Risk Parity Radio

In this episode we answer emails from Jared, Jon and Jimmy.  We got the three Js!  We discuss Jared's work to create AI Uncle Frank, his accumulation variation of the O.P.T.R.A. sample portfolio, carry strategies, whether to reinvest distributions and using multiple managed futures funds.

Links:

Father McKenna Center Donation Page (don't forget to include "The Financial Quarterback Match" in the comment/dedication box):  Donate - Father McKenna Center

Jared's Accumulation O.P.T.R.A. Portfolio:  testfol.io

Resolve Asset Management Video on Carry Strategies:  Navigating Market Volatility Mastering Managed Futures and Carry Strategies (youtube.com)

CCRV Fund:  CCRV – iShares® Commodity Curve Carry Strat ETF – ETF Stock Quote | Morningstar

ICITF Fund:  ICITF – iPath® Optimized Currency Carry ETN – ETF Stock Quote | Morningstar

Video on QIS Fund:  Simplify QIS Fund Deep Dive (youtube.com)

Amusing AI-Bot Generated Summary:

Ever wondered if leveraging your investment portfolio could lead to better returns? Discover Jared's transformative journey from a mechanical engineer to a machine learning enthusiast and the creator of a Risk Parity Radio chatbot! Jared shares his intricate process of optimizing a traditional 50-50 stock allocation into a more diversified and leveraged strategy. We’ll dissect the potential benefits and pitfalls of his approach, with a spotlight on managing leverage, mitigating drawdowns, and enhancing overall risk management.

We also extend our heartfelt thanks for your generous contributions to the Father McKenna Center. Dive into the exciting realm of AI as we discuss how it's revolutionizing podcast transcriptions and even mimicking the host's voice. Plus, we explore translating podcast episodes into a book with the help of AI. Don't miss our deep dive into listener questions about leveraging portfolios for accumulation, the intricacies of handling dividends and distributions, and an examination of managed futures funds like DBMF and KMLM. Whether you’re in the accumulation or decumulation phase, we’ve got actionable strategies to help you stay on track for long-term success.

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In this episode we answer emails from Justin, Joe and Jenzo.  We discuss the legacy of Risk Parity Chronicles, basic accumulation principles, and what we can learn from a debate on gold between Ben Felix and Tyler of Portfolio Charts.  And
 talk about our charitable promotion for the Father McKenna Center.

And then we go through our weekly portfolio reviews of all eight of the sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional links:

Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations:  Donate - Father McKenna Center

Financial Quarterback Podcast With Yours Truly:  Breaking Down the Holy Grail of Diversified Portfolios w/ Frank Vasquez Jr. (Risk Parity Radio) (youtube.com)

Justin's Station Wagon Portfolio:  The Station Wagon Portfolio - Google Docs

Jenzo's Link to the Great Gold Debate:  Ben & Tyler showdown - Google Docs

AI-generated summary (use at your own risk):

Can diversification safeguard your portfolio against turbulent market conditions? Join us at Risk Parity Radio, the podcast with a dive bar vibe where humor meets investment wisdom. This episode begins with a performance review of our eight sample portfolios, demonstrating how diversification has been a protective shield amid market volatility. Plus, we're excited to feature our charitable promotion for the Father McKenna Center, urging listeners to donate and take advantage of our matching offer.

We welcome back Justin, the insightful mind behind the now-dormant "Risk Parody Chronicles," for a thought-provoking discussion on the value of freely sharing financial knowledge. We revisit the Station Wagon Portfolio and emphasize the significance of adhering to a well-devised investment strategy. We also respond to Joe's questions about the accumulation phase, advocating for a combination of low-cost index funds, such as S&P 500 and small-cap value funds, and stressing the importance of consistency over the allure of recent top performers.

Curious about the timeless debate on gold's role in modern portfolios? We dissect a lively debate between Tyler and Ben Felix, scrutinizing the historical and contemporary merits of holding gold. Alongside, we provide a detailed market analysis, highlighting the recent rise in gold and long-term treasury bonds, and review how different portfolios like the All Seasons and Golden Butterfly have weathered the storm. This episode is a reminder to employ critical thinking and adopt a comprehensive approach when evaluating investment strategies and market trends.

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In this episode we answer emails from Ed, Cy, Visitor 5002, and Lucas.  We discuss preferred shares funds, rebalancing and ranting, how the podcast sausage is made and Risk Parity Chronicles.  And the charitable matching opportunity with the Financial Quarterback for the benefit of the Father McKenna Center.

Links: 

Father McKenna Center Donation Page (don't forget to include "The Financial Quarterback Match" in the comment/dedication box):  Donate - Father McKenna Center

Financial Quarterback Podcast With Yours Truly:  Breaking Down the Holy Grail of Diversified Portfolios w/ Frank Vasquez Jr. (Risk Parity Radio) (youtube.com)

PFFV On Morningstar:  PFFV – Global X Variable Rate Preferred ETF – ETF Stock Quote | Morningstar

Risk Parity Chronicles On YouTube:  Risk Parity Chronicles - YouTube

Golden Butterfly Portfolio In Depth:  Golden Butterfly Portfolio – Portfolio Charts

Unedited Artificial Intelligence Description:

Ever wondered how to double the impact of your charitable donations while navigating the world of preferred shares funds? On this episode of Risk Parity Radio, we kick things off with something special—a segment dedicated to answering listener emails and revealing our latest charitable promotion for the Father McKenna Center. Learn about an incredible matching donation opportunity connected to my appearance on the Financial Quarterback podcast, and hear about a clever donation strategy using donor-advised funds suggested by our listener, David.

Thinking about adding preferred shares to your portfolio but not sure where to start? Listener Ed's email prompts a deep dive into the mechanics and benefits of preferred shares funds. Discover why these funds are appealing, particularly for those in high tax brackets, as we compare ETFs such as PFF, PGX, PFXF, and FPE. I'll share my current top picks, PFFV and PFFD, which boast lower expense ratios and higher dividend payouts, and discuss the tax advantages of qualified dividends. Whether you're looking to enhance your yield or add stability to your investments, this segment is packed with actionable insights.

Finally, we turn our focus to the critical practice of portfolio rebalancing, illustrating how this strategy can help you buy low and sell high. We'll share recent examples to highlight its effectiveness, all while adding a bit of entertainment with a playful nod to "Willy Wonka & the Chocolate Factory." Don't forget to engage with us by subscribing, giving ratings, and leaving reviews on your favorite podcast platforms. Tune in for a perfect blend of insightful financial advice, engaging listener interactions, and tips on making a difference through thoughtful charitable contributions.

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In this episode we answer questions from Nonamed, Ronald, and Jose.  We discuss how sensational financial media works and why you should ignore it, being thankful for our listeners and how correlations work and relate to macro-economic environments in the context of the Holy Grail principle.  And we discuss our charitable match outreach for the Father McKenna Center.

And then we go through our weekly portfolio reviews of all eight of the sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional links:

Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations:  Donate - Father McKenna Center

Risk Parity Radio RSS Feed Page For Word Searching The Podcast:  Risk Parity Radio RSS Feed (buzzsprout.com)

UNC Paper (not Duke!) Re Treasury Bond Correlations In Recessions (see Page 53 for Chart):  ssrn_id4768684_code533828.pdf (elsevier-ssrn-document-store-prod.s3.amazonaws.com)

Ray Dalio Explains The Holy Grail Principle: Ray Dalio breaks down his "Holy Grail" (youtube.com)

Bridgewater Paper With Basic Quadrant Model Example (see Page 8):   Bridgewater Paper 2009.12 AW Info Pack.doc (granicus.com)

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In this episode we answer emails from Steve, Grant, and Alexi (a/k/a "the Dude").  We discuss investing in managed futures and property and casualty insurance companies, rebalancing mechanisms and fitting those into a portfolio, Grant's various gambling problems with leveraged funds and assorted Metaverse doom-scrolling, and the recent annoying changes with Portfolio Visualizer.  And our charitable push for our charity, the Father McKenna Center --get the match!

Links:

Father McKenna Center Donation Page (don't forget to include "The Financial Quarterback Match" in the comment/dedication box):  Donate - Father McKenna Center

SocGen Managed Futures CTA And Trend Indices:  Prime Services (Newedge) Indices (societegenerale.com)

Kitces Rebalancing Methods Article:  Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com)

New Testfol Backtester With OPTRA Example:  testfol.io

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In this final episode of Season Four we discuss the concepts of rebalancing and reallocating in all their glory and go through the planned annual rebalancings for four of the sample portfolios in excruciating detail.  We also discuss all of the assets and allocations in the Risk Parity Ultimate portfolio and which ones we actually own in real life.

And we go through our weekly portfolio reviews of all eight of the sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional link:

Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations:  Donate - Father McKenna Center

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In this episode we answer emails from Judy, Steve and MyContactInfo.   We discuss a recent offer by The Financial Quarterback podcast to match donations the the Father McKenna Center (yay!), why you should buy gold ETFs and NOT physical gold, Cartman and Kyle, and the varying value of education depending on the individual.

Links:

Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations:  Donate - Father McKenna Center

ETF Database -- Gold ETFs:  Gold ETF List (etfdb.com)

Listener John's Gold ETF link:  9 low cost physical Gold ETFs for portfolio parity - SmartMoneyToolbox

GLD FAQs:  FAQs > USA > SPDR Gold Shares (GLD). Bringing the gold market to investors

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In this episode we answer emails from Brian, Wendy, and Midas.  We discuss the bond fund GOVT and how it fits or doesn't fit in portfolio construction, some basics about IRA conversions and retirement resources (podcasts and groups), and follow up on Episode 340 with a discussion on our pedagogical approach, the pluses and minuses of the Socratic Method and tilting at logical fallacies.

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:

Morningstar Analysis of GOVT:  GOVT – Portfolio – iShares US Treasury Bond ETF | Morningstar

Big Picture Retirement Podcast About IRA Conversions:  When Roth IRA Conversions Go Too Far (bigpictureretirement.com)

Andy Panko YouTube Topical Playists:  Retirement Planning Education - YouTube

Link to Retirement Planning Education Facebook Group (and other materials):  Retirement Planning Education Facebook group

Retirement Answer Man Podcast:  A Top Retirement Podcast, with over 8 Million Downloads — The Retirement Answer Man® (rogerwhitney.com)

Retirement & IRA Show:  Podcasts Archives - The Retirement and IRA Show

Trogdor (Just Because):  Trogdor Song (youtube.com)

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In this episode we answer emails from Jeffrey, Justin and Matt.  We discuss the concept of "skew" generally and in the context of investing in managed futures, a "station wagon" portfolio similar in macro-allocations to the new OPTRA sample portfolio, and the age old question of whether to pay down debt or invest.  (Uncle Frank says "Do Both.")

Links:

Basic Article About Skew:  Right Skewed vs. Left Skewed Distribution (investopedia.com)

MFUT Fund Fact Page:  Cambria Chesapeake Pure Trend ETF (MFUT) | Cambria Funds

Justin's Station Wagon Portfolio:  The Station Wagon Portfolio - Google Docs

Risk Parity Chronicles Video on Asset Swaps:  How to Do an Asset Swap (youtube.com)

Arch Portfolio Backtester:  Portfolio Backtest — Arch Indices Portfolio Analyzer

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In this episode we introduce a new sample experimental portfolio, the O.P.T.R.A., which is now also featured on the Portfolios Page at the website.  It is a mixture of the latest and greatest ideas in portfolio construction.

Links:

O.P.T.R.A. backtest:  testfol.io

O.P.T.R.A. correlation analysis:  testfol.io

Morningstar UPRO:  UPRO – Portfolio – ProShares UltraPro S&P500 | Morningstar

Morningstar AVGV:  AVGV – Portfolio – Avantis All Equity Markets Value ETF | Morningstar

Morningstar GOVZ:  GOVZ – Portfolio – iShares 25+ Year Treasury STRIPS Bd ETF | Morningstar

Morningstar GLDM:  GLDM – Portfolio – SPDR® Gold MiniShares | Morningstar

Morningstar DBMF:  DBMF – iMGP DBi Managed Futures Strategy ETF – ETF Stock Quote | Morningstar

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