Fritz Folts of 3EDGE Asset Management - Multi-Asset Investing

Orion's The Weighing Machine

Investing has become a delicate balance between opportunity and risk. The potential for substantial gains is undoubtedly enticing, but the inherent volatility and unpredictability can be unnerving. Furthermore, the emotional rollercoaster that accompanies market volatility is another challenge.

In this episode, Rusty and Robyn talk with DeFred "Fritz" Folts. Fritz has over 40 years of experience in the investment management industry. He was one of the co-founders of 3EDGE Asset Management, serving as the Chief Investment Strategist and member of the Investment Committee. Before 3EDGE, Fritz was one of the first team members at Windward Investment Management, a pioneer in constructing globally diversified portfolios utilizing index Exchange Traded Funds (ETFs).

As an ETF strategist, Fritz talks to Rusty and Robyn about multi-asset investing and how to do it well. He also speaks about managing investment risk and his market outlook for multiple asset classes.

Key Takeaways

• [03:06] - The experience Fritz has in managing investments.
• [04:43] - 3EDGE Asset Management's investment approach and philosophy.
• [07:14] - How 3EDGE incorporates investor psychology into their model.
• [09:03] - How advisors use the 3EDGE strategies on behalf of their clients.
• [11:41] - What 3EDGE's tactical multi-asset approach looks like.
• [14:40] - Why 3EDGE focuses so much on managing investment risk.
• [17:01] - Differences between total return and ESG strategies.
• [19:55] - 3EDGE's market outlook for all asset classes, including crypto.
• [28:01] - Fritz's take on how artificial intelligence could impact investment management.
• [30:10] - Fritz's favorite investment idea.
• [31:44] - How Fritz remains physically and mentally healthy to perform well.
• [35:13] - The people for whom Fritz is professionally grateful.
• [36:52] - Fritz's recommendations for content.

Quotes

[05:54] - "Markets are not completely random. They're driven by the cause-and-effect relationships that impact equities, bonds, commodities, and currencies across the globe. And these relationships are interrelated." ~ DeFred "Fritz" Folts

[06:37] - "There's more risk out there than people understand. So, our approach to managing that risk is to be tactical, meaning we make changes to the portfolio when our investment outlook changes and are always globally diversified." ~ DeFred "Fritz" Folts

[15:40] - "It's really difficult to hang in there as an investor when you're watching your portfolio and your net worth decline. Having to live through that is hard." ~ DeFred "Fritz" Folts

Links

• DeFred "Fritz" Folts on LinkedIn
• Fritz Folts on Twitter
• 3EDGE Asset Management
• 3EDGE Asset Management on YouTube
• 3EDGE Orion Spotlight Paper
• Fritz Folts’ Recommended Reads
• Your Saving Grace by Steve Miller Band
• Stephen Cucchiaro
• Windhaven Investment Management
• Charles Schwab
• The Origin of Wealth by Eric Beinhocker
• The Fed Unbound by Lev Menand
• The Price of Time: The Real Story of Interest
• Meditations by Marcus Aurelius
• The Obstacle Is the Way by Ryan Holiday
• The Artist Behind Fritz’s Cow Painting

Connect with our hosts

• Rusty Vanneman
• Robyn Murray

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1640-OPS-6/15/2023