Risk Parity Radio

In this episode, which is a follow-up to Episode 25, we analyze as an investment in utilities for a risk-parity style portfolio using David Stein's 10 Questions to Master Investing, which are: 1.  What is it? 2.  Is it an investment, a speculation, or a gamble? 3.  What is the upside? 4.  What is the downside? 5.  Who is on the other side of the trade? 6.  What is the investment vehicle? 7. ...

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfolios We also compare the All Seasons Portfolio with the Vanguard Wellesley Fund at Portfolio Visualizer.  Link to analysis: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=tr...

This episode takes a broad look and sector funds and compares them with the overall stock market for diversification purposes.  Thanks to listener Micah for the question. Links: SPDR Report on the SPDR Select ETFs:  https://www.sectorspdr.com/sectorspdr/Pdf/General%20Documents/Q3%202020%20Sector%20SPDR%20Quarterly%20Guide Correlation Analysis of All Eleven SPDR Sector Funds from 2018 to 2020:  htt...

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfolios We also compare the Aggressive Fifty-Fifty Portfolio with two Dave Ramsey-Style Portfolios using the tools at Portfolio Visualizer.  Relevant links: White Coat Investor article about a Ramsey-style portfolio:  https://www.whitecoatinvestor.com/dave-ramsey-asset-allocation/ Portfolio Vis...

We analyze a portfolio recently proposed in a MarketWatch article that is intended to replace the standard 60/40 stock/bond retirement portfolio. Links: MarketWatch article:  https://www.marketwatch.com/articles/a-60-40-stocks-bond-strategy-no-longer-works-heres-what-to-do-instead-51601653163?mod=mw_latestnews Portfolio Visualizer Comparison Analysis:  Backtest Portfolio Asset Allocation (portfoli...

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfolios And here is a nice picture of Walden Pond on October 11, 2020: https://photos.app.goo.gl/sksbGcENz62pb8PVA Support the show

In this episode, which is Part Two of Two, we conclude the analysis of REITS as an investment that we began in Episode 19, using David Stein's 10 Questions to Master Investing, which are: 1.  What is it? 2.  Is it an investment, a speculation, or a gamble? 3.  What is the upside? 4.  What is the downside? 5.  Who is on the other side of the trade? 6.  What is the investment vehicle? 7.  What...

We begin with a monthly rant about the misguided idea of picking funds that have "great fund managers" and a few other topics. Relevant links: Recent interview of Burton Malkiel:  https://animalspiritspod.libsyn.com/a-random-talk-with-burton-malkiel Risk Parity Radio Bond Episodes: https://www.riskparityradio.com/podcast/episode/4965a5d2/episode-14-which-bonds-are-right-for-your-risk-par...

In this episode, which is Part One of Two, we begin our analysis of REITS as an investment using David Stein's 10 Questions to Master Investing, which are: 1.  What is it? 2.  Is it an investment, a speculation, or a gamble? 3.  What is the upside? 4.  What is the downside? 5.  Who is on the other side of the trade? 6.  What is the investment vehicle? 7.  What does it take to be successful? 8...

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfolios We also compare the Risk Parity Ultimate Portfolio with a Boglehead's Three-Fund Portfolio using the tools at Portfolio Visualizer.  Here is a link to that analysis: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&...

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfolios We also compare the Golden Butterfly Portfolio with a Boglehead's Three-Fund Portfolio using the tools at Portfolio Visualizer.  Here is a link to that analysis: https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1972&a...

In this episode, which is Part Two of Two, we continue our discussion from Episode 14 (Part 1), and conclude our analysis bonds as an investment using David Stein's 10 Questions to Master Investing, which are: 1.  What is it? 2.  Is it an investment, a speculation, or a gamble? 3.  What is the upside? 4.  What is the downside? 5.  Who is on the other side of the trade? 6.  What is the investm...

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfolios We also compare the Golden Butterfly Portfolio with a Boglehead's Three-Fund Portfolio using the tools at Portfolio Visualizer.  Here is a link to that analysis:   https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1972...

In this episode, which is Part One of Two, we begin our analysis of bonds as an investment using David Stein's 10 Questions to Master Investing, which are: 1.  What is it? 2.  Is it an investment, a speculation, or a gamble? 3.  What is the upside? 4.  What is the downside? 5.  Who is on the other side of the trade? 6.  What is the investment vehicle? 7.  What does it take to be successful? 8...

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfolios We also discuss the All Seasons Portfolio in a little more depth, including why it may not be the best representative of a risk-parity style portfolio and what it is missing. The All Seasons portfolio is a reference portfolio that is modeled after Ray Dalio's All Weather portfolio...

In this episode we analyze gold as an investment using David Stein's 10 Questions to Master Investing, which are: 1.  What is it? 2.  Is it an investment, a speculation, or a gamble? 3.  What is the upside? 4.  What is the downside? 5.  Who is on the other side of the trade? 6.  What is the investment vehicle? 7.  What does it take to be successful? 8.  Who is getting a cut? 9.  How does it i...

This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios We also discuss the Risk Parity Ultimate Portfolio in depth, including how it was constructed and how it compares with a classic 60/40 retirement portfolio comprised of VTI (60%) and BND (40%). The Risk Parity Ultimate is a conservative portfolio that is designed for medium and long-te...

This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios We also discuss the Aggressive Fifty-Fifty Portfolio in depth, including how it was constructed and how it compares with a Total Stock Market portfolio.  Are you interested in an 80% better performance with only slightly more risk than the market?  Then lend your ear. The Aggressive Fi...

In this episode we discuss how NOT to choose investments and how to employ a good process to analyze an investment.  We adopt the process of David Stein's 10 Questions To Master Successful Investing and apply it to PFF, an exchange-traded fund of preferred stock. Links: Investopedia Article -- "How Does Preferred Stock Work?":    https://www.investopedia.com/articles/stocks/06/prefe...

This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios We also discuss the Accelerated Permanent Portfolio in depth, including how it was constructed and how it compares with A Total Stock Market portfolio.  Are you interested in a 50% better performance with slightly less risk than the market?  Then lend your ear. Here is a link to the an...

In this episode we discuss how professionals construct risk-parity style portfolios, what are the basic principles for the do-it-yourself investor, and how to implement them.  The three basic principles are (1) the Holy Grail Principle; (2) the Macro-Allocation Principle; and (3) the Simplicity Principle. Here are the links mentioned in the episode: March draw-downs for professional risk-parity st...

This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios We also discuss the Golden Ratio Portfolio in depth, including how it was constructed and how it compares with the Total Stock Market and 60/40 stock/bond portfolios over the past 50 years.  Are you interested in a 30% better safe withdrawal rate?  Then lend your ear. Here is the link...

In this follow-up to Episode 3, we explore the development of risk-parity style investing from the 1980s to the present day. Links: The All Weather Strategy Paper:    Bridgewater Paper 2009.12 AW Info Pack.doc (granicus.com) Risk Parity Portfolios:  Efficient Portfolios Through True Diversification:  https://www.panagora.com/assets/PanAgora-Risk-Parity-Portfolios-Efficient-Portfolios-Through-True-...

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfolios We also discuss the Golden Butterfly Portfolio in depth.  Links to more information about the Golden Butterfly and the theory behind it: https://portfoliocharts.com/2015/09/22/catching-a-golden-butterfly/ https://portfoliocharts.com/2016/04/18/the-theory-behind-the-golden-butterfly/ Sup...

In this episode we explore the ancient origins of asset allocation and diversification, and how these ideas were expanded upon and implemented from the 1950s into the 1980s. Links:  Bava Metzia 42a:  https://steinsaltz.org/daf/bavametzia42/ 70-year History of Investment Consulting:  The 70 Year History of Investment Consulting: 1950-2020 | Nasdaq Why the Best-Laid Investment Plans Usually Go Wrong...