Mike Philbrick on Gold, Bitcoin, and Rethinking Diversification Beyond 60/40

In this episode of Excess Returns, we sit down with Mike Philbrick of Resolve Asset Management to discuss why the traditional 60/40 portfolio may no longer be enough, the role of “psychological commodities” like gold and Bitcoin, and how return stacking can change the way investors think about diversification. Mike shares insights on macro regimes, investor psychology, and why these once-fringe assets may now be foundational in building resilient portfolios.Topics Covered:Why the 1982–2020 period was a “golden era” for stocks and bondsHow today’s macro regime challenges traditional diversificationThe case for gold and Bitcoin as portfolio diversifiersDebt, inflation, and the shifting role of scarce assetsWhy lack of cash flows is a feature, not a bug, for gold & BitcoinGenerational differences in crypto adoption and advisor psychologyHow return stacking works and why it matters for investorsThe evolving regulatory and institutional landscape for BitcoinRisks: existential threats, quantum computing, policy changesTokenization, blockchain innovation, and the future of financeMike’s one lesson for the average investorTimestamps:00:00 – Why the 1982–2020 period was a golden era03:00 – Stocks, bonds, and changing correlations07:00 – Debt, inflation, and the macro backdrop10:00 – Gold, Bitcoin, and the cash flow debate14:20 – Why investors resist gold & Bitcoin19:00 – Generational divides and adoption rates23:00 – The evolution of gold and parallels to Bitcoin26:30 – What is Bitcoin? Digital gold vs growth asset28:30 – Career risk flipping: from owning to not owning32:00 – Behavioral biases and implementation frictions35:00 – Sizing matters: avoiding “all or nothing” mistakes36:00 – Market-cap weights and neutral allocations38:00 – Long-term real returns of gold & Bitcoin40:00 – Will Bitcoin and gold compete or complement?43:00 – Portfolio construction: risk-weighting gold & Bitcoin44:00 – Return stacking explained49:00 – Trend following and dead money periods51:00 – Risks: quantum computing, regulation, behavior56:00 – Tokenization, blockchain rails, and innovation1:01:13 – Mike’s one lesson for the average investor