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&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=true&initialAmount=10000&ann...
Sep 27, 2020•16 min•Season 1Ep. 18
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&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initia...
Sep 20, 2020•13 min•Season 1Ep. 17
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 investment vehicle? 7. What does it take to be successful? 8. Who is getting a cut? 9. How does it impact your portfol...
Sep 16, 2020•32 min•Season 1Ep. 16
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&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initia...
Sep 13, 2020•13 min•Season 1Ep. 15
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. Who is getting a cut? 9. How does it impact your portfolio? 10. Should you invest? We cover the first five que...
Sep 09, 2020•29 min•Season 1Ep. 14
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 and is described in "Money: Master the Game" by Tony Robbins. It is a very conservative portfolio that is...
Sep 06, 2020•17 min•Season 1Ep. 13
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 impact your portfolio? 10. Should you invest? We also discuss several bits of financial misinformation I heard on p...
Sep 03, 2020•31 min•Season 1Ep. 12
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-term needs. It is comprised of 12 different funds in six different asset classes: 40% stock funds (spl...
Aug 30, 2020•16 min•Season 1Ep. 11
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 Fifty-Fifty Portfolio is comprised of 33% UPRO, 33% TMF, 17% PFF and 17% VGIT. Here is a link to the ana...
Aug 23, 2020•16 min•Season 1Ep. 10
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/preferredstock.asp#:~:text=Preferreds%20are%20issued%20with%20a,of%20the%20preferred%20shares%20falls. Ishares description o...
Aug 20, 2020•39 min•Season 1Ep. 9
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 analyzer we used to compare the Accelerated Permanent Portfolio with a Total Stock Market portfolio: htt...
Aug 16, 2020•18 min•Season 1Ep. 8
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 style portfolios: https://www.markovprocesses.com/blog/risk-parity-funds-in-the-coronavirus-market-rout...
Aug 13, 2020•24 min•Season 1Ep. 7
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 to the article about the Golden Ratio as mentioned in the episode: https://en.wikipedia.org/wiki/Golde...
Aug 09, 2020•30 min•Season 1Ep. 6
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-Diversification.pdf Risk Parity: Silver Bullet Or A Bridge Too Far: chapter-4-from-managing-multiasset-st...
Aug 06, 2020•26 min•Season 1Ep. 5
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/ Support the show...
Aug 02, 2020•18 min•Season 1Ep. 4
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: https://seekingalpha.com/article/4357226-70-year-history-of-investment-consulting-1950minus-2020 Why the Best-Laid Investment Plans Usually Go Wrong: And How You Can Find Safety and Profit in an Uncertain World: https:/...
Jul 30, 2020•18 min•Season 1Ep. 3
In this episode we review the initial performance of our six sample risk-parity style portfolios, which are: (1) the All Seasons portfolio; (2) the Golden Butterfly portfolio; (3) the Golden Ratio portfolio; (4) the Risk Parity Ultimate portfolio; (5) the Accelerated Permanent Portfolio; and (6) the Aggressive Fifty-Fifty. After that, we discuss the All Seasons portfolio in more detail. Additional information and the referenced data may be found at https://www.riskparityradio.com/portfolios Supp...
Jul 27, 2020•14 min•Season 1Ep. 2
This is a brand new podcast in the personal finance space for the do-it-yourself investor. It is about asset allocations using risk-parity principles to construct robust portfolios. In this episode we answer five basic questions: 1. What is Risk Parity Radio? 2. Who is this podcast for? 3. Gee willikers, what does "Risk Parity" mean anyway, Uncle Frank? 4. How will will make this real and actionable for you? 5. How can you get involved? Stay tuned for more content in future episodes! Support the...
Jul 25, 2020•19 min•Season 1Ep. 1
