s not about knowing the future, it’s about being prepared for it.

Neptune Global

*********