ReSolve Riffs with the ReSolve Crew on Optimizing Risk Parity and Stacking Alphas
Resolve Riffs Investment Podcast
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The Risk That Cannot Be Diversified Away
Investors move their money out of safe cash, which can be immediately used for consumption and put it into risky assets like stocks or longer turm bonds. They do that so that they can earn a premium over what they would get from holding all their money in tea bills. But that assumes that those risky assets are priced to deliver an excess returned over tea bills. So we're seeing that to day, where, over the course of so far this year, certainly, the fed has come out and said, we're going to raise interest rates,. And investors have been repriced rates all along the yield curve.
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