Pro Answers to Your Investment Questions | AWM Insights #213

On this episode of the AWM Insights podcast Mena Hanna, AWM Portfolio Manager, is joined by Brandon Averill, AWM CEO and Senior Private Wealth Advisor, to tackle your questions: from investing in the S&P 500, to a true global portfolio, to markets vs gold and real estate, to interest rates, tariffs, and more. This episode is packed with hard-earned wisdom and actionable, practical advice.

Key takeaways:

• We show how investing in gold 50 years ago would get you a 20x return; but investing in the MSCI World Index with dividends reinvested would have got you a 200x return.

• Interest rates move markets, borrowing, and currencies. Preparation and portfolio resilience matter more than trying to predict the next move.

• Building multi-generational wealth requires adapting to global risks—tariffs, currency shifts, and policy changes—not just favoring domestic assets.

True diversification is the long game

Professional athletes know: one superstar never wins a championship alone. The same goes for building generational wealth. Plenty of investors ask if they should pile into the S&P 500, buy physical gold, or stick with real estate. It’s easy to fall in love with a winning streak, but history proves that a globally diversified portfolio is the foundation for true, enduring growth.

Consider this example: $64,000 invested in gold or real estate 50 years ago would now be worth about $1.3 million. That’s a 20x return—respectable, sure. But the same $64,000 allocated to the MSCI World Index with dividends reinvested? Today, it would be $12.4 million, or almost 200x. This isn’t just about numbers; it’s a story of compounding returns fueled by thousands of revenue-generating companies across geographies and sectors.

Diversifying to thousands of companies avoids the trap of the “lost decade,” those long stretches where gold plateaus or the S&P stumbles. Instead, you’re running a playbook that captures profits whether the ball moves forward in Silicon Valley, Shanghai, or Frankfurt. For multi-generational wealth—the true 100-year family approach—this disciplined breadth is non-negotiable.

Leave the crystal ball at home—plan for interest rate turbulence

Interest rates are the sports world’s weather: sometimes sunny, sometimes stormy—always capable of changing the game. Every week someone wants to know, “Where are rates going?” As shared in the podcast, if we had a crystal ball, we’d use it. But fortune-telling isn’t a strategy worthy of a family legacy.

Interest rate changes reshape borrowing costs, equity valuations, and currencies worldwide. A cut or hike never moves in a straight line from the Federal Reserve to your mortgage—the effects ripple, touching everything from home loans to market returns. As seasoned front office stewards, we focus on building robust portfolios, designed to thrive no matter which way the rates break. Resilience means structuring portfolios so your family’s financial engine isn’t derailed by the next headline or tweet from the Fed.

Mastering global shocks—protecting your 100-year family in any market

The world plays its own game. Tariffs, trade disputes, and currency volatility can squeeze some markets—but international companies adapt, shifting gears faster than a point guard in transition. The lesson: Don’t rely solely on home court advantage. Recent years show that even under threat of tariffs, international and emerging markets have at times outperformed, aided by currency shifts and economic strength abroad. BMW adds a plant, tech companies flex supply chains, consumer brands chase new markets—wealth keeps moving, even if headlines say otherwise.

This is the value of a globally integrated portfolio. You’re not just watching from the sidelines as US policies change; you’re in the game worldwide. That’s stewardship—anticipating shifts, spreading opportunity, and protecting capital against shocks and surprise plays.

The durable advantage of true integration

Building a 100-year family legacy means treating wealth like a championship team: every position matters, every risk is accounted for. Modern proverbs hold true—“You wouldn’t take pitching advice from a golfer.” Integrate, specialize, and stay nimble. Your family isn’t playing for the next quarter; you’re charting a course for generations. At AWM Capital, we’re dedicated to coaching you through the moves that matter, ensuring today’s effort turns into a legacy worth passing down.