The Recession has Begun, and Costco Proves It | Redefining Diversification feat. Paisley Nardini

In this episode of the Market Misbehavior podcast, Dave is joined by Paisley Nardini, Managing Director and Head of Multi-Asset Solutions at Simplify Asset Management. Recorded May 12th, 2026Paisley shares her perspective on why the traditional 60/40 portfolio faces significant challenges in a modern regime defined by sticky inflation and positively correlated stock-bond movements. We dig into why diversification requires more than just two asset classes, the tactical role of "liquid alternatives" like trend following to manage volatility, how hard assets can act as a natural hedge against inflationary pressures, and why Paisley believes "volatility is the price of entry" for long-term investors who want to participate in the market successfully.If you enjoyed this podcast, please give Paisley's a shot! You can catch her and her co-host Josh Flade talking about improving investor resilience at: https://buildingbetterportfolios.my.canva.site/📈 Topics Covered• The breakdown of stock-bond diversification in a high-inflation regime• Why the Fed is now "between a rock and a hard place" regarding interest rate policy• Why the "Fed Put" is no longer a reliable safety net for investors• Liquid alternatives and systematic trend following as essential negative correlation hedges• Hard assets (commodities/real assets) as an underrepresented inflation protection• Understanding the "everything else" category: Liquid alts, global macro, and tail-risk strategies• The educational gap in alternative investments for retail and advisor portfolios• Defining the "active" fee budget: Paying for risk management versus paying for traditional stock picking🎓 Take Dave’s FREE course on behavioral investing: https://www.marketmisbehavior.com/freecourse📘 Check out Dave’s recommended reading list: https://www.marketmisbehavior.com/readinglist👉  Follow Dave on X: https://x.com/DKellerCMT👉  Follow Dave on Bluesky: https://bsky.app/profile/dkellercmt.bsky.social👉  Follow Dave on Facebook: https://www.facebook.com/marketmisbehavior👉  Follow Dave on Instagram: https://www.instagram.com/marketmisbehaviorThe content in this presentation should not be considered as a recommendation to buy or sell any security. All information is intended for educational purposes only and in no way should be considered as investment advice.