For this week’s special episode, Adam, Mike, Rodrigo and Richard gathered to explore the building blocks of an ultimate All Weather portfolio. Our conversation included:
- The blind spots of the 60/40 stock-bond portfolio
- Regime dependency and economic shocks
- Diversifiable versus non-diversifiable risks
- How to create an optimal portfolio that can navigate most regimes
- Why Global Risk Parity is the natural starting point for any investor with a long-term view
- Different ways to implement Risk Parity
- Time horizons and rebalancing
- Tactical tilts and the beta-alpha continuum
- Yield as another proxy for risk
- Global Carry as a complement to risk parity beta
- The Existence Proof as a threat to alpha
- Trend following, seasonality, carry, counter-trend, relative value and volatility
- Why one man’s alpha can sometimes be another’s (smart) beta
- Ensembles and thinking beyond traditional factors
- Considering speed and size
- And much more
This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management Inc.
*ReSolve Global Inc. refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global Inc. is a registered person with the Cayman Islands Monetary Authority.
