Risk Parity Radio

In this episode we begin with a rant about a Think Advisor article about what financial services is all about -- the PARTY CIRCUIT.  And the we address emails from the Nameless One, Kyu, Brian and Eric.  We discuss the original Permanent Portfolio and modifications to the Golden Butterfly portfolio, the tax feature of the Portfolio Visualizer Monte Carlo simulator, efficient allocations in taxable, tax-deferred and tax protected accounts, considerations surrounding expected returns of asset classes and the problems with cash drags in portfolio construction, and the BITW fund and alternatives.

Links:

Think Advisor article:  How Advisors Do the Party Circuit | ThinkAdvisor

"Nimble Golden Butterfly" modifications:  Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)

Risk Parity Radio Tutorial Video re Portfolio Visualizer Monte Carlo Simulator:  Tutorial #4: Portfolio Visualizer Monte Carlo Simulator -- Introduction - YouTube

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In this episode we address emails from Julie T., Julie H. Jeff and Colin.  We discuss the automated trading platform Composer, places to learn about crypto and NFTs, the growth factor in equities, the fund PRWCX, a modified Golden Butterfly portfolio, and using ABLE accounts for the "family match".

And THEN we scar you with our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional links:

The Composer website:  Composer – Automated trading platform.

Modern Finance podcast:  Modern Finance – MoFi

Proof podcast re NFTs:  PROOF

Bitcoin Fundamentals podcast:  Bitcoin Fundamentals: A Podcast on Bitcoin - The Investor's Podcast Network (theinvestorspodcast.com)

Portfolio Visualizer Growth Fund/Total Stock Fund Correlations:  Asset Correlations (portfoliovisualizer.com)

PRWCX vs. Golden Ratio:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Colin's Modified Golden Butterfly:   Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)

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In this episode we give a shout out to our listeners in Ukraine and answer emails from Darren, Jeffrey and Ron.  We discuss World Central Kitchen, comparison tools for non-U.S. funds, the Portfolio Visualizer Financial Goals tool, shorter-term use of risk parity portfolios, the disgusting problem of unwinding poorly performing annuity products and some customized risk-parity style portfolios.

Links:

World Central Kitchen charity for Ukraine:  World Central Kitchen (wck.org)

Marketwatch example of non-U.S. fund:  VWRL | Vanguard FTSE All-World ETF Advanced Charts | MarketWatch

Portfolio Visualizer Financial Goals analysis tool:  Financial Goals (portfoliovisualizer.com)

Ron's Custom Portfolios:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

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In this episode we address emails and messages from Nathan, Michael, MyContactInfo and Visitor 5225.  We discuss correlations of international funds vs. small cap value funds, new international small cap value funds, the plusses and minuses of the Accelerated Permanent Portfolio, Aswath Damdaran and the follies of dividend investing, and my email address.  Whoa!

And THEN we look at monthly distributions and returns of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional links:

International and small cap value correlation analysis:  Asset Correlations (portfoliovisualizer.com)

Bogleheads Podcast Featuring Eduardo Repetto:  Episode 43: Bogleheads on Investing – guest Eduardo Repetto, host Rick Ferri – Rick Ferri, CFA

Video Lecture of Aswath Damodaran re Dividends:    Damodaran on Dividends - YouTube

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In this episode we address emails from Chris, Kevin from Canada, Davis, Amy and Mark.  We discuss RPAR's performance issues, A Canadian Anti-Beta ETF and academic analysis of those strategies, using utilities in the Golden Ratio portfolio, frontier markets and international factor funds, decumulation mechanisms and the Golden Ratio sample portfolio, and DFA-like funds.

And THEN we put you to sleep with our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional links:

RPAR Fact Sheet:  RPAR Risk Parity ETF (rparetf.com)

Anti-Beta Strategies Paper:  Microsoft Word - BettingAgainstBeta - 20101129.doc (nber.org)

FM/EEM Correlation Analysis:  Asset Correlations (portfoliovisualizer.com)

DFA ETFs table:  Dimensional ETFs

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In this episode we address emails from Brandon, Scot, Junior, Tony and Chris.   We address using leverage in accumulation portfolios, thanks to Scot, how QYLD resembles a 1987 Chrysler LeBaron, the UPRO stock split (again), and sources of gold data.

Links:

Ben Felix Video About Leverage:  Investing With Leverage (Borrowing to Invest, Leveraged ETFs) - YouTube

AQR Paper About Leverage:  Alternative Thinking Why Do Most Investors Choose Concentration Over Leverage.pdf

Portfolio Visualizer Destruction of QYLD:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

The 1987 Chrysler LeBaron Convertible:  1987 Chrysler LeBaron Indy Pace Car Convertible - YouTube

Chris's Bogleheads Link:  Simba's backtesting spreadsheet - Bogleheads

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In this episode we attend to emails from Justin, Mycontactinfo, Ron, Bastian and Dustin.   We discuss the UPRO stock split, Dan Pink's Drive and flow states, Laurence Kotlikoff books and the nature of reality and uncertainty, having a look at PICK and EWD, and more variations on the Golden Ratio portfolio.

And THEN we put you to sleep with our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional links:

Mark's Cool Portfolio Shortcutter Tool:  https://docs.google.com/spreadsheets/d/1lG18XrJA8-oODSNC0nV2T5nyVPAByU7p901oYn_ECDw/edit#gid=1553040997

RSA Animate "Drive" video:   RSA ANIMATE: Drive: The surprising truth about what motivates us - YouTube

Kotlikoff's latest book:  Money Magic: An Economist’s Secrets to More Money, Less Risk, and a Better Life: Kotlikoff, Laurence: 9780316541954: Amazon.com: Books

The Rise of Superman book:  The Rise of Superman: Decoding the Science of Ultimate Human Performance by Steven Kotler | Goodreads

The Art of Impossible book:  The Art of Impossible: A Peak Performance Primer by Steven Kotler | Goodreads

Correlation Analysis of PICK and EWD:  Asset Correlations (portfoliovisualizer.com)

FXIFX vs. Golden Ratio Portfolio:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

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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.pdf

UPRO 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 Portfolio

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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 Run

Money 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 Investor

Dividend Collapses Article:  The Biggest Dividend Stock Collapses of All Time - Dividend.com

Link To Podcast With Professor Lo:  Andrew Lo: Finding the Perfect Portfolio--a 'Never-Ending Journey' | Morningstar
 

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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 | Vanguard

NAREIT REIT Sectors:  REIT Sectors | Nareit

REIT correlation matrix:  Asset Correlations (portfoliovisualizer.com)

Alexi's Article on Assets that Benefit from Inflation:  What Works When Inflation Hits? | Man Institute | Man Group

Perfect Portfolio book link:  In Pursuit of the Perfect Portfolio | Princeton University Press

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