Bloomberg Businessweek Weekend – September 12th, 2025

Hosts: Carol Massar, Tim Stenovec
Recorded at: Future Proof Festival, Huntington Beach, California
Theme: Key insights and interviews from one of the year’s most influential wealth management events, with discussions on technology, AI, markets, behavioral economics, private assets, and the evolving role of advisors.

Episode Overview

This special edition of Bloomberg Businessweek immerses listeners in the Future Proof Festival, a high-profile wealth management event that brings together 3,000 financial advisors, executives, and influential voices overseeing roughly $20 trillion in assets under management. The conversations center on how technology, AI, private markets, and behavioral finance are transforming investing and advice. The episode features leading industry guests offering actionable insights on portfolio strategy, Fed policy, the future of AI in finance, and the critical influence of psychology on investor outcomes.

Conference Backdrop: Future Proof Festival

[02:03–08:31]

Key Points

• Unique Event: Future Proof is envisioned as a cultural shift for wealth management, emphasizing inclusivity, breaking from traditional finance norms, and fostering meaningful connections.
  • Matt Middleton (Festival Founder & CEO): “What we're representing here is a shift… people with real buying power want to break up the status quo.” [03:53]
• Family and Experience Focus: For a small fee, partners can join, making the event more approachable and blending business with leisure.
• Event Curation: Tech-driven scheduling ensures valuable networking, aiming for a “magic” attendance cap around 5,000 to preserve the experience.
• Revenue Model: Heavily reliant on sponsorships (70/30 split vs. ticket sales), leveraging branded connection points instead of endless booths.

Notable Quote

“Our hope here is… not just to define it as wealth management, not to define it as asset management or fintech. To bring everyone together… and give them the tools to build a better business.”
— Matt Middleton [04:28]

The Evolution of Betterment: From Robo-Advisor to Advisor Ally

Guest: Sarah Kirschbaum Levy, CEO, Betterment
[08:35–14:19]

Key Points

• Repositioning: Betterment, with $63B AUM and 1M clients, is positioning itself as a tech-forward custodian for modern Registered Investment Advisors (RIAs), not just an automated platform.
• Tech-Advisor Synergy: Early fear from advisors about robos has faded; now, tech attracts young investors and leads them toward eventual advisory relationships.
• AI’s Dual Edge: Advisors both embrace and fear AI; young investors rapidly shifted from seeking advice on social media to using AI within just one year.
  • Sarah Kirschbaum Levy: “They’re all using [AI] and they’re also all terrified… that they’re going to be replaced.” [10:34]
• Changing Client Segments: Younger generations prefer self-service and delightful digital experiences.
• Investment Trends: From ETFs and mutual funds, Betterment’s clients now show interest in blending self-directed investing with managed allocations; only limited demand for crypto (Bitcoin/Ethereum) among its core users.

Notable Quote

“Our audience wanted Bitcoin and Etherium but didn’t want much else. We’re not a gamified crowd—we really do attract the long-term mindset investor.”
— Sarah Kirschbaum Levy [13:53]

Apple, AI, and Crypto: Tech’s Next Moves

Guest: Dan Ives, Global Head of Technology Research, Wedbush Securities
[19:07–28:54]

Key Points

• Apple Upgrade Cycle: New iPhone 17 may surprise investors on the upside, mainly due to pent-up demand and a forthcoming “AI-driven ecosystem”.
  • Dan Ives: “This could be a sneaky upgrade cycle that I think surprises investors on the upside.” [20:26]
• AI Strategy – Still a “Black Cloud”: Apple’s “invisible” AI strategy keeps investors anxious, but big plans may unfold via a partnership with Google Gemini.
  • On Apple’s pace: “There’s a better chance of me playing Ryder Cup Bethpage than any internal AI strategy happening at Apple.” [22:22]
• Crypto Infrastructure: As chairman of a Worldcoin-oriented crypto treasury firm, Ives sees iris-scanning for human verification as essential for the AI era, betting that Worldcoin will set the de facto standard.
• AI Investment Outlook: His ETF (Wedbush AI Revolution) is strictly research-driven; Palantir is his top “Messi of AI” pick, projected to reach a trillion-dollar valuation in 2-3 years.

Memorable Moment

“Just because you say AI 40 times in a conference call doesn’t make yourself an AI name… you have to distinguish the winners and the real ones from the fakes.”
— Dan Ives [28:21]

The Bond Market, Tariffs, and the Fed

Guest: Priya Misra, Core plus Bond ETF Portfolio Manager, JPMorgan
[31:00–40:57]

Key Points

• Resilient Treasuries: Despite surging deficits, aggressive tariffs, and political noise, the bond market remains stable—evidence, Misra says, of a “soft landing” scenario.
• Tariff Impact: Inflation from tariffs has not been as severe as feared—companies are absorbing costs rather than passing them fully to consumers, especially as consumers remain price-sensitive.
• Fed Rate Cuts: The coming rate cut is likely an “insurance cut” due to already restrictive policy and a slowing labor market.
  • Priya Misra: “Interest rate-sensitive sectors are in a weak spot. That’s why that restrictive level of interest rates matter.” [34:27]
• Immigration and Neutral Rates: Changing immigration trends could lower the US’s neutral interest rate—implications for long-term bond yields.
• Investment Advice: Fixed income offers both yield and diversification; investors should consider moderate duration in the 5–10 year range and be open to prudent credit exposure.

Notable Quote

“Fixed income should give you income and diversification. It’s giving you both right now... own fixed income for yield, and then you have to go out the curve.”
— Priya Misra [40:05]

BlackRock, Citi, and Bringing Private Markets to the Masses

Guest: Jamie Magera, Managing Director, Head of US Wealth Advisory and Retirement, BlackRock
[45:10–54:55]

Key Points

• Sector-Defining Partnerships: BlackRock now manages tens of billions for Citi’s wealth clients, reflecting a trend of banks outsourcing investment management to specialists to focus on client service.
• Advisor Priorities:
  1. Tax Alpha: Ultra high-net-worth clients are laser-focused on tax optimization—BlackRock’s direct indexing and custom overlays are seeing fast growth.
  2. Private Markets: Demand is soaring for access to alternatives in wealth and retirement accounts, supported by tools like Preqin data for private market insights.
  • Jamie Magera: “The new portfolio—the portfolio of the future, to fund these longer lives—has to incorporate private assets.” [52:29]
• Retirement Innovation: BlackRock is piloting target-date funds with private assets and guaranteed income options (e.g., LifePath Paycheck).
  • Only 27% of retirees are confident in outliving their savings—a societal challenge private assets and advice aim to address.

Memorable Moment

“Longer lives should be a blessing. They shouldn’t be a challenge. And that’s where guaranteed income comes in… and that’s where more advice comes in.”
— Jamie Magera [54:31]

Navigating Uncertainty, Fed Independence, and Portfolio Strategy

Guest: Barry Ritholtz, Founder & CIO, Ritholtz Wealth Management; Host, Masters in Business
[55:53–67:55]

Key Points

• Fed Independence: The market seems unphased by political threats to the Fed’s independence; pragmatically, it just wants lower rates and is focused on short-term outcomes.
  • Barry Ritholtz: “The stock market is saying: fed independence is a concern, but give us some of those delicious low rates…” [59:26]
• Tariff Anxiety and Noise: Political drama and tariff panic tend to generate more headlines than investment downside; long-term investors best served by staying the course, not timing the market due to political developments.
• Portfolio Construction: Stick to a diversified “core” (the tree), with individual “ornaments” (satellite positions) to satisfy unique client goals, but avoid large, risky bets on trends.
• Private Markets Reality: Only the top 10% of private assets deliver meaningful excess returns; investors should be wary of fees, lock-ups, and lack of liquidity, especially in retirement accounts.

Notable Quote

“If you can’t pick the big winner from AI, pick all the secondary winners… you have 15 years of US outperformance, maybe it’s time to think about broader exposure overseas.”
— Barry Ritholtz [57:09]

The Psychology of Investing

Guest: Dr. Daniel Crosby, Chief Behavioral Officer, Orion Advisor Solutions
[70:16–75:51]

Key Points

• Behavioral Edge: Research shows advisors add the most value by helping clients avoid costly behavioral mistakes—by a factor of seven over asset allocation alone.
• Tech-Assisted Insight: Behavioral assessments and activity monitoring (overtrading, skittishness, reluctance to use an advisor) can predict harmful tendencies, helping guide clients.
  • Dr. Crosby: “People tend to be pretty poor descriptors of their own behavior… We can look at how they act and we can infer from their behavior.” [71:29]
• Do Less, Gain More: The more you trade, the worse your outcomes—set-and-forget and “hot sauce” accounts (small fun bets) are prudent.
• Behavior Change: Education, environment, and encouragement (three E’s) are essential for lasting positive investor behavior.

Notable Quote

“If you want to make more money, you tend to do less. The more people trade, the worse they tend to do.”
— Dr. Daniel Crosby [72:54]

Private Credit, Active Management & AI – Industry Direction

Guest: Jennifer Grancio, Global Head of ETFs, TCW
[76:14–83:27]

Key Points

• Energy Investing: Success in energy for the next decades will come from a diversified, long-horizon view that transcends political cycles, covering both “brown” (oil/nuclear) and “green” power.
• Private Credit Boom: Both institutions and advisors are bulking up on private credit for diversification and yield—interval funds with greater liquidity are appealing, but investor education on risks/illiquidity is vital.
• Active Management: While selective active equity remains tough, money is flowing into active fixed income and thoughtful private credit.
• Role of AI: Advisors are eager for insights and outsourcing tools powered by AI to streamline service and improve results for clients.

Episode Takeaways

• The wealth management ecosystem is rapidly transforming, emphasizing tech integration, more personalized strategies, and opening once-exclusive private markets to broader investors.
• Behavioral insights and disciplined, long-term portfolios are essential to managing volatility and temptation, regardless of headlines or political uncertainty.
• Private markets and tax optimization are top-of-mind for both advisors and clients; “set-and-forget” investing remains hard to beat for most people, despite the allure of “hot sauce” bets.
• The future belongs to adaptable, tech-driven advisors and clients able to balance innovation with timeless investing principles.

Key Timestamps

| Segment | Start | End | Content | |---------|-------|-----|---------| | Future Proof Festival & Event Overview | [02:03] | [08:31] | New wealth management culture, event logistics and vision | | Betterment’s Evolution, AI in Advice | [08:35] | [14:19] | Repositioning as tech platform, AI’s impact | | Apple, AI, and Crypto Outlook (Dan Ives) | [19:07] | [28:54] | Apple’s AI plans, Worldcoin, AI ETF | | Bond Market, Fed, and Tariffs (Priya Misra) | [31:00] | [40:57] | Treasury resilience, inflation, Fed outlook | | BlackRock, Private Markets & Retirement (Jamie Magera) | [45:10] | [54:55] | Partnership model, private assets, retirement innovation | | Fed Independence, Portfolio Advice (Barry Ritholtz) | [55:53] | [67:55] | Political noise, diversification strategy | | Behavioral Economics in Wealth (Daniel Crosby) | [70:16] | [75:51] | Behavioral value, advice for investors | | Energy, Private Credit, and AI Flows (Jennifer Grancio) | [76:14] | [83:27] | Active management, private credit trends, AI |

Memorable Quotes

• “Events should be about the community and shouldn’t just treat the attendees as product.”
  — Matt Middleton [07:48]

• “Technology can really supercharge [advisor-client relationships]. So the smart advisors are saying, how do I embrace it and have it make me better, stronger, faster?”
  — Sarah Kirschbaum Levy [11:15]

• “AI’s invisible… Apple’s kind of on the outside looking in of that AI party where it’s still 10pm.”
  — Dan Ives [23:36]

• “Interest rate-sensitive sectors are in a weak spot. That’s why that restrictive level of interest rates matter.”
  — Priya Misra [34:27]

• “The portfolio of the future… has to incorporate private assets.”
  — Jamie Magera [52:29]

• “You can’t get alpha if you don’t at least lock in beta… 15 years of US outperformance, maybe it’s time to think about broader exposure overseas.”
  — Barry Ritholtz [57:09]

• “If you want to make more money, you tend to do less.”
  — Dr. Daniel Crosby [72:54]

This comprehensive edition of Bloomberg Businessweek offers listeners a front-row seat to the debates, strategies, and new directions animating the global wealth management industry in 2025—with actionable advice, candid insights, and a touch of beachside disruption.