In this engaging discussion, Alex Shahidi, Co-CIO and managing partner of Evoke Advisors, shares his expertise on risk parity investing and portfolio diversification. He critiques the traditional 60-40 asset allocation model, advocating for a balanced approach that mitigates risks across various economic scenarios. The conversation covers market history, the strategic significance of cash and TIPS during inflation, and how innovative tools like RPAR and UPAR can enhance investment strategies. Discover insights to optimize your portfolio while navigating volatile markets.
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volunteer_activism ADVICE
Managing Investment Risks
Minimize catastrophic loss by diversifying your investments.
Consider the risk of long-term underperformance and traditional volatility.
insights INSIGHT
The Myth of 60/40
A 60/40 portfolio is not truly balanced; it's 98% correlated to the stock market.
True balance requires diversifying across assets with different economic biases.
insights INSIGHT
Diversification During Downturns
During economic downturns, stocks and commodities often decline, while bonds, gold, and TIPS can rise.
Diversifying across these assets mitigates growth risk.
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Unlock the secrets to crafting a truly balanced investment strategy that withstands the test of time and market volatility. Join us for an insightful episode with Alex Shahidi from Evoke Advisors as we dissect risk parity investing and its potential to revolutionize traditional portfolio strategies. Discover how this approach aims to mitigate the shortcomings of the classic 60-40 asset allocation model by evenly distributing risk across various economic environments and asset classes.
We challenge conventional wisdom by diving into historical market events like the dot-com bubble and the global financial crisis, examining how they exposed vulnerabilities in traditional investment strategies. With risk parity, we introduce a framework that seeks to spread growth and inflation risks more evenly, helping investors avoid the pitfalls of concentrating holdings in a single asset class. This conversation is packed with strategies to reduce volatility and provides insights into the dynamics of constructing a diversified portfolio, especially in the context of cash dominance and shifting economic landscapes.
Explore the complexities of leveraging balanced portfolios with innovative tools like RPAR and UPAR, and learn how they can serve as strategic alternatives to maximize your investment potential. With real-world examples and expert insights, we delve into the nuances of economic cycles, interest rates, and inflation expectations. Gain an understanding of how these factors impact investments and why a diversified approach can offer both security and enhanced returns. Whether you're an aggressive investor or seeking a new diversification strategy, this episode offers valuable perspectives on navigating the ever-evolving financial markets.
DISCLAIMER – PLEASE READ: This is a sponsored episode for which Lead-Lag Publishing, LLC has been paid a fee. Lead-Lag Publishing, LLC does not guarantee the accuracy or completeness of the information provided in the episode or make any representation as to its quality. All statements and expressions provided in this episode are the sole opinion of Evoke Advisors and Lead-Lag Publishing, LLC expressly disclaims any responsibility for action taken in connection with the information provided in the discussion. The content in this program is for informational purposes only. You should not construe any information or other material as investment, financial, tax, or other advice. The views expressed by the participants are solely their own. A participant may have taken or recommended any investment position discussed, but may close such position or alter its recommendation at any time without notice. Nothing contained in this program constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in any jurisdiction. Please consult your own investment or financial advisor for advice related to all investment decisions.
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