Risk Parity Radio

In this episode we answer emails from Mark, Mark and Cody.  We discuss what first Mark learned by investigating JEPI, the history of investing in gold over the past 100 years and how that may affect the data, and potential data limitations in Portfolio Visualizer on very long Monte Carlo simulations. Bonus Links: The Mysterious London Gold Pool:  London Gold Pool - Wikipedia Gold Mining Shares In...

In this episode we answer questions from BuilderMan, Drew and MyContactInfo.  We discuss how to incorporate farmland and other illiquid, income-producing assets in retirement expense planning, the perilous process of trying to manage a portfolio based on expert picks -- here, Ray Dalio -- and why venture capital may not be so smart. And then we discuss the new Risk Parity Chronicles Monthly Roundu...

In this episode we answer questions from Jeff, Geordi and Eames.  We discuss wrangling with a Fidelity advisors and assorted salespeople, the difference between naïve or static portfolio construction versus using crystal balls for that purpose, a modified Golden Ratio-style portfolio, the pitfalls of buy-write funds like JEPI and BALI and a small issue with the website. And THEN we our go through...

In this episode we answer emails from MyContactInfo, Kyle and Eric.  We discuss the pitfalls of retirement tools with help from Newman,  Bob Ross and a contribution question and our old semi-nemesis, TIPS. Link: Bill Bernstein TIPS Ladder Article:  Riskless at Age 104 - Articles - Advisor Perspectives Support the show

In this episode we answer emails from Dave and Kanembou (from Chad).  We discuss the ins and outs of various data sets (as opposed to crystal balls), choosing a portfolio based on aggressiveness or conservativeness, related safe withdrawal rate issues and Donor Advised Funds. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Pa...

In this jam-packed episode we answer questions from Luke, Ethan, and Garry.  We discuss a modified Golden Butterfly portfolio, some meta-withdrawal strategy ideas and concepts, a process for deciding what to do with oneself, small-cap vs. small-cap value investments, some esoteric international tax issues and the new QQQY gambling problem fund.  And throw in some Tom Waits to boot. Links: Portfoli...

In this episode we answer an email from Jeffrey about the "4% Rule".  We discuss its origins, its three parameters (portfolio construction, time frame, and withdrawal mechanism), how it works, what it means and doesn't mean, its uses and misuses and how to make adjustments to improve your own outcomes. And THEN we our go through our weekly portfolio reviews of the seven sample portf...

In this episode we answer emails from Brown, Justin, MyContactInfo and an Anonymous Trending Value Investor.  We discuss investing in baskets of property & casualty insurance companies for effective diversification, what's happening at Risk Parity Chronicles, general thoughts about brokerages for DIY investors and an assortment of leveraged momentum-based strategies. Links:  Walk4McKenna:...

In this episode we answer emails from Owen, Jeff and Will.  We discuss the commonly believed misinformation about TIPS, the ins and outs of quality dogs and investing principles, and talk about backtesting data and how it is used and misused. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio .   We have a rebalanci...

In this episode we answer emails from Graham, Hydromod and Katie.  We discuss a couple new funds from Avantis, AVGE and AVGV, and creating a portfolio with those and RSBT, Hydromod's Okay Adventure portfolio management techniques with a levered risk parity style portfolio, and Katie's questions about buying a house with her partner.  And we make fun of our children, Squidward and Patrick...

In this episode we answer emails from Justin of Risk Parity Chronicles and Chris.  We discuss Justin's new blogpost and a new fund that mixes stocks and managed futures, RSST, and follow up on Episode 288 with some useful references from Chris. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio .   We have a re...

In this episode we respond to emails from Matt, MyContactInfo, Alexi (a/k/a "Dude") and Sharon.  We follow up on Matt's email from Episode 286, talk more about using Portfolio Visualizer and safe and perpetual withdrawal rates, Allan Roth's critique of Wade Pfau's analysis and article and related issues, and individual bonds vs. bond funds. Links: Matt's Current Portf...

In this episode we answer a loooooong email from Kevin.   We discuss how to use backtesting and Monte Carlo simulations and how they related to safe and perpetual withdrawal rates, classic and modified Risk Parity-style portfolios, assorted variables and metrics, sizing allocations, Kevin's overall portfolio.  And conclude with Monty Python and Kevin singing. And THEN we our go through our we...

In this episode we answer emails from Chas, MyContactInfo and JDM.  We discuss momentum-based funds and strategies (see also Episodes 218, 231 and 234), the inherent difficulties of trying to use GDP and other macro-economic data to make investing decisions and the basics of implementing a Golden Butterfly portfolio. Links: AQR Article -- Fama on Momentum:  Fama on Momentum (aqr.com) Interview of...

In this episode we answer emails from Kyle, Blake and Matt.  We discuss investing in a 457 plan with a self-directed option, Blake's gambling problem -- err, very interesting leveraged portfolio, and how to evaluate RIAs through their SEC filings as applied to Lido. Links: Analysis of Total Market vs. 60/20/20 vs. Large cap/small cap value portfolios:  Backtest Portfolio Asset Class Allocatio...

In this episode we answer emails from Chas, Keith and Fritz.  We discuss the new Asset Camp tool offered by David Stein, basic issues of leverage (listen also Episodes 258 and 259) and the recent performance of long term treasury bonds. Links: Asset Camp:    Asset Camp - Asset Camp Ben Carlson blog post:  Everything & Everyone Underperforms Eventually - A Wealth of Common Sense Rational Remind...

In this episode we answer emails from Jimmy, John and MyContactInfo.  We discuss the foibles of trying to make investment decisions based on news, politics or macro-economic events, Joel Greenblatt's investment methodologies re value-weighting from 2010 and where there are today, and learn some more from Professor Aswath Damodaran about why you cannot use market valuation metrics and P/E rati...

In this episode we answer emails from Mark, Wesley and Tom.  We make fun of the host and talk about his personality traits and the Big Five personality test, Wesley's portfolio and the new managed futures fund, CTA, and a question about the historical performance about stocks in Great Britain. Links: Revisionist History Podcast re Cliff Asness and Disagreeableness:   Malcolm Gladwell's 1...

In this episode we answer emails from Kevin, Philip and Brown.  We discuss (and thank) our generous listeners, our three principles -- Simplicity,  Macro-allocation and Holy Grail -- and why they need to work together, using conservative portfolios for accumulation, investing in international funds in a sensible manner to maximize diversification and international currency risks, investing in util...

In this episode we answer emails from Jeff, Micah and Chris.  We discuss some data anomalies of Portfolio Visualizer pertaining to REITs, how to interpret and use Monte Carlo simulations, a more aggressive variation of the Golden Butterfly portfolio (similar to the Weird Portfolio) and the recent performance of the Golden Butterfly portfolio itself. Links: Portfolio Visualizer REIT Data:  Backtest...

In this episode we answer an email from Judy.  We discuss a 2013 Michael Kitces article about risk parity, which aspects we have incorporated and which we have not (and why), and then talk about an interview of William Bernstein about his new book and some related thoughts and ramifications about bonds, crystal balls, annuities and other things.  (Note:  I think I said it was the 4th edition, but...

In this episode we open up Season Four by answering emails from Pete, Arnold and Igor.  We discuss Pete's slightly levered Golden Ratio type portfolio, TJUL and buffered funds generally and a Portfolio Visualizer anomaly.   It's Shplendid! Links: Optimized Portfolio Article re UPRO and other leveraged ETFs:  The 9 Best Leveraged ETFs To Enhance Portfolio Exposure (2023) (optimizedportfol...

In this episode we close out Season Three with a discussion of the annual rebalancings we performed last week on four of the Sample Portfolios -- the All Seasons, the Golden Butterfly, the Golden Ratio and the Risk Parity Ultimate. It's nitty and its gritty. Link to Portfolios Page:   Portfolios | Risk Parity Radio Support the show

In this episode we answer emails from MyContactInfo and Stanley.  We discuss a podcast interview of Professor Jean-Phillipe Bouchaud about methods of analyzing complex systems and financial markets and compare investments in small cap blend and small cap value funds. Links: Rick Bookstaber podcast interview of  Professor Jean-Phillipe Bouchaud:   Seeking Risk: The Fab Rick Show: The Science of Ris...

In this episode we answer an email from Marcy.  We discuss the modern and extended histories of the FIRE movement,  FIRE movements and FIRE literature of the past from the 19th Century and beyond, the parallels of modern portfolio mistakes with those of FIRE circa 1990, and do a case study of Marcy's FIRE goals and portfolio using Portfolio Visualizer.  (Errata -- I said "21%" for t...