Episode 104: Normal Returns, Broader Markets, Sexy Bonds and Lasagna With Phil Blancato
Stuff About Money They Didn't Teach You In SchoolShow Notes
Erik Garcia, CFP®, ChFC®, BFA™, welcomes back Phil Blancato for their annual market conversation, now a tradition on Stuff About Money They Didn't Teach You In School. Phil is Chief Market Strategist at Osaic Wealth, a regular on Fox Business, and an experienced portfolio manager who brings equal parts insight and humor, including a lightning round that somehow turns the 2026 market into a lasagna and ends with a debate on why pasta made in Italy is superior.
Phil’s core headline for 2026 is a return to more normal market behavior: broader participation beyond a handful of mega-cap names and more average equity returns than the outsized gains investors have gotten used to. They unpack what a "defining year" for AI actually means, including winners, losers, and the infrastructure and energy needed to power the buildout, plus how productivity gains could change work and life. The conversation also hits international’s resurgence, why bonds are "sexy" again, and the discipline of staying invested through scary headlines. Phil closes with what keeps him up at night, with debt and renewed inflation risk at the top, and a reminder that diversification is the plan when market leadership shifts.
Episode Highlights:
Phil explains how treating colleagues and clients as friends and family has made a 35-year career feel like he's never worked a day in his life. (02:05)
Phil's one headline for 2026: a return to normal market returns with broader participation across sectors. (08:00)
Phil uses "Flippy the fryer," an AI arm completing 200,000 man hours at White Castle, to illustrate real-world AI productivity gains. (15:05)
Phil emphasizes Finance 101: never panic based on headlines, as US economic fundamentals remain strong beneath the noise. (20:00)
Erik highlights his favorite chart showing intra-year drawdowns versus final returns, making the case for staying invested through volatility. (26:28)
Phil believes that AI overdependence is dangerous, pointing to GPS reliance and the Pope's ban on AI-written sermons as cautionary examples. (31:00)
Phil identifies rising inflation and the US debt burden as his top black swan risks for markets. (39:25)
Erik reflects on using AI-driven productivity for leisure, coaching basketball, and spending more time doing what matters most. (45:45)
Key Quotes:
“It's a defining year for AI. What companies can either continue to grow revenue or use AI to be more productive.” - Phil Blancato
“I would say I've always been a big fan of why people like me are successful. We take advantage of when there's a panic in markets, and there's a panic in a software market right now.” - Phil Blancato
“Being paid to wait around. You're getting real return, real income in your portfolio. It gives you safety and security and maybe a chance to see them go up as much as 7% or 8% this year.” - Phil Blancato
Resources Mentioned:
Phil Blancato
Osaic Wealth
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
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