In this episode, which is a follow-up to Episode 25, we analyze as an investment in utilities for a risk-parity style portfolio using David Stein's 10 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?Links and References:Optimal Finance Daily Podcast Episode 1329:  https://oldpodcast.com/1329-is-value-investing-dead-by-vitaliy-katsenelson-of-contrarian-edge-on-growth-stocks-fang/Fi-Lexible Webinar (scheduled for Nov 1, 2020):   https://www.eventbrite.com/e/free-webinar-are-you-fi-lexible-tickets-125036815481Episode 7 re the Three Principles:   https://www.riskparityradio.com/podcast/episode/4ec882cb/episode-7-how-to-construct-a-risk-parity-style-portfolio-from-basic-principlesCorrelation Matrix for Utility ETFs:  https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=VTSAX%2C+TLT%2C+GLD%2C+VNQ%2C+XLU%2C+VPU%2C+FUTY%2C+IDU&timePeriod=2&tradingDays=60&months=36Portfolio Visualizer Backtest of Portfolios with REITs and Utilities:  https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&showYield=false&reinvestDividends=true&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=VTI&allocation1_1=42&allocation1_2=42&allocation1_3=42&symbol2=TLT&allocation2_1=26&allocation2_2=26&allocation2_3=26&symbol3=GLD&allocation3_1=16&allocation3_2=16&allocation3_3=16&symbol4=XLU&allocation4_1=10&allocation4_3=5&symbol5=VGSIX&allocation5_2=10&allocation5_3=5&symbol6=CASHX&allocation6_1=6&allocation6_2=6&allocation6_3=6Support the show

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfoliosWe also compare the All Seasons Portfolio with the Vanguard Wellesley Fund at Portfolio Visualizer.  Link to analysis:https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&showYield=false&reinvestDividends=true&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=VWINX&allocation1_1=100&symbol2=VTI&allocation2_2=30&symbol3=TLT&allocation3_2=40&symbol4=VGIT&allocation4_2=15&symbol5=GLD&allocation5_2=7.5&symbol6=PDBC&allocation6_2=7.5Link to White Coat Investor interview of Larry Swedroe and transcript:https://www.whitecoatinvestor.com/evidence-based-investing-with-larry-swedroe-podcast-181/Support the show

This episode takes a broad look and sector funds and compares them with the overall stock market for diversification purposes.  Thanks to listener Micah for the question.Links:SPDR Report on the SPDR Select ETFs:  https://www.sectorspdr.com/sectorspdr/Pdf/General%20Documents/Q3%202020%20Sector%20SPDR%20Quarterly%20GuideCorrelation Analysis of All Eleven SPDR Sector Funds from 2018 to 2020:  https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=SPY%2C+XLY%2C+XLP%2C+XLE%2C+XLF%2C+XLV%2C+XLI%2C+XLB%2C+XLK%2C+XLU%2C+XLRE%2C+XLC&timePeriod=2&tradingDays=60&months=36Correlation Analysis of Nine SPDR Sector Funds from 1999 to 2020:  https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=SPY%2C+XLY%2C+XLP%2C+XLE%2C+XLF%2C+XLV%2C+XLI%2C+XLB%2C+XLK%2C+XLU&timePeriod=2&tradingDays=60&months=36Support the show

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfoliosWe also compare the Aggressive Fifty-Fifty Portfolio with two Dave Ramsey-Style Portfolios using the tools at Portfolio Visualizer.  Relevant links:White Coat Investor article about a Ramsey-style portfolio:  https://www.whitecoatinvestor.com/dave-ramsey-asset-allocation/Portfolio Visualizer Face-Off Analysis (including correlation analysis under the Assets tab):https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=7.5&relativeDeviation=0.0&showYield=true&reinvestDividends=true&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=PFF&allocation1_1=17&symbol2=TMF&allocation2_1=33&symbol3=GLD&allocation3_1=0&symbol4=UPRO&allocation4_1=33&symbol5=VIVIX&allocation5_2=25&symbol6=VMGRX&allocation6_2=25&allocation6_3=25&symbol7=VSCIX&allocation7_2=25&symbol8=VGTSX&allocation8_2=25&symbol9=VGIAX&allocation9_3=25&symbol10=VSGIX&allocation10_3=25&symbol11=VWIGX&allocation11_3=25&symbol12=IEF&allocation12_1=17Support the show

We analyze a portfolio recently proposed in a MarketWatch article that is intended to replace the standard 60/40 stock/bond retirement portfolio.Links:MarketWatch article:  https://www.marketwatch.com/articles/a-60-40-stocks-bond-strategy-no-longer-works-heres-what-to-do-instead-51601653163?mod=mw_latestnewsPortfolio Visualizer Comparison Analysis:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)Portfolio Visualizer Asset Correlation Analysis of the MarketWatch portfolio:   Asset Correlations (portfoliovisualizer.com)Support the show

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfoliosAnd here is a nice picture of Walden Pond on October 11, 2020:https://photos.app.goo.gl/sksbGcENz62pb8PVASupport the show

In this episode, which is Part Two of Two, we conclude the analysis of REITS as an investment that we began in Episode 19, using David Stein's 10 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?We cover the questions six through ten in this episode.Helpful links:Backtest of REITs versus the stock market comparison:https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1972&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&asset1=TotalStockMarket&allocation1_1=100&asset2=REIT&allocation2_2=100Composition of the ETF VNQ:  https://www.marketwatch.com/investing/fund/vnq/holdings?mod=mw_quote_tabCorrelation Matrix of the REITs and funds mentioned:  https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=VTI%2C+VNQ%2C+VNQI%2C+REET%2C+BXP%2C+PLD%2C+O%2C+SPG%2C+AVB%2C+WY%2C+VTR%2C+WELL%2C+PSA%2C+AMT%2C+CCI%2C+DLR%2C+WPC%2C+VNO%2C+LAMR%2C+GLPI%2C+LAND%2C+IRM&timePeriod=2&tradingDays=60&months=36Support the show

We begin with a monthly rant about the misguided idea of picking funds that have "great fund managers" and a few other topics.Relevant links:Recent interview of Burton Malkiel:  https://animalspiritspod.libsyn.com/a-random-talk-with-burton-malkielRisk Parity Radio Bond Episodes:https://www.riskparityradio.com/podcast/episode/4965a5d2/episode-14-which-bonds-are-right-for-your-risk-parity-style-portfolio-a-comprehensive-analysis-part-ihttps://www.riskparityradio.com/podcast/episode/4c25df5c/episode-16-which-bonds-are-right-for-your-risk-parity-style-portfolio-a-comprehensive-analysis-part-2Following the rant is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfoliosWe also compare the Accelerated Permanent Portfolio with two Dave Ramsey-Style Portfolios using the tools at Portfolio Visualizer.  Relevant links:White Coat Investor article about a Ramsey-style portfolio:  https://www.whitecoatinvestor.com/dave-ramsey-asset-allocation/Portfolio Visualizer analysis:https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=7.5&relativeDeviation=0.0&showYield=true&reinvestDividends=true&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=PFF&allocation1_1=25&symbol2=TMF&allocation2_1=27.5&symbol3=GLD&allocation3_1=22.5&symbol4=UPRO&allocation4_1=25&symbol5=VIVIX&allocation5_2=25&symbol6=VMGRX&allocation6_2=25&allocation6_3=25&symbol7=VSCIX&allocation7_2=25&symbol8=VGTSX&allocation8_2=25&symbol9=VGIAX&allocation9_3=25&symbol10=VSGIX&allocation10_3=25&symbol11=VWIGX&allocation11_3=25Support the show

In this episode, which is Part One of Two, we begin our analysis of REITS as an investment using David Stein's 10 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?We cover the first five questions in this episode.Helpful links:Investopedia Article on REITs:  https://www.investopedia.com/terms/r/reit.aspDirectory of REITs by sector:  https://www.reit.com/investing/reit-directory?title=nly&field_rtc_listing_status_tid_selective[]=524&field_address_country_selective[]=US&sort_by=titleThe Section 199A Tax Benefits of REITs:  https://www.kitces.com/blog/reit-real-estate-investments-section-199a-qbi-deduction/#:~:text=Because%20under%20IRC%20Section%20199A,Qualified%20Business%20Income%20or%20QBI)Correlation Matrix of Most of the REITs and funds mentioned:  https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=VTI%2C+VNQ%2C+VNQI%2C+REET%2C+BXP%2C+PLD%2C+O%2C+SPG%2C+AVB%2C+WY%2C+VTR%2C+WELL%2C+PSA%2C+AMT%2C+CCI%2C+DLR%2C+WPC%2C+VNO%2C+LAMR%2C+GLPI%2C+LAND%2C+IRM&timePeriod=2&tradingDays=60&months=36Support the show

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfoliosWe also compare the Risk Parity Ultimate Portfolio with a Boglehead's Three-Fund Portfolio using the tools at Portfolio Visualizer.  Here is a link to that analysis:https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=true&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=2.5&relativeDeviation=0.0&showYield=true&reinvestDividends=true&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&allocation1_1=0&allocation1_3=0&symbol2=VUG&allocation2_1=12.5&allocation2_3=0&symbol3=VIOV&allocation3_1=12.5&allocation3_3=0&symbol4=VOO&allocation4_1=12.5&allocation4_3=0&symbol5=EDV&allocation5_1=5&symbol6=TLT&allocation6_1=15&allocation6_3=0&symbol7=GLD&allocation7_1=10&symbol8=VNQ&allocation8_1=10&allocation8_3=0&symbol9=VNQI&allocation9_1=0&allocation9_3=0&symbol10=VIXY&allocation10_1=2.5&symbol11=PFF&allocation11_1=12.5&symbol12=UPRO&allocation12_1=2.5&allocation13_1=0&symbol14=TMF&allocation14_1=5&symbol15=VTI&allocation15_2=40&symbol16=BND&allocation16_2=40&symbol17=VXUS&allocation17_2=20The Risk Parity Ultimate is a conservative portfolio that is designed for medium and long-term needs.  It is comprised of 12 different funds in six different asset classes:  40% stock funds (split into 12.5% VUG, 12.5% VIOV, 6.25% USMV, 6.25% SPLV and 2.5% UPRO), 25% long-term treasury bond funds (split into 15% TLT, 5% EDV and 5% TMF), 12.5% preferred stock funds (PFF), 10% gold (GLDM), 10% REITs (REET) and 2.5% in a stock market volatility tracking fund (VXX). Here is the link to Episode 9, where we discuss investing in preferred stock shares and the PFF fund in particular:https://www.riskparityradio.com/podcast/episode/48e031bb/episode-9-how-to-choose-investments-using-a-process-and-an-application-to-a-preferred-stock-fundSupport the show