Risk Parity Radio

In this episode we give Mary a break and analyze the ProShares Ultrapro S&P500 ETF, ticker symbol UPRO, using David Stein's Ten Questions to Master Investing, which are: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?This fund analysis was suggested/requested by listener Anderson.Links:UPRO Fact Sheet:   Prosharesfactsheetupro.pdfUPRO Summary Prospectus:   UPRO_summary_prospectus.pdf (proshares.com)UPRO Semi-Annual Report:  Report 11-30-2021 (proshares.com)Leveraged Funds And How They Work:  What Is a Leveraged ETF and How Do They Work? (optimizedportfolio.com)Nine Best Leveraged Funds Article:  The 9 Best Leveraged ETFs To Enhance Portfolio Exposure (2022) (optimizedportfolio.com)Leverage Generally And Links To Sample Levered Portfolios:  Leverage | Optimized PortfolioSupport the show

In this episode we answer emails from Julie T, Justin, Jeffrey, Anderson and the mysterious Mycontactinfo.   We discuss Golden Ratio modifications, TIPs vs. commodities and stocks for inflation YTD, asset roles in Risk Parity Portfolios, volatility funds, the good, bad and ugly of dividend investing, ideas for future episodes and Professor Lo's new book (again).  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:Golden Ratio Portfolio with Utilities:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)Money For The Rest of Us Podcast Episode #374:  Lifecycle Investing, Risk Parity Portfolios, and Why Stocks Are Riskier in the Long RunMoney For The Rest of Us Podcast Episode #306:  Three Approaches to Asset Allocation | Money For The Rest of Us Jeffrey's Link re Dividend Investing:  Dividend Millionaires - The Compound InvestorDividend Collapses Article:  The Biggest Dividend Stock Collapses of All Time - Dividend.comLink To Podcast With Professor Lo:  Andrew Lo: Finding the Perfect Portfolio--a 'Never-Ending Journey' | Morningstar Support the show

In this episode we answer questions from Steve, Alexi, Mycontactinfo and Brandon.  We discuss choosing REITS better than you might with a REIT fund, "inflation winners and losers", the new "In Pursuit of the Perfect Portfolio" book, and the preferred shares fund PFF.Links:VNQ holdings:  VNQ - Vanguard Real Estate ETF | VanguardNAREIT REIT Sectors:  REIT Sectors | NareitREIT correlation matrix:  Asset Correlations (portfoliovisualizer.com)Alexi's Article on Assets that Benefit from Inflation:  What Works When Inflation Hits? | Man Institute | Man GroupPerfect Portfolio book link:  In Pursuit of the Perfect Portfolio | Princeton University PressSupport the show

In this episode we answer questions from Alexi, Vaughn, Yamini, Jamie (x2) and Adam.  We discuss merger arbitrage as an asset class, the Macro-Allocation Principle applied to an accumulation portfolio, the benefits of investing in insurance companies, tail risk parity and the my favorite science paper and considerations about the lack of really old data.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:Alexi's podcast reference:  Why Merger Arb Works (aqr.com)Alexi's correlation analysis of merger arbitrage funds:  Asset Correlations (portfoliovisualizer.com)Artemis Capital Research Page:  Research & Market Views — Artemis (artemiscm.com)Artemis Hawk and Serpent Paper:  DocSendCorrelation Analysis of Insurance ETFs:  Asset Correlations of KBWP (portfoliovisualizer.com)Tail Risk Parity Paper:  Tail Risk Parity  (alliancebernstein.com)More Is Different Science Paper:  anderson72more_is_different.pdf (tamu.edu)Kitces Article re 4% Rule:  Can Morningstar's Withdrawal Rate Report Refute The 4% Rule? (kitces.com)Support the show

In this episode we address emails from Rory (x2), Frank, Andy and Mark.  We discuss UPRO issues, where to put gold, role models for retirement, Andy's experiments with UPAR and Mark's wonderful new tool and options strategies for reducing stock market risk.Links:Kitces Analysis of Morningstar Safe Withdrawal Rate Report:  Can Morningstar's Withdrawal Rate Report Refute The 4% Rule? (kitces.com)Andy's UPAR Bogleheads Forum Link:  The Tobin Two-Fund Portfolio - Bogleheads.orgMark's Most Excellent Portfolio Shortcutter Tool:  https://docs.google.com/spreadsheets/d/1lG18XrJA8-oODSNC0nV2T5nyVPAByU7p901oYn_ECDw/edit#gid=1553040997A famous stand-up philosopher:  A Standup Philosopher - YouTubeSupport the show

In this episode we answer emails from Jeff (x2), Popeye, and the anonymous Mycontactinfo (x2).  We discuss some feeble attempts at disparagement by former financial media people and put them in context, an essay on taking your money off the table and weathering financial downturns by Bill Bernstein and an free course from MIT.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:The Bernstein Essay:  A Day to Remember - HumbleDollarThe MIT Course with Andrew Lo:  Course | Adaptive Markets: Financial Market Dynamics and Human Behavior | edXSupport the show

In this episode we give Mary a break and analyze the ProShares Ultrashort Australian Dollar ETF, ticker symbol CROC, using David Stein's Ten Questions to Master Investing, which are: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?This fund analysis was suggested/requested by listener Alexi/Dude.Links:  CROC Fact Sheet:  prosharesfactsheetcroc.pdfCROC Information Page:  CROC (proshares.com)CROC Correlation Analysis:  Asset Correlations with CROC (portfoliovisualizer.com)CROC/BTAL in Golden Butterfly Portfolio:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)CROC/BTAL in Golden Ratio Portfolio:  https://tinyurl.com/2tcemax6CROC/BTAL in Leveraged Risk Parity Portfolio:  https://tinyurl.com/3w7rpk6dSupport the show

In this episode we pay tribute to Clark Bender and then answer emails from Chris, Roy, Dustin, Daniel and Kevin.  We discuss M1 trading issues, PDBC's 2021 returns, reinvesting dividends, sample portfolio returns, what to do about old stocks lying around, Dustin's sample  risk parity portfolio, I-bonds, considerations for international funds, Tom Waits, and an improvised reading list.  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:Board Game Times podcast:  Welcome to Board Game Times! - Board Game TimesRPR Tutorial #4:  Tutorial #4: Portfolio Visualizer Monte Carlo Simulator -- Introduction - YouTubePDBC Performance Statistics:  Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) Performance History - Yahoo FinanceSupport the show

In this episode we address emails from "Harry", Anderson, Brian and Alan.  We discuss transitioning a mostly crypto portfolio to retirement, stablecoins, rebalancing bands, 3-5% flexible withdrawal strategies, MORE stablecoin questions and the basics of transitioning from an accumulation portfolio to a retirement portfolio.Links:Optimal Rebalancing Article:  Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com)Never Pay Taxes Again Article:  Never Pay Taxes Again - Go Curry Cracker!Support the show

Dive into the intriguing world of optimal asset allocation strategies for retirement with a focus on the golden butterfly portfolio. Explore the high-stakes game of using leveraged funds during market downturns and the psychological hurdles that come with it. The pitfalls of market timing and the influence of financial media are also examined, urging smarter investment choices. Finally, gain valuable insights from analyzing small cap value stocks versus diversified portfolios, using Monte Carlo simulations to understand risk and performance.