How to Leverage Your Portfolio to Earn a Higher Return

The S&P 500 is levered up two to one on the actual equity in the firm. A risk parity portfolio would have 50% in bonds and 25% in stocks, 25% in commodities. With less vulnerability, it's just bad timing luck that can lead to a market crash. The idea is you don't know what kind of economic regime you're going to be in over the next five, 10 years.