Episode 402: Getting A Little More Aggressive, A QREARX Redux, And What Does "Value" Mean Anyway
Feb 12, 2025
Get ready to rethink your investment strategies with aggressive risk parity portfolios! Delve into a potential 70% equity allocation and learn how to effectively diversify the remaining assets. Uncover what makes QREARX underperform against traditional indexed REITs, while debating the complexities of defining 'value' in the investment world. Along the way, discover unique approaches and innovative feedback that shape financial success. Plus, don’t miss the exciting plans for a casual meetup at the upcoming Economy Conference!
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volunteer_activism ADVICE
Aggressive Risk Parity Portfolio Allocation
Allocate 70% to equities for higher growth, accepting higher volatility.
Split the remaining 30% between bonds, gold, and managed futures for diversification.
insights INSIGHT
Donation Prioritization
Donating to the Father McKenna Center prioritizes your email.
Frank Vasquez apologizes to Philip for the delay.
insights INSIGHT
Equity Allocation and Diversification
Increasing equity allocation increases returns and volatility.
Diversification still mitigates drawdowns compared to a pure stock portfolio.
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In this episode we answer emails from Philip, David and Keith. We discuss an aggressive risk-parity style portfolio (without leverage), review QREARX, which we analyzed in Episode 81, and how the value factor is determined by various funds and indexes.
Ready to rethink your investment strategies? Discover how pushing the boundaries with aggressive risk parity portfolios can transform your financial growth. Inspired by listener Philip's question, we unravel the potential of a 70% equity allocation, showing you why it might be your ticket to a prosperous retirement with a longer horizon or increased growth needs. Learn how to artfully allocate the remaining 30% across assets like large-cap growth, small-cap value, long-term treasuries, gold, and managed futures for optimal diversification. Plus, get the scoop on our informal meetup at the Economy Conference—it's where finance meets fun.
In this episode, we're not just about strategies but interactions. As we sift through listener emails, we spotlight financial strategies and fund analysis, tackling topics from the intriguing weird portfolio to critiques of funds like QREARX. Unearth the complexities of value stock categorization and challenge the purported benefits of illiquidity premiums in outdated financial structures. As travel plans call for a brief hiatus, we invite you to keep the conversation alive through emails and our website. Tune in for insights, engagement, and a touch of humor designed to entertain and inform our valued listeners.
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