Risk Parity Radio

Latest Episodes:

Episode 228: Talladega Nights Christmas Dinner, Composite Fund Considerations, Intermediate Treasury Bonds, And Portfolio Reviews As Of December 23, 2022 Dec 25, 2022

Show notes

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 - Father McKenna Center
BLNDX Information Pages: Standpoint Multi-Asset Fund - Documents (filepoint.com)
Portfolio Charts Article Re Tax-Loss Harvesting TLT: Harvesting the Fall: Why I Sold All My Bonds – Portfolio Charts

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Episode 227: Traditional vs. Roth, Fundamental Risk Parity Principles and Correlations, and Talkin' About that Cowbell! Dec 22, 2022

Show notes

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
Episode 5 Bridgewater Article on Risk Parity Fundamentals: Microsoft Word - 2009.12 AW Info Pack.doc (granicus.com)
Early Retirement Now Article re Small Cap Value: My thoughts on Small-Cap and Value Stocks – Early Retirement Now
Analysis of Small-Cap Value vs. Total Market since 1972: Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)
Bloomberg Presentation re Performance of Various Asset Classes in Inflationary Environments: MH201-SteveHou-Bloomberg.pdf (markethuddle.com)
Merriman Podcast (12/21/2022) on Small Cap Value Stocks: 10 reasons small-cap value can make you richer - Paul Merriman

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Episode 226: Tilting At The Dude's Dragons, Market/Limit Orders, DIY Investing Since 2011 And Portfolio Reviews As Of December 16, 2022 Dec 18, 2022

Show notes

In this episode we answer emails from Alexi (a/k/a "the Dude"), Matt and Daniel. We talk about Alexi's Dragon-style portfolio experiments (and provide links), market orders vs. limit orders and miscellaneous trading advice, and the evolution of DIY investing with ETFs and other funds since 2011.
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:
Alexi's Dragon-style portfolios: Alexi's Portfolio Asset Allocation (portfoliovisualizer.com)
Alexi's Dragon-style portfolios with longer data-set funds: Alexi's Portfolio Asset Allocation (Proxy Funds) (portfoliovisualizer.com)

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Episode 225: Rebalancing Basics, Cowbell in the U.K. And Poking At The New Deathstar Dec 14, 2022

Show notes

In this episode we answer emails from Charlie, Jimi and Freya. We provide explanations of the concepts of rebalancing and reallocation, talk about a listener's favorite sound clip and about creating a simple starter portfolio for a very small U.K. investor. And we take a poke at the new Morningstar report on retirement forecasting and projected safe withdrawal rates, and the vast changes they made from last year.
Links:
New Morningstar Report: 2022 Retirement Withdrawal Strategies Report | Morningstar
Michael Kitces Optimal Rebalancing Article: Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com)
Ernest P. Worrell: Ernest P. Worrell - Wikipedia
Jim Varney: Jim Varney - Wikipedia
"Hey Vern It's Earnest" Clip: Hey Vern It's Ernest.m4v - YouTube
Paul Merriman "Sound Investing" Podcast on Portfolio for Grandchild: How to Create a Financial Legacy for a Child - Sound Investing | Podcast on Spotify
Portfolio Charts "My Portfolio" Analyzer: MY PORTFOLIO – Portfolio Charts
ISVL Fund Page: iShares International Developed Small Cap Value Factor ETF | ISVL

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Episode 224: Correlation and Monetary Musings, The Physical Metals Racket and Portfolio Reviews As Of December 9, 2022 Dec 11, 2022

Show notes

In this episode we answer emails from Brian, Alexi (the Dude!) and Geordi. We discuss how central bank activities may affect asset correlations, applying the history of money to today's crypto currency-related issues, investing in volatility, another podcast about DBMF, and the follies and foibles of the physical precious metals racket and the participants therein, especially the newsletter and book-touting Hedgehogs.
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:
Bloomberg Presentation re Asset Performances in Inflationary Environments: MH201-SteveHou-Bloomberg.pdf (markethuddle.com)
YouTube video explaining Bloomberg presentation: To Survive Disasters, You Need Smiles (guest: Steve Hou) - Market Huddle Ep.201 - YouTube
Interview of Andrew Beer about DBMF (managed futures): 214 Systematic Investor Series ft. Andrew Beer – October 16th, 2022 | Top Traders Unplugged

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Episode 223: A Celebrity Deathmatch About CAPE Ratios And Related Topics Dec 07, 2022

Show notes

In this episode we answer an email from Daniel, who asks a follow-up question to episode 209 about CAPE ratios and Big ERN's blog. We then recount a Zoom chat and email exchanges between the host and Karsten Jeske about that topic and related ones and an analysis of a sample risk-parity style portfolio using the Early Retirement Now SWR Toolbox. It's similar to "Celebrity Deathmatch" in entertainment value.
We also talk briefly about Risk Parity Chronicles, The upcoming EconoMe Conference with Diania Merriam and the upcoming event at the Father McKenna Center.
Links ("the best links, the best"):
Father McKenna Center Lessons and Carols Event Link: Lessons and Carols - Father McKenna Center
Risk Parity Chronicles: Risk Parity Chronicles
EconoMe Conference: EconoMe Conference - March 17th-19th, 2023
Early Retirement Now SWR Toolbox: An Updated Google Sheet DIY Withdrawal Rate Toolbox (SWR Series Part 28) – Early Retirement Now
Safe Withdrawal Series Part 34: Using Gold as a Hedge against Sequence Risk – SWR Series Part 34 – Early Retirement Now
Kitces CAPE Ratio Article 2014: Shiller PE: Bad Market Timing, Good Retirement Planning (kitces.com)
Kitces CAPE Ratio Article 2016: Reducing Retirement Return Assumptions For High Valuation? (kitces.com)
Kitces Critique of November 2021 Morningstar Forecasts Report: Can Morningstar's Withdrawal Rate Report Refute The 4% Rule? (kitces.com)
Morningstar 2011 Article About Predicting the Next Decade (classic misuse of P/E ratios): Your Forecasts for Stock and Bond Returns | Morningstar
Early Retirement Now Small-Cap and Value Blogpost: My thoughts on Small-Cap and Value Stocks – Early Retirement Now
Early Retirement Now Options Strategy Blogpost: Passive income through option writing: Part 8 – A 2021 Update – Early Retirement Now
The Market Huddle Podcast re Bloomberg Analysis: To Survive Disasters, You Need Smiles (guest: Steve Hou) - Market Huddle Ep.201 - YouTube
Bloomberg Presentation: MH201-SteveHou-Bloomberg.pdf (markethuddle.com)

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Episode 222: Holy Volatility Allocations, Charitable Event Promotion And Portfolio Reviews As Of December 2, 2022 Dec 04, 2022

Show notes

In this episode we answer emails from Jamie, Chris and The Dude (Alexi). We give do some listener appreciation and talk about The Dude's proposed volatility-related allocation.
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.
And we also invite you to an event at the Father McKenna Center in Washington, DC -- Lessons and Carols on December 8 at 7 pm.
Additional links:
Father McKenna Center Lessons and Carols: Lessons and Carols - Father McKenna Center
Jamie's Article re Luck and Success: Winning a Nobel Prize Takes Luck as Much as Talent - WSJ
The Dude's Proposed Volatility Allocation: 7% CCOR, 5% YCS, 5% EUO and 3% VIXM (20% overall allocation).
CCOR fund page: CCOR ETF | Core Alt Capital (corealtfunds.com)
Correlation Matrix with Alexi's Funds and BTAL: Asset Correlations (portfoliovisualizer.com)
Backtest using Alexi's volatility allocations: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

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Episode 221: All Roads Lead To More Cowbell -- Shplendid! Nov 30, 2022

Show notes

In this episode we answer emails from Gregory, MyContactInfo, Ralphio and Spencer. We discuss the overriding currency speculation aspect of investing in non-U.S. funds, keeping things simple during accumulation, leveraged funds, some academic analyses of managed funds and what to make of it, how to identify the basic factors of given funds and the Shplendid aspects of MORE COWBELL.
Links:
Paul Merriman's "Best in Class" Fund Identification Page: Best-in-Class ETF Portfolios - Paul Merriman
Rational Reminder Leveraged Portfolios Video: Investing With Leverage (Borrowing to Invest, Leveraged ETFs) - YouTube
Rational Reminder Interview of Professors Berk and Binsbergen: Episode 220: Jonathan Berk and Jules van Binsbergen: The Arithmetic of Active Management, Revisited — Rational Reminder
Berk and Binsbergen 2014 Paper re Active Management: delivery.php (ssrn.com)
Rational Reminder Interview of Eduardo Repetto of Avantis: Episode 228: Eduardo Repetto: Deep Dive with Avantis Investors' CIO — Rational Reminder
Rick Ferri Interview of Eduardo Repetto of Avantis: Episode 43: Bogleheads on Investing – guest Eduardo Repetto, host Rick Ferri – Rick Ferri, CFA
Morningstar Analysis of IJR: IJR – Portfolio – iShares Core S&P Small-Cap ETF | Morningstar

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Episode 220: The Follies And Foibles Of Managed Funds And Portfolio Reviews As Of November 25, 2022 Nov 27, 2022

Show notes

In this episode we answer emails from Nick, Mr. Harris and Howard. We discuss the hoary details of the tax reporting of GLDM, following your rebalancing rules and why relying on the past performance of managed mutual funds probably is not a good idea.
And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio. With rebalancing this week!
Additional links:
Father McKenna Center Giving Page: Donate - Father McKenna Center
Optimal Rebalancing Article: Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com)
SPIVA Report for 2021: SPIVA U.S. Year-End 2021 Scorecard (spglobal.com)
Morningstar Analyzer -- PRWCX: PRWCX – Portfolio – T. Rowe Price Capital Appreciation | Morningstar
Portfolio Visualizer Comparison Analyses of PRWCX: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

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Episode 219: The Ins And Outs Of Buffered Funds, Gold and Bond Ladders Nov 23, 2022

Show notes

In this episode we answer emails from Uday, Rick, Anderson and Jacques. We discuss Giving Tuesday and the Father McKenna Center, new tutorials at Risk Parity Chronicles about asset swaps and wash sales, buffered ETFs and scandalous structured products, why we still love gold (a little), getting exposure to small cap value -- yada, yada, yada -- and bond ladders vs. bond funds.
Links:
Father McKenna Center Homepage: Home - Father McKenna Center
Father McKenna Center Giving Page: Donate - Father McKenna Center
Risk Parity Chronicles Asset Swap Post And Tutorials: Risk Parity Basics: Asset Swaps and the Important Wash Sale Rule (riskparitychronicles.com)
Analysis of Buffered Fund BSEP: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)
Portfolio Charts "Ingredients" Article: Three Secret Ingredients of the Most Efficient Portfolios – Portfolio Charts
Morningstar Analyzer: VEXMX – Portfolio – Vanguard Extended Market Index Investor | Morningstar
Ben Carlson Article: Owning Individual Bonds vs. Owning a Bond Fund (awealthofcommonsense.com)
Finance Buff Article: Two Types of Bond Ladders: When to Replace a Bond Fund or ETF (thefinancebuff.com)