Episode 256: Exploring The Transcendentalists, Basic Portfolio Comparisons, Bill Bernstein's Bond Ladder And Portfolio Reviews As Of April 21, 2023
Risk Parity Radio
00:00
The Benefits of a Risk Parity Portfolio
A risk parity portfolio does not mean your portfolio will always be in the black, does it? No. Sometimes the non-correlated assets can't save a portfolio from taking on losses. The golden butterfly had down years in about 10 of those instances, so less than 20% and that its longest time to recover was three or four years. A 60-40 portfolio was down 28% of the time in the same time period,. That was worse. Longest time to recover for that portfolio was over 12 years, which is very undesirable when you're drawing down on a portfolio.
Transcript
Play full episode
