How to Set Expected Return Boundaries for Portfolios

Paul Sracic: I love the idea of a Talra strategy. This idea that you can bleed, I'm making it up three to 5% a year, but you can get a 50% gain or whatever the number is when the VIX spikes and then rebalance again. It's not about forward looking return. It's really about forward looking risks and correlations," he says. "You're essentially trying to buy insurance and you're hoping that cost of insurance is lower than the realized gains down the road"

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