Risk Parity Radio

In this episode we analyze the Direxion Auspice Broad Commodity Strategy ETF, ticker symbol COM, 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?

Additional Links:

COM Fact Sheet:  COM-Fact-Sheet.pdf (direxion.com)

COM Summary Prospectus:  Direxion Auspice Broad Commodity Strategy ETF (onlineprospectus.net)

COM Correlation Matrix:  Asset Correlations (portfoliovisualizer.com)

COM Comparison Backtests:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

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In this episode we answer emails from JB, Brian E, Beat, Lauren, PD and Brad about a TSP conundrum, data for back-testing, the Dragon Portfolio, bowing to your sensei, maximizing withdrawals and using risk parity-style portfolios for intermediate goals.  Then we proceed with our weekly portfolio reviews of the sample portfolios you can find at Portfolios Page| Risk Parity Radio

Additional links:

Big Ern's Google Data Sheet:  EarlyRetirementNow SWR Toolbox v2.0 - save your own copy before editing! - Google Sheets

DFA Matrix Book (2016):  DFA-matrix_book_us_2016.pdf (millswealthadvisors.com)

Meb Faber podcast with Chris Cole:  Episode #317: Chris Cole, Artemis Capital Management, “You Want To Diversify Based On How Assets Perform In Different Market Regimes” | Meb Faber Research - Stock Market and Investing Blog

Portfolio Charts Retirement Spending Calculator:  RETIREMENT SPENDING – Portfolio Charts

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In this episode we address emails from Matt, Craig, Drew, Jeff, and Bill about Homestar Runner sound clips, ETF expense ratios, the psychology of decumulation, portfolio visualizer tools, and my limitations.  We also discuss a recent interview of Bill Bengen and the new portfolios page at ChooseFI.

Links:

Investopedia Article re ETF fees:  How Are ETF Fees Deducted? (investopedia.com)

FI Show Interview of Bill Bengen:  How the 4% Rule is Changing | Bill Bengen - The FI Show

ChooseFI M1 Portfolios Page:  M1 Pies: Manage and Optimize Your Portfolio Like a Pro (choosefi.com)

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In this episode, we answer emails from Erin, Eric, Matt, Davis, Brian, UK, Peter, and Gregory.  We discuss half-way-there portfolios and Canadian TV,  the Pinwheel Portfolio (briefly),  when it makes sense to have multiple portfolios, Millennial intermediate investment strategies, statistical formulas and cash drags, FNBGX, process issues with retirement portfolios, leveraged funds, gold, international equities, portfoliocharts and limit orders.  Yeah, Baby, Yeah!

And then we proceed to our weekly reviews of the six sample risk-parity style portfolios you can find at Portfolios | Risk Parity Radio

Additional links:

Erin's Canadian-Focused Asset Correlation Analysis:  Asset Correlations (portfoliovisualizer.com)

The Pinwheel Portfolio:  Pinwheel Portfolio – Portfolio Charts

Episode 94 with NTSX portfolios:  Podcast Episode 94 | Risk Parity Radio

Portfolio Visualizer FAQ/Methodologies:  Frequently Asked Questions (portfoliovisualizer.com)

Retirement Drawdown/Spending Calculator:  RETIREMENT SPENDING – Portfolio Charts

Hot off the Interwebs!  Me on the Superb Diamond Range Podcast:  ‎Superb Diamond Range: Frank Vasquez of Risk Parity Radio (The Financial Series) | #49 | Risk Parity Investing | podcast | superb diamond range on Apple Podcasts

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In this episode we address the Insidious and Insipid Propaganda Campaign of "National Annuity Awareness Month" that is currently plaguing us with coloring books and stickers, among other obscenities.  And then we address emails from Leah (x2), Brian, Tony, Jeffrey and Steven about REITs and money market funds in the Golden Ratio portfolio, leveraged fund portfolios, dynamic asset allocation, the etf TAIL and Strongbad.

Links:

Dynamic Asset Allocation article:  Dynamic Asset Allocation Definition (investopedia.com)

Episodes Regarding the Bias-Variance Tradeoff (or Dilemma) and Risk vs. Uncertainty:

Podcast Episode 49 | Risk Parity Radio

Podcast Episode 66 | Risk Parity Radio

Podcast Episode 64 | Risk Parity Radio

Chocolate Vinegar Cake Episode:  Podcast Episode 16 | Risk Parity Radio

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In this episode we answer emails from Richard, Kyle, Chris and two Brians.  We discuss Richard's portfolio, using NTSX for smaller amounts of leverage, a 90% stock portfolio, PFFD vs. PFF and a TIPs redux.  After that we proceed to our weekly reviews of the six sample risk-parity style portfolios you can find at Portfolios | Risk Parity Radio

Additional Links:

Richard's Portfolio vs. Modified Golden Ratio Analysis:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

NTSX Sample Portfolios:  NTSX Portfolios (portfoliovisualizer.com)

Efficient Frontier Calculator:  Efficient Frontier Forecast (portfoliovisualizer.com)

Article About PFFD:  Preferred Stock ETFs: Taking A Closer Look At PFFD, PFFR, PSK | Seeking Alpha

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In this episode we answer emails from Bastian, Patrice, Jeff and Keith, about investing in Sweden and currency issues, Fundrise, a troublesome annuity product in a 403b and a managed futures reference.  Then we proceed with an analysis of I-bonds from the U.S. Government 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?

Links:

Portfolio Charts Fund Finder:  FUND FINDER – Portfolio Charts

Meb Faber Podcast #225:  Episode #225: Eric Crittenden, Standpoint Asset Management, “I Enjoy Trying To Win A Marathon Rather Than Winning Sprints” | Meb Faber Research - Stock Market and Investing Blog

Treasury Direct I-Bonds In Depth:  Individual - Series I Savings Bonds (treasurydirect.gov)

Treasury Direct I-Bonds FAQ:  Individual - Series I Savings Bonds FAQs (treasurydirect.gov)

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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 ETFs

Portfolio Charts Fund Finder:  FUND FINDER – Portfolio Charts

Portfolio Charts Golden Butterfly Analysis:  Golden Butterfly – Portfolio Charts

Portfolio Charts 60/40 Analysis:  Classic 60-40 – Portfolio Charts

VASIX 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) - YouTube

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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 Radio

Additional links:

Sharpe Ratio:  Sharpe Ratio Definition (investopedia.com)

Portfolio Charts Golden Butterfly Example Of Tight Variance:   Golden Butterfly – Portfolio Charts

Portfolio Visualizer Asset Correlation Calculator (Covariance):  Asset Correlations (portfoliovisualizer.com)

How NOT To Invest:  Podcast 9| Risk Parity Radio

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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 Radio

Rational 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 Portfolio

Methodologies for S&P Style Factors and Funds:  S&P Methodologies Paper

Intro to Fama-French Three-Factor Model:  Fama and French Three Factor Model (investopedia.com)

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