Having selected a number of assets to include in a portfolio, a key decision any investor has to make is “What percentage of my available funds should I allocate to each asset held in my portfolio?” In the Feynman Study I covered a number of common options: 1. Use of a Strategic Asset Allocation Plan (SAA) – […]
Risk Parity: A Brief Explanation of How Risky a 60/40 Portfolio Really Is
This is a follow-up to the HedgeHunter Risk Parity (RP) post. This blog post will give readers an overview of how RP is calculated. This not for the mathematically squeamish, but the concept is not difficult if one can get past one step in the logic. I agree with HedgeHunter as to flaws in this […]
Asset Allocation – Risk Parity Revisited: Part 2
In my previous Risk Parity Part 1 post I presented possible ways that funds might be allocated to momentum-ranked assets without any filtering to ensure diversification. One possible weakness of this simple form of momentum ranking is that highly correlated assets may rank similarly within the listings – this may be either a good thing […]
Constructing a “Core” Investment Portfolio : Part 3 – Risk Parity and Volatility Targeting
In the first two parts of this series on portfolio construction I have focused on simplicity in terms of the number of assets that might be included in the portfolio and the level of management effort required to monitor and maintain the portfolio so as to generate acceptable returns. I have addressed risk at the […]
Constructing a “Core” Investment Portfolio: Part 4 – Fixed Allocation Rebalancing or Risk Parity and Volatility Targeting?
In parts 2 and 3 of this series I described how we might manage our core portfolio by either rebalancing to a fixed asset allocation or by adjusting allocations based on changing volatilities. The two options are not complimentary, so we need to choose one or the other. Which method we use should probably depend […]
Darwin Portfolio Review: 24 October 2025
US Equities hit new all-time highs again this week with the SPX (S&P 500 Index) closing ~2% higher than last week’s close and butting it’s head against the 6800 level (previous highs ~2 weeks ago):
You must be logged in to post a comment.