How does one control portfolio risk, assuming this is not a forgotten principle? Return and risk are co-equal branches of portfolio management. Keep in mind it requires a recovery of 100% if there is a loss of 50%. Working risk controls into your portfolio management model becomes even more important as the years remaining for […]
Rutherford Portfolio Back-Tests
A Platinum member recently asked me if I would Post the results of back-tests on the 10-asset Rutherford Portfolio, so I started to prepare the Post based on back-tests that I had already performed. These back-tests focused on a new allocation/weighting strategy that I had been working on for a while. The weighting methodology is […]
Dividend Aristocrats: Momentum-Risk Parity Ranking
There are ITA readers who prefer to sprinkle a few individual stocks among their core ETFs holdings. This analysis will appeal to those readers. What I did for this blog post was to first select Dividend Aristocrats that have a yield of 2% or higher. Most, if not all, of these stocks are also listed […]
Risk Parity: A Brief Explanation of How Risky a 60/40 Portfolio Really Is
Gate of Medrese (Athens, Greece) 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 […]
Asset Allocation – Risk Parity Revisited: Part 1
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) – […]