In this episode we answer emails from Howard, Paxton, Neil and Soo New. We discuss why financial TV is bad for your financial mind and health, the RISR ETF that invests in interest components of mortgage-backed securities, defense stock ETFs, the JPST ETF and what Soo New might do with her employer pension fund. It's Weird, Wild Stuff! Links: RISR Information Page: Rising Rate ETF (RISR) — FolioBeyond ETFs Morningstar Analysis of ITA Defense Stock ETF: ITA – Portfolio – iShares US Aerospace &...
Aug 10, 2022•32 min•Season 3Ep. 197
In this episode we answer emails from Davis, Justus and Value Stock Geek. We discuss how to use extended duration bond funds like EDV, ZROZ and GOVZ, reprise our discussion about life transitions from Episode 71 and veer off into Peter Zeihan and China's demographics. And THEN we our go through our weekly and monthly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Note that I discovered some of my return numbers were wrong (WRONG!) after recordin...
Aug 06, 2022•26 min•Season 3Ep. 196
In this episode we answer emails from MyContactInfo (x2), William and Peter. We discuss how brokerages and cars are alike, a correlation episode reference, analyzing a portfolio with Fidelity Select Funds in it (and other things) and transitions from VTSAX to some small cap cowbell and then to a Golden Ratio portfolio for retirement. Links: I'm Not Leaving Vanguard Article: Why I’m Not Leaving Vanguard | ETF.com 60/40 Is Still Alive Article: Like the phoenix, the 60/40 portfolio will rise again ...
Aug 04, 2022•31 min•Season 3Ep. 195
In this episode we answer emails from Visitor #1109, Keith and Brad. We discuss Dunn Capital and Managed Futures funds, our podcast charity -- the Father McKenna Center --, and Mutiny Fund's "Cockroach Portfolio". And THEN we our go through our weekly and monthly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Dunn Capital: Home - Dunn Capital Top Traders Unplugged Podcast: Top Traders Unplugged Mutiny Fund's Cockroach Portfolio...
Jul 31, 2022•29 min•Season 3Ep. 194
In this episode we answer emails from MyContactInfo (x2), Chris, and Andrew. We discuss "The Myth of Private Equity" by Jeff Hooke, the paradox of skill and how it is applied in garden-based portfolio construction, volatility targeting as a decision making mechanism for investing and my gout, my podcast musical selections and the security of the Golden Ratio portfolio. And we throw in a yield curve inversion video. We do it all here. Links: The Myth of Private Equity book: The Myth of Private Eq...
Jul 28, 2022•22 min•Season 3Ep. 193
In this annual feature we discuss how we rebalanced four of the sample portfolios you can find at Portfolios | Risk Parity Radio and have frolics and detours into discussions of bucket strategies, crypto-funds and the details of the Risk Parity Ultimate sample portfolio. We also highlight a new video tutorial from Justin at Risk Parity Chronicles about the Risk/Return tool at Portfolio Charts and do our weekly portfolio reviews of all seven sample portfolios. Links: Risk Parity Chronicles post a...
Jul 24, 2022•43 min•Season 2Ep. 192
In this episode we answer emails from Anderson, Aaron, Anna and Travis. We discuss how to use Portfolio Visualizer to compare portfolios on a particular time-frame using samples and a 60/40, where to address any data issues to Portfolio Charts and Portfolio Visualizer, and the current frustrations many are having with using Vanguard. And then we consult a crystal ball to help a six-year old child. Links: Comparison of Golden Butterfly, Golden Ratio and 60/40 Portfolios: Backtest Portfolio Asset ...
Jul 20, 2022•25 min•Season 2Ep. 191
In this episode we answer emails from Jody, Neil and The Nameless One. We discuss the basic ideas of portfolio constructions and the tools for doing it, the Golden Ratio portfolio and gold itself, and more I-bond suggestions and links. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Portfolio Charts Portfolio Examples: Portfolios – Portfolio Charts Portfolio Finder Tool: PORTFOLIO FINDER – P...
Jul 16, 2022•37 min•Season 2Ep. 190
In this episode we answer emails from MyContactInfo, Rob and Justin. We discuss a paper about GDP and the problems with using it to predict stock market returns, why China may never overtake the U.S. and ascend to reserve currency status and a most excellent rebalancing resource you can find at the Risk Parity Chronicles website and blog. Links: Economic Growth and Equity Returns Paper: Microsoft Word - EconGrowth.doc (ssrn.com) GDP Article: Gross domestic product - Wikipedia Risk Parity Chronic...
Jul 13, 2022•22 min•Season 2Ep. 189
In this episode we answer emails from Paul, Soo-New and Geordi. We discuss using the AVUV fund for your small cap value allocation, the timing of withdrawals to reduce stress and crystal balls, and small cap value vs. small cap blend funds. And we reference an article at Portfolio Charts reviewing common portfolios' performances in the first half of 2022. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additi...
Jul 09, 2022•24 min•Season 2Ep. 188
In this episode we answer emails from MyContactInfo, Brett and Jamie. We discussed inherent biases, rolling over a TSP portfolio and reallocating it at Fidelity with or without a crystal ball, have a lengthy talk about allocations to managed futures and the difficulties in analyzing them, and SCO, a short oil futures ETF. Links: Gwen's Frustrations With A Rollover: Navigating The Archaic, Convoluted, Confusing, And Utterly Enraging 401(k) Rollover Process | Fiery Millennials Patrick Boyle's Inve...
Jul 06, 2022•26 min•Season 2Ep. 187
In this episode we answer questions from Matsui, FuriousRiskParityInvestor and Paul. We discuss why we have chosen excessively aggressive withdrawal rates for the sample portfolios, revisit treasury bond correlation issues and why smaller allocations to long-term treasuries make more sense than larger allocations to intermediate treasury bonds in most risk parity style portfolios. And THEN we our go through our weekly and monthly portfolio reviews of the seven sample portfolios you can find at P...
Jul 02, 2022•33 min•Season 2Ep. 186
In this episode we answer emails from Eric, Colin and Chris. We discuss the pros and cons of Interactive Brokers, the generally useless nature of private equity, David Stein's Asset Gardening approach, and stagflation. And that's the way it was and we liked it! Links: Correlation Analysis of Private Equity Fund (PSP): Asset Correlations (portfoliovisualizer.com) Article about stagflation and the origin of the term: Stagflation Definition (investopedia.com) Support the show...
Jun 30, 2022•33 min•Season 2Ep. 185
In this episode we answer emails from MyContactInfo, Nancy and Anderson. We discuss why I'm not writing a book any time soon, the performance stats on the Portfolios Page, when I might consider a simple annuity and why I don't like financial personality profiling, and the difficulties of adding leverage in portfolio downturns. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Money for the Res...
Jun 26, 2022•32 min•Season 2Ep. 184
In this episode we answer emails from MyContactInfo, Jeff, Liah and Andrin. We discuss asset pricing models, the history of economics and Bogle's Cost Matter Hypothesis, Emerson and Foolish Consistencies and the FTSE All World GDP Weighted Index. Links: Self-Reliance: Self-Reliance: Change Your Life For The Better - Ralph Waldo Emerson (emersoncentral.com) Self-Reliance Audio: Self-Reliance Ralph Waldo Emerson Audio Book - YouTube FTSE All-World Index: GDP-Weighted-Paper.pdf (ftserussell.com) AC...
Jun 23, 2022•32 min•Season 2Ep. 183
In this episode we answer emails from Julie T, Geordi and Justin. We discuss mechanisms for withdrawals from retirement portfolios, transitioning portfolios as you get close to retirement and the whys and hows of adding new investments to a portfolio. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . David Stein's Ten Questions to Master Investing for reference: 1. What is it? 2. Is it an investment, a speculat...
Jun 19, 2022•39 min•Season 2Ep. 182
In this episode we answer emails from Brian, Grant and MyContactInfo. We discuss rebalancing mechanisms and rules for various kinds of portfolios and the big discount brokers. Links: Optimized Rebalancing Article: Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com) Brian's Golden Butterfly with Annual Rebalancing: Backtest Portfolio Asset Class Allocation Brian #1 (portfoliovisualizer.com) Brian's Golden Butterfly with Rebalancing Bands: Backtest Portfolio Asset Class Allocation ...
Jun 15, 2022•28 min•Season 2Ep. 181
In this episode we answer emails from Kirk, MyContactInfo and Holly. We revisit QREARX, Episode 179 and Correlation Metrics, and then we entertain Holly's requests for book recommendations. And I forgot to recommend "Money For The Rest Of Us" by J. David Stein in that segment. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: TIAA QREARX Summary: TIAA Real Estate Account Risk Parity Books at R...
Jun 11, 2022•36 min•Season 2Ep. 180
In this episode we answer emails from Karen, Ron, Brian and Paul. We discuss shameless plugs for my family and friends and other considerations in selecting a financial advisor/manager, the full cycle of investing and Paul's value- and Iowa-focused portfolio. Links: Bridget Patel (better call her): Bridget Patel - Profile | Alliance of Comprehensive Planners Community (acplanners.org) Values Added Financial: About Us – Values Added Financial Holly Grosvenor: Microstuff.com - Financial coaching h...
Jun 08, 2022•27 min•Season 2Ep. 179
In this episode we answer emails from George, Grant, Visitor #4090, Justin and Lili. We discuss the long-time usage and popularity of risk parity concepts by professional investors, a levered Golden Butterfly portfolio, the website chat function, Japan, crypto (a little) and consulting services. And my general laziness. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: AQR Paper "Understanding...
Jun 05, 2022•36 min•Season 2Ep. 178
In this episode we answer emails from Andrew, Visitor #4691, Nate, and MyContactInfo. We discuss the new-age-old question about passive indexing and market efficiency, the intersection between the ideas of Max Planck and Ralph Waldo Emerson and how it applies to the development of ideas in portfolio construction, using ZROZ to tax-loss harvest TLT and observations about the promotion by the financial services industry of direct indexing and tax loss harvesting services. Links: Max Planck's Princ...
Jun 01, 2022•30 min•Season 2Ep. 177
In this episode we answer emails from Steve, Judy and Geordi. We discuss the data surrounding stock/treasury bond correlations back to 1952, when and why you might want to hold bonds and a process for figuring that out and my takes on The Simple Path To Wealth. With detours into prison jumpsuits, SpongeBob and Ray Liotta. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Flights To Safety Trea...
May 29, 2022•49 min•Season 2Ep. 176
In this episode we answer emails from MyContactInfo, the Nameless One, Jeff, Alexi (a/k/a Dude), and another Jeff. We talk about leveraged ETFs (briefly), thoughts about changes in the Global Monetary System, another portfolio site, ETFs KBWR and KBWP and efficient accumulation. Links: Ray Dalio's Latest Book: Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail - Kindle edition by Dalio, Ray. Politics & Social Sciences Kindle eBooks @ Amazon.com. Lords of Finan...
May 25, 2022•21 min•Season 2Ep. 175
In this episode we answer emails from Soo-New, Monika, Jeff and Jack. We discuss building out a risk parity portfolio in multiple accounts, the perils of membership in the Risk Parity Radio Club, the latest fads and gimmicks in Direct Indexing, how to consider and compare investing in different countries with Country Risk Factors and the intellectual perils of the Possibility Effect. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios...
May 14, 2022•39 min•Season 2Ep. 174
In this episode we answer emails from Jamie, Jean-Luc and Geordi. We discuss a paper about REITs as a separate asset class, what to do about struggling bond funds, the value of small-cap value and choosing a retirement portfolio in line with Bill Bengen's recommendations. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Jamie's Article -- Are REITs A Distinct Asset Class?: delivery.php (ssrn....
May 07, 2022•35 min•Season 2Ep. 173
In this episode we answer emails from Andy, MyContactInfo and James The Flatterer. We discuss factor investing in detail, why it is better than prior approaches and how to use it, why using valuation methods is beyond the skills of most amateurs and financial advisors and more fun with Wisdom Tree Funds. Links: Factor Investing Article 1: Factor Investing Definition (investopedia.com) Factor Investing Article 2: Factor investing - Wikipedia Correlation Analysis of Golden Ratio Factor Funds: Asse...
May 04, 2022•24 min•Season 2Ep. 172
In this episode we answer emails from Chas, Javen and Pankaj. We discuss using Berkshire Hathaway in a risk parity-style portfolio, Direxion mutual funds, taxable account considerations (again) and international stock funds (again). And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Direxion Mutual Funds: Direxion Mutual Funds | Direxion Episode 27 Re Utilities: Podcast #27| Risk Parity Radio C...
Apr 30, 2022•28 min•Season 2Ep. 171
In this episode we celebrate George's generosity and answer emails from Jeff, Kyle, Richard, Jamie and MyContactInfo. We discuss ulcer indexes and where to find them, leveraged ETFs and rebalancing, tag GDE again, have a lengthy frolic and detour into commodities funds and how they work, and rant a little more about the financial services industry. Links: The Father McKenna Center: Home - Father McKenna Center Portfolio Charts Drawdown Calculator with Ulcer Index: DRAWDOWNS – Portfolio Charts Op...
Apr 27, 2022•31 min•Season 2Ep. 170
In this episode we answer emails from MyContactInfo (x2), Chris and Karen. We discuss annuities and conflicts in the financial services industry and why efficient solutions are disfavored, tax considerations for accumulation risk parity portfolios and the joys of budgeting. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Interview of Fairfax County Pension Investment Managers: 7 Allocator Se...
Apr 24, 2022•35 min•Season 2Ep. 169
In this episode we answer questions from Doron, George, Eddie J. and Alexi (a/k/a "Duder"). We discuss the Macro-Allocation Principle and when to diversify your stock portfolio, what to do with dividends, experimenting with leveraged two-fund portfolios and options for investing in volatility and managed futures/trend following with the Dude. We also talk about reaching 250,000 downloads and about what's happening over at Risk Parity Chronicles. Links: Johnny Ball and his Pentagram: Drawing an E...
Apr 20, 2022•31 min•Season 2Ep. 168
