Risk Parity Radio Episode 238: CAPE Crusading, NEWMAN! And Portfolio Reviews As Of January 27, 2023
In this episode we answer emails from Justin and Arun. We discuss the last decade of history of the failed use of CAPE ratios as a crystal ball and the general problems with those approaches, and the inherent limitations and problems with using the personal finance recommendations of theoretical economists.
And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.
Additional links:
CAPE Ratios Article: CAPE Fear: Why CAPE Naysayers Are Wrong | Research Affiliates
Michael Kitces CAPE Article (2016): Reducing Retirement Return Assumptions For High Valuation? (kitces.com)
Kitces Critique of November 2021 Morningstar Forecasts Report: Can Morningstar's Withdrawal Rate Report Refute The 4% Rule? (kitces.com)
Sector P/E Ratios Article: Sector Valuation: Shiller PE By Sectors - GuruFocus.com
Industry P/E Ratios Article: Price to Earnings (P/E) Ratios by Industry | Eqvista
2022 Morningstar Report: 2022 Retirement Withdrawal Strategies Report | Morningstar
Afford Anything Kotlikoff Interview: #329: Challenging Your Confirmation Bias, with Economist Larry Kotlikoff - Afford Anything
Planet Money Economist Interview: Yale Economist James Choi Analyzes Popular Financial Advice : Planet Money : NPR
Complex Adaptive Systems and the Math that Applies To Them: The Fractal Lens - Prospecting Mimetic Fractals
More Than You Know Book: More Than You Know: Finding Financial Wisdom in Unconventional Places by Michael J. Mauboussin | Goodreads