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Keeping it Simple | Ep. 9: Portfolio Efficiency and Return Stacking

Keeping it Simple with Simplify Asset Management

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Is the Regime of Correlation Requiring Portfolios to Be Reconstituted?

The beta component has dominated under most regimes. If we do enter an environment, again, where inflation is the headline risk, i expect stocks and bonds to exhibit positive correlation. And so i would argue, if your ants er out of the a, how do you g escape a, you know, low return, 60 forty environment? Is just ta lever up your 60 forty? Well, you're taking a tremendous amount of correlation risk there. What we want to do is use leverage, thoughtfully, to introduce something that can d risk that inflation,. When you were aspier returns, deck in portable, alpa risk, paroty, a margin leveragesal ame thing

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