Are Index Funds Enough in a Volatile Market? The Case for and Against Active Strategies

**SPEAKER_1** (0:01)
This is Invest Talk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Justin Klein.

**Justin Klein** (0:16)
Good afternoon, fellow investors, and welcome back to another week of Invest Talk. This is our Monday, June 8th, 2026 edition. There's a lot going on in today's market. Big sell-off on Friday, bounce today. Is it enough to, I don't want to say cancel out, but make Friday relatively irrelevant in the grand scheme of things? We're going to get to that and much, much more on today's show, but most importantly, it will be all about what's on your mind. I can bring topics all day long, but as usual, it's really your show. This isn't my show, this is your show, whatever you have top of mind, please bring it to here by giving the number a call. You know the number, it's always 888-99-CHART, and you can call 24 hours a day, seven days a week. We love your live calls, but if you're listening after hours, no big deal. We are excited to hear from you. We're excited to know what is on your mind. Now, heads up, our next Wealth webinar is set for Tuesday, June 30th from 12 to 1 p.m. Civic time title is Beyond the Yield, How to Invest for Your Income Needs.
Okay, we're going to, and if you want to register, just head over to besttalk.com, it's free to register. Now, just to be able to talk about today's Mark Performance and run down the show topics for the hour. But first, let's tackle this caller question now.

**SPEAKER_3** (1:45)
Long-time listener, just curious your opinion on ticker IIPR. I'm looking to add some additional re-exposure to my portfolio, and I've had my eye on this for quite a while, nearly a year I've been watching it, and just curious what you think at these levels. Look forward to hearing it on the podcast. Thanks again. Bye.

**Justin Klein** (2:06)
All right, looking at IIPR. I think we used to own for clients a long time ago, but it fell out of bed. It had some issues with some defaults. They own cannabis. They own cannabis facilities, grow facilities, dispensaries, things like that. They go and they get these facilities licensed in wherever they're at, and they're able to charge above average rents. Anything within the cannabis space also runs a little bit higher risk because some of it's the type of people in that industry, the volatility of the business, there's regulatory issues that they can run into, all of that. And so they've had some defaults. But recently starting to rally, things are improving, earnings expectations are improving up to $7.55 cents in FFL funds from operation for next year on a $59 stock. And if you look at the current dividend yield, 12.8% which is pretty high. But as always, when you see above average yields, you're paying, you're getting up above average risk. So you are getting exposure to that. The question is, is it good risk versus reward? It's never about avoiding risk. You're never going to get rid of the risk. It's about making smart, calculated risks.
Good risk versus reward decisions. That's what all investing is about. That's the frame of mind you have to go into every decision in the investment world about. What are the risks? What are the rewards? Is this a good risk versus reward decision?
And the White House recently rescheduled cannabis. It makes a lot of their businesses that IPR rents to be able to get more financing, get bank financing, bank accounts, things like that, that I think is going to help them overall lower their default rate. And once again, you're seeing that in the funds for operations. It's supposed to be at 3% this year, 8% next year.
And to me, that is great. That is the reason I think this is a good risk versus reward. It's still high risk, but I think it is a good risk versus reward. The chart has been improving as of late, and so I give IAPR a thumbs up. Now, we had a great show on Friday. We looked into the story about defense stocks in 2026 Now, the global security boom creates long-term investment opportunity. We also answered a listener question on PODD, Insulet Corp, around insulin. Is insulin business good or bad? That's something that we answered, and if you happen to miss it, go check it out. The best way to get every show is to follow InvestTalk wherever you get your podcast. Now, we have a lot of ground to cover over the next 45 minutes or so. When time permitting, we want to get to all of it. Our main focus point is about index funds, and is it enough to own just index funds in a volatile market? The case for and against active strategies, and what to look for if you are going to pick an active strategy. What are the signs that this is a strategy to maybe potentially pay up a little bit for? Beyond an index fund, we will take a look at that. We also have other topics on the docket. One is, I want to look at the recent developments within strategy. Remember, it used to be called micro strategy, now it's just strategy, all around, basically a levered Bitcoin strategy, investment strategy, whatever you want to call it, and it's very controversial.