How to Assess the Risk of a Levered Portfolio

In this episode we answer emails from Pete, MyContactInfo and Jenzo.   We discuss leveraged funds, a paper about holding them longer term and optimal leverage, analyzing leveraged portfolios, meta-concepts of retirement portfolio planning and how to separate the critical components of a withdrawal strategy (the dogs) from various management techniques, labeling methods and mental accounting (the tails),  and last year's scare paper about hyper-low safe withdrawal rates of poorly constructed international portfolios.

Links: 

Leveraged Portfolios Article/Paper:  Double-Digit Numerics - Articles - The Big Myth about Leveraged ETFs (ddnum.com)

Sample Optimized Portfolios Article:  What Is a Leveraged ETF and How Do They Work? (optimizedportfolio.com)

Analysis of UPRO vs S&P:  https://tinyurl.com/me4c2xj9

Analysis of TNA vs. IWM:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Analysis of TMF vs. TLT:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Portfolio Charts Risk/Reward Calculator:  RISK AND RETURN – Portfolio Charts

Portfolio Visualizer Efficient Frontier Tool:  Efficient Frontier (portfoliovisualizer.com)

Bond Funds vs. Bond Ladders:  Owning Individual Bonds vs. Owning a Bond Fund - A Wealth of Common Sense

Low Safe Withdrawal Rate Paper:  delivery.php (ssrn.com)

Support the show