Risk Parity Radio

Latest Episodes:

Episode 189: Existential Questions About Economy Worship, Ray Dalio and China, And Risk Parity Chronicles Jul 13, 2022

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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 Chronicles Rebalancing Resource: Version 1.1 of the Simple Portfolio Rebalancing Spreadsheet (riskparitychronicles.com)

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Episode 188: All Small, All Value, All The Time And Our Boring Portfolio Reviews As Of July 8, 2022 Jul 09, 2022

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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.
Additional Links:
Asset Correlation Analysis of IJR and IJS: Asset Correlations (portfoliovisualizer.com)
Portfolio Charts First Half of 2022 Portfolio Reviews: Halfway to Nowhere: 2022 Mid-Year Portfolio Rankings – Portfolio Charts

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Episode 187: Biased Business Models, A TSP Rollover And A Crystal Ball, Managed Futures And A Gambling Problem Jul 06, 2022

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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 Investment Musings In An Entertaining Accent: Investing In An Inflationary Environment! - YouTube
Artemis Capital's Hawk And Serpent Paper: DocSend
CME Paper Re CTA Indexes: a-comparison-of-cta-indexes.pdf (cmegroup.com)

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Episode 186: Fortune Favors The Brave, Rose Gardens, Treasury Bonds And Portfolio Reviews As Of July 1, 2022 Jul 02, 2022

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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 Portfolios | Risk Parity Radio.
Additional Links:
Flights To Safety Treasury Bond Correlation Paper from Episode 176: delivery.php (ssrn.com)
Analysis of Golden Butterfly variations with intermediate treasury bonds: Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)

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Episode 185: Interactive Brokers, Private Equity, Asset Gardening, Stagflation And Grumpy Old Men Jun 29, 2022

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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)

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Episode 184: Lazy Authors, Simple Annuities, And Portfolio Reviews As Of June 24, 2022 Jun 26, 2022

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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 Rest of Us Podcast about Annuities: 279: Why All Retirees Should Consider an Income Annuity - Money For The Rest of Us - | Money For The Rest of Us
Immediate Annuities Website: Immediate Annuities - Income Annuity Quote Calculator - ImmediateAnnuities.com
Blue Zones Longevity Test: Live Longer, Better - Blue Zones
The Drive Podcast: The Peter Attia Drive Podcast - Peter Attia (peterattiamd.com)

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Episode 183: The Cost Matters Hypothesis, I-bonds, Emerson And Swiss Pop Music Jun 22, 2022

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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)
ACWI Fund Page: iShares MSCI ACWI ETF | ACWI

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Episode 182: A Portfolio Management Extravaganza And Portfolio Reviews As Of June 17, 2022 Jun 19, 2022

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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 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?

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Episode 181: Fun With Rebalancing Schemes And More Financial Services Industry Malfeasance Jun 15, 2022

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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 Brian #2 (portfoliovisualizer.com)
A Rebalancing Band Improvement on Those Two: https://tinyurl.com/2p8rm2ws
Grant's Leveraged Portfolio with Monthly Data: https://tinyurl.com/58wakx33
Grant's Google Spreadsheet: https://docs.google.com/spreadsheets/d/1Bz8uwpSYkMSaBZjc7vaF7nL7i5B4dKl7XyKXj2D3HVU/edit?usp=sharing
MyContactInfo Vanguard Link: What sets us apart from other asset management firms (vanguard.com)
Article re Schwab re Intelligent Investor Funds: Schwab to Pay SEC $186M Over ‘No Hidden Fee’ Claims for Cash-Heavy Robo | ThinkAdvisor

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Episode 180: Uncle Frank's Book Corner And Portfolio Reviews As Of June 10, 2022 Jun 11, 2022

Show notes

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 Risk Parity Chronicles: Top 10 Risk Parity Resources: #10... Shahidi (2021) (riskparitychronicles.com)
"Taking Stock" by Jordan Grumet (Doc G): Taking Stock: A Hospice Doctor's Advice on Financial Independence, Building Wealth, and Living a Regret-Free Life: Grumet, Jordan, Robin, Vicki: 9781646043545: Amazon.com: Books
"Money for the Rest of Us" book: Money for the Rest of Us: 10 Questions to Master Successful Investing: Stein, J. David: 9781260453867: Books (amazon.com)
RSA Animate Video: RSA ANIMATE: Drive: The surprising truth about what motivates us - YouTube
Prospecting Mimetic Fractals: The Lenses of Wisdom - Prospecting Mimetic Fractals

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