In this episode we answer emails from Lauren, Paul and MyContactInfo. We discuss Emerson and Thoreau and how we apply their teachings, comparing risk parity style portfolios with others using Portfolio Charts, and an article about Bill Bernstein's new bond ladder and how it fits in. 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: Self Reliance by Emerson: Self Reliance by Ralph Waldo Emerson...
Apr 22, 2023•30 min•Season 3Ep. 256
In this episode we answer emails from Javier, Adam, and Jeff. We discuss what to do with limited 401k options and the Macro Allocation Principle, revisit an academic article we discussed in Episode 251 with some additional critical thinking skills, and talk some about Corey Hoffstein's return stacking, developments in leveraged fund and the Pimco StocksPlus family. Links: Rational Reminder Video re Using Leverage: Investing With Leverage (Borrowing to Invest, Leveraged ETFs) - YouTube RSBT Fund ...
Apr 20, 2023•27 min•Season 3Ep. 255
In this episode we answer emails from Javier, Heath and Joao. We discuss Simplify's short VIX ETF, "SVOL", and the difficulties of investing in volatility, the anomalous circumstances of 2022 and how it affected treasury bonds, and a bit about taxation in Brazil (about which I really know nothing). And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional link: Simplify's SVOL ETF: SVOL Simplify Volatility P...
Apr 16, 2023•27 min•Season 3Ep. 254
In this episode we answer emails from MyContactInfo and Chris. We follow up on Episode 251 with a taxonomy of five withdrawal strategies described in an article from the CFA institute and discuss a "not really a withdrawal strategy" that is classified as a form of mental accounting and does not impact safe withdrawal rates (at least not in a positive manner). We talk about how to classify annuities, bond ladders and portfolio-based withdrawal strategies. And we thank Chris and our other charitab...
Apr 13, 2023•41 min•Season 3Ep. 253
In this episode we answer emails from Andreas and Brad. We discuss algorithmic factor funds like AVUV vs. basic index factor funds, basic principles of portfolio construction, low volatility funds, and the rebalancing research of Corey Hoffstein. 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: Father McKenna Center Giving Page: Donate - Father McKenna Center Simplify Interview of Corey Hoffs...
Apr 09, 2023•35 min•Season 3Ep. 252
In this episode we answer emails from Pete, MyContactInfo and Jenzo. We discuss leveraged funds, a paper about holding them longer term and optimal leverage, analyzing leveraged portfolios, meta-concepts of retirement portfolio planning and how to separate the critical components of a withdrawal strategy (the dogs) from various management techniques, labeling methods and mental accounting (the tails), and last year's scare paper about hyper-low safe withdrawal rates of poorly constructed interna...
Apr 06, 2023•48 min•Season 3Ep. 251
In this episode we answer emails from Carmello, Trevor, Timothy and Andreas. We discuss some of the history of the gold standard and inflation, leveraged funds, portfolio reviews, short sellers and Fidelity's recent forays into risk parity. 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: Cross of Gold Speech Article: Cross of Gold speech - Wikipedia Optimized Portfolios Site on Leveraged Fun...
Apr 02, 2023•34 min•Season 3Ep. 250
In this episode we answer emails from Wesley, Mark and a different Mark. And an errant comment from his Dude-ness, Alexi. We discuss how municipal bond funds might be used in risk-parity style portfolios and how not, a couple of interesting newer financial planning calculators and the planning process I actually use instead to account for liquidity issues, asset allocations in accumulation when options are limited and the ins and outs of preferred shares funds like PFF. And then we goof off. Aga...
Mar 30, 2023•30 min•Season 3Ep. 249
In this episode we answer two emails from Alexi (a/k/a the "Dude") and another from Barry. We discuss funds that are designed to take advantage of rising interest rates like RRH, RISR and PFIX, another Dude-constructed accumulation portfolio with leveraged funds and some portfolio construction rules of thumb, and the noisy-ness of correlation data and matrices. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . ...
Mar 26, 2023•27 min•Season 3Ep. 248
In this episode we answer emails from Clint, Jeff and Penny. We discuss brokerage firms and solvency issues, estimating expenses for long retirements and basic tax considerations in portfolio management. Links: Rob Berger Video About Brokerages and Solvency: What Happens to Our Investments if Schwab, Fidelity or Vanguard Collapse? - YouTube Morningstar 2022 Retirement Report Download Page: 2022 Retirement Withdrawal Strategies Report | Morningstar Portfolio Charts Article with Tax Loss Harvestin...
Mar 22, 2023•32 min•Season 3Ep. 247
In this episode we answer emails from Kevin, Graham and Boone. We discuss the risk parity ETFs, RPAR and UPAR, leveraged portfolios, alternative assets, ETFs and some of the podcasts I'm listening to these days. Links: RPAR webpage: RPAR Risk Parity ETF (rparetf.com) Risk Parity Book Review: Top 10 Risk Parity Resources: #10... Shahidi (2021) (riskparitychronicles.com) CFA Institute Manual Article: chapter-4-from-managing-multiasset-strategies-2018.pdf (callan.com) Rational Reminder Video about ...
Mar 16, 2023•40 min•Season 3Ep. 246
In this episode we answer emails from Anonymous, Jeffrey and Anderson. We discuss locations for putting gold in various accounts, rant about the physical gold racket, discuss theoretical and practical risk parity portfolios, and talk about short and long term treasuries. 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: Justin's Video Re Asset Swaps: How to Do an Asset Swap - YouTube Justin's ...
Mar 04, 2023•37 min•Season 3Ep. 245
In this episode we answer a series of emails from Drew and one from Ms. Annie Mouse. We discuss the fund BLNDX, managed futures and how to analyze new and composite funds and then rant about TIPs misconceptions and uses for your delight and amusement. 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: Podcast re BLNDX: Creating The Optimal Diversified Portfolio | Eric Crittenden | Episode 64 - ...
Feb 26, 2023•40 min•Season 3Ep. 244
In this episode we answer emails from Johnny, Kevin and Daniel. We discussed managed futures vs. commodity funds, the Mt. Lucas "Dirty Portfolios" with KMLM and how to transition from one asset to another in a portfolio with the beginning of a new pedagogical experiment in that. 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: Dirty Portfolios Article with Dirty Harry Quotes: Dirty Portfolios...
Feb 19, 2023•35 min•Season 3Ep. 243
In this episode we answer emails from Alexi (a/k/a "the Dude"), the effervescent MyContactInfo, and Mike. We discuss a Portfolio Visualizer fund selection tool for factor investing, Merton and other academics, and an uncannily familiar diversified portfolio recently featured in a Marketwatch article. And we play some Motorhead and rant about financial media a bit. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio...
Feb 12, 2023•28 min•Season 3Ep. 242
In this episode we answer two looooong emails from Mark and Andreas. We discuss Mark's quandaries with a 457 plan and Andreas's Risk Parity fever brought on by topics that include how to choose ETFs for each asset class, leverage in bond funds, TIPS, a proposed portfolio, other alternatives like long-short, market neutral and options strategies and musings about taxes and currency exposures. And then we conclude with Polo Hofer. Links: Father McKenna Center donation page: Donate - Father McKenna...
Feb 09, 2023•46 min•Season 3Ep. 241
In this episode we answer emails from Kyle, Esek and Erin. We discuss 529 plans, what is "enough" in terms of this podcast, and THEN the meta approaches to retirement planning and the importance of distinguishing portfolio construction and allocation strategies from portfolio management techniques, including a tour on the Good Ship Lollipop with the Outlaw Josey Wales. Errata: I said "Bernstein assumptions" when I meant "Bengen assumptions." And THEN we our go through our weekly portfolio review...
Feb 05, 2023•46 min•Season 3Ep. 240
In this episode we answer emails from Gareth, Mark and Alex. We talk about the meta-differences in investing in various countries, utilities, long dollar funds like UUP, specialized commodities mutual funds like LCSIX and a couple new leveraged funds with mixed asset classes. Links: LCSIX Fact Sheet: LoCorr-Funds-Long-Short-Commodities_fact_sheet.pdf (locorrfunds.com) Alex's SEC Link To Return Stacked Funds Prospectuses: https://www.sec.gov/Archives/edgar/data/1924868/000138713122011734/newfound...
Feb 02, 2023•31 min•Season 3Ep. 239
In this episode we answer emails from Justin and Arun. We discuss the last decade of history of the failed use of CAPE ratios as a crystal ball and the general problems with those approaches, and the inherent limitations and problems with using the personal finance recommendations of theoretical economists. 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: CAPE Ratios Article: CAPE Fear: Why C...
Jan 29, 2023•37 min•Season 3Ep. 238
In this episode we take the Dude's suggestion and do a detailed analysis of the Advocate Rising Rate Hedge ETF, ticker symbol RRH. To conduct our analysis of RRH, we use SPLB, using David Stein's Ten Questions to Master Investing: 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 i...
Jan 25, 2023•26 min•Season 3Ep. 237
In this episode we answer emails from Alexi (Dude!) and Spencer. We discuss a recent Bloomberg presentation about what asset classes perform best and worst in inflationary environment, how that informs portfolio construction and why we don't bother with meaningless fund characteristics like mid-caps and dividend-payers for portfolio construction. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional link...
Jan 22, 2023•35 min•Season 3Ep. 236
In this episode we answer emails from Arun, Blake and MyContactInfo. We discuss helping a spouse getting started with investing, what to do with an options strategy portfolio, why index funds still rule over managed funds, good and bad processes for picking funds and various gambling problems. Links: Simple Portfolios for Arun's Spouse: Backtest Portfolio Asset Allocation (portfoliovisualizer.com) Article re Index Funds Beating Managed Funds: Actively Managed Mutual Funds Consistently Fail to Be...
Jan 19, 2023•23 min•Season 3Ep. 235
In this episode we answer emails from Alexi (Dude!), Yangon and Brett. We discuss the momentum factor (again), mid-cap funds and other fund characteristics that are lacking in meaning for the purposes of diversification, financial advisor certifications and investing in BDCs (Business Development Companies). 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: EconoMe Conference: EconoMe Conferen...
Jan 15, 2023•28 min•Season 3Ep. 234
In this episode we answer a trio of emails from MyContactInfo and a piece de resistance from Eric. We discuss why complicated financial products are bad for you, Peter Bernstein's books and what Paul Volcker had to say about gold, and spurious histories of money. And we celebrate our inanity and insanity with Eric. Links: Power of Gold book: The Power of Gold: The History of an Obsession: Bernstein, Peter L., Volcker, Paul A.: 9781118270103: Amazon.com: Books Link to Campbell Harvey article: Gol...
Jan 12, 2023•23 min•Season 3Ep. 233
In this episode we answer emails from Trey, Nita, Christy and Keith. We discuss considerations in bond fund selections (see also Episodes 14 and 16) and the specific fund IEI, timing for transitioning to your retirement portfolio, classifying the Sample Portfolios by intended purposes, and a new tool for analyzing portfolios with managed futures. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional link...
Jan 08, 2023•28 min•Season 3Ep. 232
In this episode we answer emails from MyContactInfo, Cy, Alexi (Dude!) and Chris. We discuss value vs. growth factors, assisting children with investing and inheritances, momentum factor investing and the fund QMOM, and the best audience available. Links: QMOM and MTUM asset correlations: Asset Correlations (portfoliovisualizer.com) QMOM Performance: QMOM – Alpha Architect US Quantitative Momt ETF – ETF Stock Quote | Morningstar MTUM Performance: MTUM – iShares MSCI USA Momentum Factor ETF – ETF...
Jan 05, 2023•30 min•Season 3Ep. 231
In this episode we do an annual review of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . We compare them with standard funds including VBIAX (60/40), VWENX, VWIAX, risk parity funds including RPAR and UPAR, and ultra-diversified funds including AQRIX and QDSIX. And we conclude with some take-away thoughts from this disaster of a year as predicted by Quasimodo. Additional links: Risk Parity Chronicles Resource Page: Resources - Risk Parity Chronicles RPAR and UPAR De...
Jan 01, 2023•37 min•Season 3Ep. 230
In this episode we answer emails from MyContactInfo, Mark and Eric. We discuss rowing machines, the infernal JEPI and other heavily marketed financial products, and what to do as a DIY investor for legacy investing. Happy Holidays! Support the show
Dec 29, 2022•18 min•Season 3Ep. 229
In this episode we answer emails from Drew, Sad Fientist and Popeye. We discuss managed futures and the fund BLNDX, intermediate treasury bonds and general bond considerations and record keeping for the sample portfolios. And throw in some Talladega Nights gold fleece diaper-dom along the way. 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: Father McKenna Center Donation Page: Donate - Fathe...
Dec 25, 2022•30 min•Season 3Ep. 228
In this episode we answer emails from Bradley, Chris and Andreas. We discuss traditional versus Roth considerations in retirement accounts, REITs, some risk parity fundamentals about the interplay between asset classes and macroeconomic environments and how that relates to correlations, a recent risk parity backtest to 1926 and the real reasons to use small cap value allocations. I'm telling you, fellas, you're gonna want that Cowbell! Links: REIT Sectors and Directory: REIT Sectors | Nareit Epi...
Dec 22, 2022•32 min•Season 3Ep. 227
