Risk Parity Radio

Latest Episodes:

Episode 10: Portfolio Reviews As Of August 21, 2020 And An Explication Of The Aggressive Fifty-Fifty Portfolio Aug 23, 2020

Show notes

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 analyzer we used to compare the Aggressive Fifty Portfolio with a Total Stock Market portfolio: https://www.portfoliovisualizer.com/backtest-portfolio

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Episode 9: How To Choose Investments Using A Process And An Application To A Preferred Stock Fund Aug 20, 2020

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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 of PFF: https://www.ishares.com/us/products/239826/ishares-us-preferred-stock-etf
Portfolio Visualizer's Asset Correlation Analyzer: https://www.portfoliovisualizer.com/asset-correlations
"Money for the Rest of Us: 10 Questions To Master Successful Investing": https://moneyfortherestofus.com/how-to-invest-book/
The 10 Questions To Ask When Considering An Investment:
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 8: Portfolio Reviews As Of August 14, 2020 And An Explication Of The Accelerated Permanent Portfolio Aug 16, 2020

Show notes

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: https://www.portfoliovisualizer.com/backtest-portfolio

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Episode 7: How To Construct A Risk Parity Style Portfolio From Basic Principles Aug 13, 2020

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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/
Ray Dalio explains the Holy Grail principle of risk-parity style investing: https://www.youtube.com/watch?v=Nu4lHaSh7D4
Ray Dalio reveals the most basic components of most risk-parity style portfolios:
https://www.youtube.com/watch?v=KA7U8xT_2Dk
Portfolio Visualizer Asset Correlation Calculator: https://www.portfoliovisualizer.com/asset-correlations
Portfolio Charts Master Portfolio Analyzer: https://portfoliocharts.com/portfolios/

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Episode 6: Portfolio Reviews As Of August 7, 2020 And An Explanation Of The Golden Ratio Portfolio Aug 09, 2020

Show notes

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/Golden_ratio

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Episode 5: A Short History of Risk Parity and Asset Allocation (Part 2) Aug 05, 2020

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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 CFA Manual Chapter 4 (G. Allen): Silver Bullet Or A Bridge Too Far: CFA Manual Risk Parity Chapter-2018.pdf - Google Drive

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Episode 4: Portfolio Reviews as of July 31, 2020 with a Focus on the Golden Butterfly Portfolio Aug 02, 2020

Show notes

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/

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Episode 3: A Short History of Risk Parity and Asset Allocation (Part I) Jul 30, 2020

Show notes

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: The 70 Year History of Investment Consulting: 1950-2020 | Nasdaq
Why the Best-Laid Investment Plans Usually Go Wrong: And How You Can Find Safety and Profit in an Uncertain World: https://www.amazon.com/Best-Laid-Investment-Plans-Usually-Wrong/dp/0671672924

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Episode 2: Portfolio Reviews as of July 24, 2020 with a Focus on the All Seasons Portfolio Jul 27, 2020

Show notes

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

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Episode 1: Introduction to Risk Parity Radio Jul 25, 2020

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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!

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