How to Build a Risk Parity Portfolio

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The idea of constructing this portfolio doesn't probably make a whole lot of sense because they have different volatility and return characteristics that you want to balance out. None of what is going on here should surprise this author, Brett Arons, who's been writing articles for, I don't know, decades now. A lot of them are quite facile like this one. Stupid as stupid does, Mr Blow. And do not answer the basic questions as to why portfolios like this tend to perform better than simple stock bond portfolios.

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.

Additional links:

Portfolio Visualizer Fund Factor Attribution Tool: Mutual Fund and ETF Factor Performance Attribution (portfoliovisualizer.com)

Rational Reminder Interview of Robert C. Merton: Episode 234: Prof. Robert C. Merton: ICAPM, Retirement, and Models in Finance — Rational Reminder

MarketWatch Article: This 'crazy' retirement portfolio has just beaten Wall Street for 50 years - MarketWatch

Easy Improvements to Marketwatch-featured portfolio: Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)

EconoMe Conference: Programming & Activities - EconoMe (economeconference.com)