Market Risk and Marketing with Manish Khatta
- Jay Coulter, CFP®, CIMA®
- Sep 16
- 2 min read
The equity markets are shining, with indexes hitting new all-time highs. But as President John F. Kennedy famously warned:
“The time to repair your roof is while the sun is shining.”
That was the starting point for my recent Resilient Advisor Podcast interview with Manish Khatta, CEO of Potomac Funds. We explored two big themes every financial advisor needs to master: how to manage risk in today’s markets, and how to stand out through authentic marketing.
Rethinking the 60/40 Portfolio
For decades, the 60/40 stock-bond portfolio was the foundation of risk management. But Khatta argues that the bond bull market is over, and advisors need to adapt.
Key challenges today:
Rising Correlations: Stocks and bonds moving in the same direction undermine diversification.
Inflation’s Impact: Bonds historically struggle when inflation is above 3%.
Diversification Dilemma: In the last decade, many traditional diversifiers have failed to protect or add value.
Advisors face a choice: cling to the old 60/40 mantra—or adopt new approaches to diversification.
A “Moneyball” Approach to Risk Management
Instead of relying on outdated tools, Khatta recommends a barbell strategy:
On one end: low-cost, passive index exposure.
On the other: a tactical, risk-managed sleeve.
This is where Potomac’s Composite System shines. By blending multiple, uncorrelated market indicators, it avoids the pitfalls of relying on a single signal.
Khatta compares it to the championship Chicago Bulls of the 1990s—you wouldn’t want five Michael Jordans on the court. You need a Rodman for rebounds and a Pippen for defense. The same goes for building a robust investment process.
The result? A binary, data-driven system that answers the essential question: Should we be invested in the market or not? It’s a “Moneyball” framework that emphasizes math over emotion.
Marketing Lessons from Potomac Funds
Beyond investing, Potomac has become known for its bold marketing—earning speaking spots at major conferences. Their success came from authenticity and a willingness to break industry norms.
During the pandemic, with everyone working from home, Potomac launched what Khatta calls a “content bazooka”—producing 5–7 original pieces per week. With just five employees, they outpaced firms with massive wholesaler armies.
Their marketing playbook boils down to three rules:
Data Over Feelings – Let the numbers drive decisions.
Own Your Personality – Don’t hide behind generic “advisor” content. Business is personal.
Persistence Pays – Keep creating, even if no one is watching at first.
And most importantly: don’t fear the haters.
“If your marketing isn’t generating criticism, it’s probably not effective. They know me, I don’t know them—so who’s really winning?” – Manish Khatta
From sending branded whiskey bottles to posting Altoids on the conference table, Potomac rejects the cliché “lighthouse and compass” imagery for something authentic and memorable.
Final Word
Advisors today must master both sides of the equation:
Build resilient portfolios that reflect today’s market realities.
Market themselves authentically in ways that actually cut through the noise.
Khatta and his team at Potomac are proof that doing both—boldly and consistently—creates staying power in a competitive industry.
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