Risk Parity Radio

In this episode I make an announcement about my willingness to do financial coaching and address emails from Randy, Kristen, Freya, Kyu, TK, Davis, Robyn and Iveta.  We discuss UPRO, my quirky sense of humor, commodities funds, safe and perpetual withdrawal rates, gliding into retirement with a Fortress of Solitude, multi-factor ETFs, All Seasons portfolio as an emergency fund and compared with VASIX, and my limitations (on guests).Links:UPRO Holdings:  ProShares UltraPro S&P500 | UPRO | Daily Holdings | ProShares ETFsPortfolio Charts Fund Finder:  FUND FINDER – Portfolio ChartsPortfolio Charts Golden Butterfly Analysis:  Golden Butterfly – Portfolio ChartsPortfolio Charts 60/40 Analysis:  Classic 60-40 – Portfolio ChartsVASIX vs. All Seasons Analysis:  Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)John Goodman -- Gambler -- "Fortress of Solitude" Speech:  The Fortress of Solitude Position  (John Goodman in The Gambler) - YouTubeSupport the show

In this episode we answer questions from Rune, Patrice, Franklin and Jeff about coasting in to retirement, the key differences between 100% equity and risk-parity style portfolios, fun with statistical metrics, adjusting a high-income high-equity portfolio situation in transition to retirement, leveraged funds and converting company stock to index funds.  And after all that, we do our weekly and monthly reviews of the six sample risk-parity style portfolios you can find at Portfolios | Risk Parity RadioAdditional links:Sharpe Ratio:  Sharpe Ratio Definition (investopedia.com)Portfolio Charts Golden Butterfly Example Of Tight Variance:   Golden Butterfly – Portfolio ChartsPortfolio Visualizer Asset Correlation Calculator (Covariance):  Asset Correlations (portfoliovisualizer.com)How NOT To Invest:  Podcast 9| Risk Parity RadioSupport the show

In this episode we answer emails from Melissa, Nick, Don, Matt H (x2), Andrew (x2) and Keith.  We dive into short-term correlations, agreements with Big Ern on ultra-conservative portfolios, Fractal vs Gaussian mathematics (oh, boy!), taunting Wealthfront a second time, and I-bonds preview,  leveraged etf portfolios,  VBR vs. VIOV, M1 pies, what's going on with Gamestop in VIOV and the Fama-French Three-Factor Model.  Are you ready for this?Links:Sample Portfolios Page:  Portfolios | Risk Parity RadioRational Reminder Podcast #151:  The Rational Reminder Podcast: Professor Brad Cornell: A Skeptic’s Look at the Cross Section of Expected Returns (EP.151) (libsyn.com)Optimized Portfolios Site:  Leverage | Optimized PortfolioMethodologies for S&P Style Factors and Funds:  S&P Methodologies PaperIntro to Fama-French Three-Factor Model:  Fama and French Three Factor Model (investopedia.com)Support the show

In this episode we analyze QYLD, the Global X Nasdaq 100 Covered Call ETF, 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?Additional links:QYLD Fact Sheet:    QYLD-factsheet.pdf (globalxetfs.com)QYLD Summary Prospectus:   Global X ETFsQYLD Correlation Analysis:  QYLD Asset Correlations (portfoliovisualizer.com)   QYLD Comparison Backtest in Golden Butterfly:  QYLD Backtest (portfoliovisualizer.com)Support the show

In this episode we answer questions from Jamie, Zach, Keith, Ian, Aldo and Brad.  We discuss asset allocations in Roths vs. Traditional, the Risk Parity Radio logo, the virtues of long term treasury bonds, building your stock allocation, doing risk parity from Switzerland and short-term (daily) correlations.  Then we move to our weekly portfolio reviews of the sample portfolios you can find at The Risk Parity Radio Portfolios PageLinks:Portfolio Charts New Fund Finder:  FUND FINDER – Portfolio ChartsOptimized Portfolio M1 Selections:   "m1" | Optimized PortfolioSupport the show

In this episode we answer questions from Falco, Tim, Jeff, Adam, Phil, "Steve" and Nick about building an intermediate-life risk parity portfolio, a Ben Felix allocation video, building up or selling into a risk parity portfolio, a 42.5/42.5/15 portfolio, figuring it out for a UK national in the Middle East, setting it up after moving from Africa, and a bond basics review.  Whew!Link to Adam's 42.5/42.5/15 backtest analysis:  Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)Support the show

In this episode we answer questions from Russell, Carter, the Mysterious Visitor 4541, Own and Travis about portfolios in the accumulation phase, PFF, REET vs. VNQ/VNQI, going into drawdown with  a large taxable account, and inflation and TLT.  Then we move to our weekly portfolio reviews of the sample portfolios you can find at The Risk Parity Radio Portfolios PageLink to referenced Seeking Alpha Article on REITs:  REET Vs. VNQI (ETF): The Better Way To Play International Real Estate | Seeking AlphaSupport the show

In this episode we address emails from Jon, Laura, Kevin and Brian about the problems with Wealthfront's "risk parity" fund, moving to Costa Rica on a risk parity portfolio, inflation-friendly asset classes and TIPS.Links:Article Re Performance of Risk Parity funds in March 202:  Quant Funds in COVID Market Rout | Markov Processes InternationalWealthfront's description of its risk parity fund:  What is Risk Parity invested in? – Wealthfront SupportWealthfront Annual Report:  risk_parity_annual_report.pdf (wealthfront.com)Morningstar 2021 Diversification Landscape Report:  Diversification_Landscape_033021v2.pdf (morningstar.com)Support the show

In this episode we, ahem, "discuss" the problem of Mindless Diversification.  Oh, yeah!  Then we tackle some emails from Craig, Falco, Wes, Justin, Matt, Brian and KC about the Aggressive Fifty-Fifty Sample Portfolio, distribution and re-balancing rules, the Vanguard Extended Duration Bond Fund, trust issues, and why we don't have guests.The Article In Question:  Mindless Diversification ArticleWhy Some Old Rules Of Thumb Are Really Bad:  The "100 Minus Age" Rule Puts Retirees at Risk (thebalance.com)   Kitces Article re Rebalancing:  Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com)Support the show

In this Episode we answer emails from Aaron, Mark, Rob, Joel, Jake and the Mysterious Visitor 9380.  We talk taxes on gold, what's in Uncle Frank's portfolios, a Seeking Alpha article about constructing Risk Parity-style portfolios, BND vs. GLDM, and portfolio management.  And Trogdor!Then we move to our weekly portfolio reviews of the sample portfolios you can find at The Risk Parity Radio Portfolios PageAdditional Links:Taxation of Gold Article:  Tax-efficient investing in gold (journalofaccountancy.com)Seeking Alpha Article:  Building A Risk-Parity Portfolio: An Example | Seeking AlphaSupport the show