#54 – Phillip "Felipe' Toews - Author & Founder/CEO of Toews Asset Management on The Behavioral Portfolio, Long-Duration Risk, and Why the 60/40 Model Breaks When History Matters (recorded 12/15/25)

In this episode, Phillip "Felipe" Toews, author of The Behavioral Portfolio and a long-time advocate for risk-aware investing, joins Jim Worden and Paisley Nardini for a deep, historically grounded conversation on why conventional portfolio construction often fails investors when it matters most. Drawing on decades of market history, Phillip explains how long-duration bear markets, not short-term volatility, create the greatest behavioral and financial risk for investors and advisors alike. From the Great Depression to multi-decade bond bear markets, Phillip challenges recency bias, questions the foundations of the 60/40 portfolio, and outlines why advisors must think like chief risk officers first. The discussion explores behavioral finance, portfolio design, hedged equity strategies, adaptive fixed income, and why proactive communication, not reactive reassurance is critical to long-term client success. What you’ll learn• Why the 60/40 portfolio is a historical accident not a true design framework• How long-duration bear markets reshape investor behavior and decision-making• Why recency bias causes advisors and clients to underestimate real risk• How rebalancing can increase drawdowns in severe market regimes• What “left-tail risk” really means for real-world portfolios• Why advisors must proactively discuss worst-case scenarios before they happen• How hedged equity strategies can preserve upside while limiting catastrophic loss• Why behavioral risk often matters more than market risk Chapters03:00 — Phillip's journey: from Kansas to asset management and risk mitigation08:00 — Why investor timing destroys returns, even in good strategies13:00 — The Great Depression, bond bear markets, and what history really shows19:00 — Why the 60/40 portfolio fails during long-duration drawdowns25:00 — Rebalancing myths and behavioral breakdowns in severe markets31:00 — Rethinking portfolio design: cutting the left tail without killing upside37:00 — Hedged equity, adaptive fixed income, and managing uncertainty43:00 — Why advisors must act as chief risk officers49:00 — Communicating risk before markets fall, not afterGuestPhillip "Filipe" Toews, Founder & CEO, Toews Asset Management and Author of The Behavioral Portfolio HostsJim Worden, Chief Investment Officer, WCGPaisley Nardini, Portfolio Manager, Simplify Follow usLinkedIn: The Wealth Consulting GroupX (Twitter): @WealthCGYouTube: @thewealthconsultinggroup Making Life Better at The Wealth Consulting GroupIf you’re ready to see how WCG helps advisors grow, subscribe for insights, updates, and resources built to make your practice, and your life better.Subscribe at bit.ly/wealthcg