Show Us Your Portfolio: Corey Hoffstein
Excess Returns
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Return Stacking
I'm trying to take the same core idea and just diversify it further. To have return you have to take risk stocks and bonds represent two of the big muscle movements when it comes to risk premium that are available. The big risk of a only stock and bond portfolio though, in my opinion is inflation risk. Both of those assets are highly sensitive to inflationary shocks as we saw last year. Risk parity strategies would look to something like commodities. I'm not a huge fan of commodities because they do exceptionally poorly during deflationary environments.
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