Risk Parity Radio

This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios

Sorry it's just a short one!

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Today we tackle two questions.  Chris wants to drawdown an inherited IRA.  Tommy wants to know about the use of correlations in Risk Parity analyses.

Links:

RPAR Managers Interview:  https://youtu.be/vCiPDIB6TWg

Bridgewater Strategy Paper (see page 8 for quadrant map):  http://sdcera.granicus.com/MetaViewer.php?view_id=4&clip_id=75&meta_id=9141

Explanation of the Bias-Variance Tradeoff:  https://elitedatascience.com/bias-variance-tradeoff

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This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios

Additional Links:

Portfolio Visualizer Analysis of the Original and Accelerated Permanent Portfolios:  https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2021&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=5&absoluteDeviation=7.5&relativeDeviation=0.0&showYield=false&reinvestDividends=true&benchmark=VFINX&benchmarkSymbol=VTI&portfolioNames=true&portfolioName1=Accelerated+Permanent+Portfolio&portfolioName2=Permanent+Portfolio&portfolioName3=Portfolio+3&symbol1=UPRO&allocation1_1=25&symbol2=TMF&allocation2_1=27.5&symbol3=PFF&allocation3_1=25&symbol4=GLD&allocation4_1=22.5&allocation4_2=25&symbol5=IJS&symbol6=IEF&symbol7=SHY&allocation7_2=25&symbol8=VTI&allocation8_2=25&symbol9=TLT&allocation9_2=25

Optimized Portfolios Site:   https://www.optimizedportfolio.com/category/leverage/

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This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios

We also compare the All Seasons Portfolio with a Global Market Portfolio.

Links:

Global Market Portfolio Description:  https://portfoliocharts.com/2021/01/05/own-the-financial-field-with-the-global-market-portfolio/

Portfolio Visualizer Comparison Analysis:  https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=2&startYear=1972&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&portfolioNames=true&portfolioName1=Global+Market+Portfolio&portfolioName2=All+Seasons+Portfolio&portfolioName3=Portfolio+3&asset1=TotalStockMarket&allocation1_1=23&allocation1_2=30&asset2=IntlDeveloped&allocation2_1=22&asset3=EmergingMarket&allocation3_1=5&asset4=GlobalBondHedged&allocation4_1=44&asset5=REIT&allocation5_1=4&asset6=Gold&allocation6_1=2&allocation6_2=15&asset7=LongTreasury&allocation7_2=40&asset8=IntermediateTreasury&allocation8_2=15&asset9=Commodities

Bond Correlation Matrix:  https://tinyurl.com/y4x3jynu

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In this episode we answer a question from listener Brett about the Aptus Defined Risk ETF and use David Stein's Ten Questions to Master Investing to analyze it, 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:

Referenced Insurance Policy Illustration:   https://photos.app.goo.gl/Bjf6u7Vyy8HZz4VF6

DRSK Fact Sheet:  https://aptusetfs.com/wp-content/uploads/2021/01/DRSK-Fact-Sheet-Jan-2021.pdf

DRSK Strategy Paper:  https://aptusetfs.com/wp-content/uploads/2020/09/Part-1-Sporadic-Asymmetry.pdf

DRSK Semi-Annual Report:  https://aptusetfs.com/wp-content/uploads/2020/12/Aptus-10.31.20-Semi-Annual-Report-Web-Ready-Version-Public.pdf

DRSK Correlation Matrix:  https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=DRSK%2C+VTI%2C+VUG%2C+VIOV%2C+TLT%2C+GLD%2C+VNQ%2C+PFF&timePeriod=2&tradingDays=60&months=36

RPR Episode With Big ERN's Option Writing Strategy and Links:  RPR Episode 40

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This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios

We also discuss the distributions for the month of January and the last six months of distributions.

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In today's listener-inspired show, we analyze our sample portfolios and listener Mark B's Golden Six portfolio in the ten-year hedge fund challenge that Warren Buffett issued in 2008.

Links:

The Investors Podcast #328 with RPAR Managers:  https://www.theinvestorspodcast.com/episodes/tip328-balanced-portfolio-allocation-with-damien-bisserier-alex-shahidi/

Optimized Portfolios Lazy Portfolio Analyses:  https://www.optimizedportfolio.com/lazy-portfolios/

Analysis of Golden Butterfly, Golden Ratio and Golden Six:  https://tinyurl.com/y9a33xq5

Analysis of Risk Parity Ultimate and All Seasons:  https://tinyurl.com/yaj8qfes

Analysis of Accelerated Permanent Portfolio and Aggressive Fifty-Fifty:  https://tinyurl.com/y9q68qpk

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This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios

Additional Links:

Introducing the Aggressive Fifty-Fifty Portfolio:  RPR Episode 10

Episode 24 regarding the Aggressive Fifty-Fifty:  RPR Episode 24

Rebalancing the Aggressive Fifty-Fifty:  RPR Episode 32

Portfolio Visualizer Analysis:  Backtest Fifty-Fifty Portfolios

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In this portfolio analysis bonanza episode we tweak the Paul Merriman Two Funds for Life and Merriman Ultimate Portfolios to improve them Risk-Parity style and have a look at a portfolio submitted by Brad, one of our listeners.

Links:

Earn & Invest Podcast featuring Paul Merriman and Rich Buck:  https://paulmerriman.com/tag/rich-buck/

Merriman Two-Funds For Life Portfolio Explanation:  https://paulmerriman.com/2-funds-for-life/

Merriman Ultimate TDF Portfolio:  https://paulmerriman.com/the-ultimate-target-date-fund-portfolio/

Merriman Google Sheet re Portfolio Glidepaths:  https://docs.google.com/spreadsheets/d/1oNtsaWWXexQj30_sxEGBI08kCnrdzVdWg3dITu3ZSc8/edit#gid=0

Portfolio Visualizer Analysis of Two Funds For Life at 65 vs. Risk Parity Alternative:  https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1972&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&portfolioNames=true&portfolioName1=Two+Funds+For+Life+at+65&portfolioName2=Risk+Parity+Alternative&portfolioName3=Portfolio+3&asset1=TotalStockMarket&allocation1_1=30&allocation1_2=30&asset2=IntlStockMarket&allocation2_1=20&allocation2_2=20&asset3=TotalBond&allocation3_1=30&asset4=GlobalBond&allocation4_1=10&asset5=TIPS&allocation5_1=10&asset6=LongTreasury&allocation6_2=30&asset7=Gold&allocation7_2=15&asset8=TreasuryBills&allocation8_2=5

Portfolio Visualizer Analysis of Ultimate Glidepath vs. Risk Parity Alternative:  https://tinyurl.com/ycpfeazq

Portfolio Visualizer Analysis of Brad's Portfolio vs. Golden Butterfly:  https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&showYield=false&reinvestDividends=true&portfolioNames=true&portfolioName1=Golden+Butterfly&portfolioName2=Brad%27s+Alternative&portfolioName3=Portfolio+3&symbol1=VTI&allocation1_1=20&symbol2=IJS&allocation2_1=20&symbol3=GLD&allocation3_1=20&allocation3_2=20&symbol4=TLT&allocation4_1=20&allocation4_2=20&symbol5=SHY&allocation5_1=20&symbol6=XLY&allocation6_2=20&symbol7=VGT&allocation7_2=20&symbol8=IEF&allocation8_2=20

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This is our weekly portfolio review of the portfolios you can find at: https://www.riskparityradio.com/portfolios

Additional Links:

Episode 3 -- History of Portfolio Allocations Part 1:  Episode 3

Episode 5 -- History of Portfolio Allocations Part 2:  Episode 5

Episode 8 -- Introducing the Accelerated Permanent Portfolio:  Episode 8

Portfolio Visualizer Analysis:   https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=6.0&relativeDeviation=0.0&showYield=false&reinvestDividends=true&benchmark=-1&benchmarkSymbol=VTI&portfolioNames=true&portfolioName1=Original+Permanent+Portfolio&portfolioName2=Accelerated+Permanent+Portfolio&portfolioName3=Portfolio+3&symbol1=UPRO&allocation1_2=25&symbol2=TMF&allocation2_2=27.5&symbol3=PFF&allocation3_2=25&symbol4=GLD&allocation4_1=25&allocation4_2=22.5&symbol5=VTI&allocation5_1=25&symbol6=TLT&allocation6_1=25&symbol7=CASHX&allocation7_1=25&symbol8=SHY

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