A detailed conversation between friends explores the skepticism towards long term bonds and the use of double inverse products like TBT in investment strategies. The chapter delves into concerns about risk parity design and difficulties in modeling leveraged inverse funds while also weaving in playful exchanges with a Patreon supporter and references to charity.
In this episode we answer emails from Stuart, George and MyContactInfo. We discuss a follow-up on another listener's accumulation portfolio, the foibles of trying to predict future interest rates and common fallacious reasoning, levered inverse treasury bond funds and other funds that do well in rising interest rate environments, and a follow up on our target date fund rant episode (#333).
Links:
Portfolio Visualizer Analysis of UPRO and synthetic alternatives: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)
TestFol Analysis with an inverse treasury bond exposure: testfol.io
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