Risk Parity Radio

In this episode we discuss how professionals construct risk-parity style portfolios, what are the basic principles for the do-it-yourself investor, and how to implement them.  The three basic principles are (1) the Holy Grail Principle; (2) the Macro-Allocation Principle; and (3) the Simplicity Principle.Here are the links mentioned in the episode:March draw-downs for professional risk-parity style portfolios: https://www.markovprocesses.com/blog/risk-parity-funds-in-the-coronavirus-market-rout/Ray Dalio explains the Holy Grail principle of risk-parity style investing: https://www.youtube.com/watch?v=Nu4lHaSh7D4Ray Dalio reveals the most basic components of most risk-parity style portfolios:https://www.youtube.com/watch?v=KA7U8xT_2DkPortfolio Visualizer Asset Correlation Calculator:  https://www.portfoliovisualizer.com/asset-correlationsPortfolio Charts Master Portfolio Analyzer:  https://portfoliocharts.com/portfolios/Support the show

This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfoliosWe also discuss the Golden Ratio Portfolio in depth, including how it was constructed and how it compares with the Total Stock Market and 60/40 stock/bond portfolios over the past 50 years.  Are you interested in a 30% better safe withdrawal rate?  Then lend your ear.Here is the link to the article about the Golden Ratio as mentioned in the episode:  https://en.wikipedia.org/wiki/Golden_ratioSupport the show

In this follow-up to Episode 3, we explore the development of risk-parity style investing from the 1980s to the present day.Links:The All Weather Strategy Paper:   Bridgewater Paper 2009.12 AW Info Pack.doc (granicus.com)Risk Parity Portfolios:  Efficient Portfolios Through True Diversification:  https://www.panagora.com/assets/PanAgora-Risk-Parity-Portfolios-Efficient-Portfolios-Through-True-Diversification.pdfRisk Parity:  Silver Bullet Or A Bridge Too Far: chapter-4-from-managing-multiasset-strategies-2018.pdf (callan.com)Support the show

This is our weekly portfolio review of the portfolios you can find at https://www.riskparityradio.com/portfoliosWe also discuss the Golden Butterfly Portfolio in depth.  Links to more information about the Golden Butterfly and the theory behind it:https://portfoliocharts.com/2015/09/22/catching-a-golden-butterfly/https://portfoliocharts.com/2016/04/18/the-theory-behind-the-golden-butterfly/Support the show

In this episode we explore the ancient origins of asset allocation and diversification, and how these ideas were expanded upon and implemented from the 1950s into the 1980s.Links:  Bava Metzia 42a:  https://steinsaltz.org/daf/bavametzia42/70-year History of Investment Consulting:  https://seekingalpha.com/article/4357226-70-year-history-of-investment-consulting-1950minus-2020Why the Best-Laid Investment Plans Usually Go Wrong: And How You Can Find Safety and Profit in an Uncertain World:  https://www.amazon.com/Best-Laid-Investment-Plans-Usually-Wrong/dp/0671672924Support the show

In this episode we review the initial performance of our six sample risk-parity style portfolios, which are:  (1) the All Seasons portfolio; (2) the Golden Butterfly portfolio; (3) the Golden Ratio portfolio; (4) the Risk Parity Ultimate portfolio; (5) the Accelerated Permanent Portfolio; and (6) the Aggressive Fifty-Fifty.  After that, we discuss the All Seasons portfolio in more detail.  Additional information and the referenced data may be found at https://www.riskparityradio.com/portfoliosSupport the show

This is a brand new podcast in the personal finance space for the do-it-yourself investor.  It is about asset allocations using risk-parity principles to construct robust portfolios.In this episode we answer five basic questions:1.  What is Risk Parity Radio?2.  Who is this podcast for?3.  Gee willikers, what does "Risk Parity" mean anyway, Uncle Frank?4.  How will will make this real and actionable for you?5.  How can you get involved?Stay tuned for more content in future episodes!Support the show