Don't Let Your Ego Drive You to Make Bad Decisions | Harley Bassman

Dan and Corey kick things off by discussing bitcoin hitting a new multiyear high. They also critique a popular bullish argument for bitcoin, which is based off the U.S. dollar collapsing. After, they talk about the S&P 500 Index surpassing 5,000 for the first time ever and whether this level is sustainable in the long term. (0:40) Next, Harley Bassman of Simplify Asset Management joins the conversation and explains a concept called "convexity." He covers the three kinds of risk in bond investing, why short convexity is always lurking during market downturns, and why negative convexity is so difficult for investors to process. (24:53) Harley also goes into detail on mortgage-backed securities funds. He describes what mortgage bonds are, why they yield more than corporate bonds, and how the Federal Reserve plays a huge role in all of this. (32:20)  Lastly, Harley talks about Simplify and how it offers a unique service by jamming derivatives of all kinds (futures, options, etc.) into ETFs so civilians can invest in them. He also discusses what it was like working at Merrill Lynch during the great financial crisis, gives general investing advice, and explains what pin risk is. (48:55)