The Rise and Fall of the Risk Parity Ultimate Portfolio

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This one does seem to have attributes that are different or uncorrelated from the other assets in the portfolio, while performing reasonably well. But I don't think I'll be taking this and putting it into any of my main investments right now. We may when we get to July, our first year anniversary of the sample portfolios will be probably making some adjustments in the risk parity ultimate portfolio. So maybe we'll put a little piece of this in there just to see how it works out over time because I think that will be a reasonable experiment or approach.

In this episode we discuss a "guest request" email I received and complete our analysis of the managed futures fund DBMF that we began in Episode 55.

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 it impact your portfolio?
10. Should you invest?

Links:

DBMF Summary Fact Sheet: https://www.imgp.com/us/wp-content/uploads/2021/01/iM-DBi-Managed-Futures-Strategy-ETF-4Q20.pdf

DBMF Semi-Annual Report: https://www.imgp.com/us/wp-content/uploads/2020/09/IMDBIETF-Semiannual-f.pdf

DBMF Prospectus: https://www.imgp.com/us/wp-content/uploads/2021/02/im_dbi_etfs_prospectus.pdf

Asset Correlation Matrix for DBMF: https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=DBMF%2C+VTI%2C+TLT%2C+GLD%2C+PDBC&timePeriod=2&tradingDays=60&months=36