Episode 117: Long-Term Treasury Bond Funds, Ray Dalio vs. Bruce Lee And Our Weekly Portfolio Reviews As Of September 3, 2021
Sep 5, 2021
35:35
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This podcast covers topics such as long-term treasury bond funds and STRIPS funds, a Ray Dalio article about bonds, Iowa's Field of Dreams, and weekly portfolio reviews. The episode also explores alternative ETFs, discusses listener emails, investment advice, and asset class performance analysis.
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Quick takeaways
Explore long-term treasury strips funds like EDV, ZROZ, and GOVZ for higher returns and diversification.
Exercise caution in blindly following expert opinions like Ray Dalio's and practice critical evaluation for sound investment decisions.
Deep dives
Evaluation of Long-Term Treasury Bond Funds
Comparing various long-term treasury bond fund options for a risk parity-style portfolio, the podcast delves into a listener's query about the selection of TLT and explores alternatives like VGLT, SPTL, and SCHQ. The discussion highlights the advantages of long-term treasury strips funds, such as EDV, ZROZ, and GOVZ, with longer effective durations and higher volatility, potentially offering better returns and diversification.
Critical Analysis of Predictions and Investment Strategies
Addressing concerns raised by a listener regarding Ray Dalio's views on long-term treasury bonds, the podcast emphasizes the importance of distinguishing between expert opinions and actionable investment strategies. Discussing cognitive biases like the halo effect, the host advises listeners to critically evaluate predictions and not rely solely on well-known figures' recommendations for portfolio construction, promoting a cautious approach.
Portfolio Performance and Distribution Strategies
Providing an overview of the performance of sample portfolios, the podcast examines market trends and reviews the monthly distributions for different portfolio models ranging from conservative to leveraged options. With insights into asset allocation, distribution amounts, and growth since inception, the episode offers a comprehensive analysis of risk parity strategies and their outcomes.
Discussion of Investment Philosophy and Listener Engagement
Concluding with a reflection on investment philosophies and listener interactions, the podcast emphasizes the importance of critical thinking and selective absorption of information. Through anecdotes and engaging responses to listener emails, the host encourages a balanced approach to financial strategies, incorporating personal research and discernment while appreciating diverse viewpoints in the investment landscape.
In this episode we answer emails from Bob, Kelly, Jack and David. We discuss long term treasury bond and STRIPS funds, Iowa and the Field of Dreams, a Ray Dalio article about bonds from March and a missing link.
And then we go to our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio