Risk Parity Radio

In this episode we answer two looooong emails from Mark and Andreas.  We discuss Mark's quandaries with a 457 plan and Andreas's Risk Parity fever brought on by topics that include how to choose ETFs for each asset class, leverage in bond funds, TIPS, a proposed portfolio, other alternatives like long-short, market neutral and options strategies and musings about taxes and currency exposures.   And then we conclude with Polo Hofer.Links:Father McKenna Center donation page:  Donate - Father McKenna CenterRisk Parity Chronicles video tutorial on asset swapping:  How to Do an Asset Swap - YouTubeRisk Parity Chronicles series on TIPS:  Eight Observations About TIPS (riskparitychronicles.com)ETF Database:  ETF Database: The Original & Comprehensive Guide to ETFs (etfdb.com)Bloomberg Presentation on Asset Classes in Inflationary Environments:  MH201-SteveHou-Bloomberg.pdf (markethuddle.com)Vanguard Commodities Paper:  Commodity investing and its role in a portfolio (vanguard.com)Antti Ilmanen books:  Books by Antti Ilmanen (Author of Expected Returns) (goodreads.com)EconoMe Conference:  EconoMe Conference - March 17th-19th, 2023Support the show

In this episode we answer emails from Kyle, Esek and Erin.   We discuss 529 plans, what is "enough" in terms of this podcast, and THEN the meta approaches to retirement planning and the importance of distinguishing portfolio construction and allocation strategies from portfolio management techniques, including a tour on the Good Ship Lollipop with the Outlaw Josey Wales.  Errata: I said "Bernstein assumptions" when I meant "Bengen assumptions."And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.EconoMe Conference link:  Programming & Activities - EconoMe (economeconference.com)Support the show

In this episode we answer emails from Gareth, Mark and Alex.  We talk about the meta-differences in investing in various countries, utilities, long dollar funds like UUP, specialized commodities mutual funds like LCSIX and a couple new leveraged funds with mixed asset classes.Links:LCSIX Fact Sheet:  LoCorr-Funds-Long-Short-Commodities_fact_sheet.pdf (locorrfunds.com)Alex's SEC Link To Return Stacked Funds Prospectuses:  https://www.sec.gov/Archives/edgar/data/1924868/000138713122011734/newfound-485apos_112322.htmResolve Asset Management Return Stacking White Paper:  Return Stacking: Strategies For Overcoming a Low Return Environment (investresolve.com)Resolve Asset Management YouTube Channel (Video on Risk Parity):  Risk Parity Is the Answer: What Was the Question? (EP.18) - YouTubeEconoMe Conference:  Programming & Activities - EconoMe (economeconference.com)Support the show

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 AffiliatesMichael 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.comIndustry P/E Ratios Article:  Price to Earnings (P/E) Ratios by Industry | Eqvista2022 Morningstar Report:  2022 Retirement Withdrawal Strategies Report | MorningstarAfford Anything Kotlikoff Interview:  #329: Challenging Your Confirmation Bias, with Economist Larry Kotlikoff - Afford AnythingPlanet Money Economist Interview:  Yale Economist James Choi Analyzes Popular Financial Advice : Planet Money : NPRComplex Adaptive Systems and the Math that Applies To Them:  The Fractal Lens - Prospecting Mimetic FractalsMore Than You Know Book:  More Than You Know: Finding Financial Wisdom in Unconventional Places by Michael J. Mauboussin | GoodreadsSupport the show

In this episode we take the Dude's suggestion and do a detailed analysis of the Advocate Rising Rate Hedge ETF, ticker symbol RRH.To conduct our analysis of RRH, we use SPLB, using David Stein's Ten Questions to Master Investing:1.  What is it?2.  Is it an investment, a speculation, or a gamble?3.  What is the upside?4.  What is the downside?5.  Who is on the other side of the trade?6.  What is the investment vehicle?7.  What does it take to be successful?8.  Who is getting a cut?9.  How does it impact your portfolio?10.  Should you invest?Links:RRH Website:  Advocate Rising Rate Hedge ETF (rrhetf.com)RRH Fact Sheet:  Microsoft PowerPoint - Advocate RRH Fund Fact Sheet Jan 2023 v01 (rrhetf.com)RRH Summary Prospectus:  advocate_rrh_summary.pdf (rrhetf.com)Podcast about RRH:  Scott Peng, PhD, Founder and CEO/CIO, Advocate Capital Management - Alpha Exchange | Podcast on SpotifyAsset Correlation Analysis of RRH:  Asset Correlations (portfoliovisualizer.com)Risk Parity Chronicles TIPs Blog Series (Summary and Conclusions):  Eight Observations About TIPS (riskparitychronicles.com)EconoMe Conference:  Programming & Activities - EconoMe (economeconference.com)Support the show

In this episode we answer emails from Alexi (Dude!) and Spencer.  We discuss a recent Bloomberg presentation about what asset classes perform best and worst in inflationary environment, how that informs portfolio construction and why we don't bother with meaningless fund characteristics like mid-caps and dividend-payers for portfolio construction.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:Steve Hou/Bloomberg Presentation:  MH201-SteveHou-Bloomberg.pdf (markethuddle.com)Market Huddle Video with Steve Hou:  To Survive Disasters, You Need Smiles (guest: Steve Hou) - Market Huddle Ep.201 - YouTubeArticle about the "Factor Zoo":  Taming the Factor Zoo (aqr.com)EconoMe Conference:  EconoMe Conference - March 17th-19th, 2023Support the show

In this episode we answer emails from Arun, Blake and MyContactInfo.  We discuss helping a spouse getting started with investing, what to do with an options strategy portfolio, why index funds still rule over managed funds, good and bad processes for picking funds and various gambling problems.Links:Simple Portfolios for Arun's Spouse:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)Article re Index Funds Beating Managed Funds:  Actively Managed Mutual Funds Consistently Fail to Beat Markets, Study Finds - The New York Times (nytimes.com)EconoMe Conference:  EconoMe Conference - March 17th-19th, 2023Support the show

In this episode we answer emails from Alexi (Dude!), Yangon and Brett.  We discuss the momentum factor (again), mid-cap funds and other fund characteristics that are lacking in meaning for the purposes of diversification, financial advisor certifications and investing in BDCs (Business Development Companies).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: EconoMe Conference:  EconoMe Conference - March 17th-19th, 2023DFA Article About Momentum Strategy Funds:  Have Investors Benefited from Momentum Strategies? | DimensionalMomentum Funds Correlation Matrix:  Asset Correlations (portfoliovisualizer.com)Series 65 Licenses Article:  Series 65 Definition (investopedia.com)Series 7 Licences Article:  Series 7: Definition and Formula for Calculation, With Example (investopedia.com)Brett's BDC Article:  Credit Is Good: BDC Credit May Be Even Better | Seeking AlphaSupport the show

In this episode we answer a trio of emails from MyContactInfo and a piece de resistance from Eric.  We discuss why complicated financial products are bad for you, Peter Bernstein's books and what Paul Volcker had to say about gold, and spurious histories of money.  And we celebrate our inanity and insanity with Eric.Links:Power of Gold book:  The Power of Gold: The History of an Obsession: Bernstein, Peter L., Volcker, Paul A.: 9781118270103: Amazon.com: BooksLink to Campbell Harvey article:  Gold, the Golden Constant, and Déjà Vu (cfainstitute.org)Peter Zeihan video about monetary systems:  Global Currency: The Dollar Ain't Going Nowhere - YouTubeSupport the show

In this episode we answer emails from Trey, Nita, Christy and Keith.  We discuss considerations in bond fund selections (see also Episodes 14 and 16) and the specific fund IEI, timing for transitioning to your retirement portfolio, classifying the Sample Portfolios by intended purposes, and a new tool for analyzing portfolios with managed futures.And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio. Additional link:  Keith's Link to the new tool:  Portfolio Builder - Dunn CapitalSupport the show