Kardec TraderFutures Trader. Creator of The Midas Touch. Mentor

The BIGGEST FLAW In Traditional Investing🚨

10 Jun 2026 · 1 min

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In this commentary, the speaker critiques the prevalent age‑based “pie chart” advisory model used by many traditional asset managers, where a 60‑year‑old investor is typically allocated around 60% bonds and 40% stocks (or similar 70/30 splits). He argues that the assumption that bonds act as a safe, downside‑protective asset proved false during the 2022 inflation shock: bonds fell more sharply than stocks, causing a double‑hit for retirees who relied on the expected inverse relationship. Using a simple chart and stage‑analysis, he shows that bonds had already peaked and were entering a Stage 4 decline, warning investors to avoid being positioned in bonds as the decline unfolds.

Chapters

A lot of, you know, traditional asset managers, traditional advisors, like what we talked about in Words of Wisdom, they're quote-unquote pie chart advisors. If you're 60 years old, they'll typically have you maybe 60% bonds, 40% stocks, maybe 70% bonds, 30% stocks, and they'll tell you bonds are safe. Are they really safe though? Well, looking at the evidence here, when inflation hit, that broke all these advisory models. Bonds dropped more than stocks in 2022. So a lot of people in retirement got killed because stocks dropped a lot and then bonds dropped, which is supposed to be the balancing part of the portfolio. The models expected, you know, bonds wants to go up while stocks drop. But no, if you looked at a simple chart and stage analysis here, you can tell that bonds was topping out as well and entering stage 4 decline, and you want to be out of the way for that decline.