The 'GOAT' portfolio construction framework
The guest presented the 'GOAT' (Great Opportunities and Threats) portfolio as a robust framework to maintain equity exposure while diversifying against systemic fragility.
The argument
The portfolio allocates 84% to the S&P 500, 10% to gold, 5% to Bitcoin, and 1% to quarterly three-month 95-80 put spreads. This structure aims to capture equity upside while using highly convex, non-correlated assets to dampen volatility during market shocks.
The thesis, stress-tested
✓ What validates it
- ✓Outperformance of the GOAT portfolio relative to a pure S&P 500 index during equity drawdowns
▸ Risks discussed
- ▸Bitcoin and gold could become highly correlated during a liquidity-driven market selloff
- ▸The 1% drag from the put option overlay will underperform in a steadily rising, low-volatility market
Hear it yourself
"The gold portfolio consists of 84% S and P, 10% gold, 5% Bitcoin, and a 1% allocation to quarterly three month 95 put spreads on the S and P. It's marginally outperforming the index in 2025, but with decidedly better risk characteristics."
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