The Rich Are Different From Us?

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The rules for quantum theory and small particles do not apply directly to any relations between human beings. But people often want to grab things out of physics and misapply them to other domains or other fields. Anderson's point was that's not really how things work. More is indeed different when it comes to managing retirement portfolios, but thank you for allowing me to go on that frolicing detour.

In this episode we answer questions from Alexi, Vaughn, Yamini, Jamie (x2) and Adam. We discuss merger arbitrage as an asset class, the Macro-Allocation Principle applied to an accumulation portfolio, the benefits of investing in insurance companies, tail risk parity and the my favorite science paper and considerations about the lack of really old data.

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:

Alexi's podcast reference: Why Merger Arb Works (aqr.com)

Alexi's correlation analysis of merger arbitrage funds: Asset Correlations (portfoliovisualizer.com)

Artemis Capital Research Page: Research & Market Views — Artemis (artemiscm.com)

Artemis Hawk and Serpent Paper: DocSend

Correlation Analysis of Insurance ETFs: Asset Correlations of KBWP (portfoliovisualizer.com)

Tail Risk Parity Paper: Tail Risk Parity (alliancebernstein.com)

More Is Different Science Paper: anderson72more_is_different.pdf (tamu.edu)

Kitces Article re 4% Rule: Can Morningstar's Withdrawal Rate Report Refute The 4% Rule? (kitces.com)