January 2023 Portfolio Review
Whiplash. We went from a pretty bad month to end a pretty bad year to what was simply an amazing January: two portfolios were up +11%, two more +9%, and even the worst was up 5%. Leverage-heavy RPC Growth the best performer; super diversified RPC Stability still first overall.
Risk Parity Resources: Kinlaw et al. (2021)
Interesting paper with a neat take on correlation: its asymmetric and we should focus on downside more than overall correlation. Treasuries still most dissimilar to equities; commodities, not so much. Not exactly a must read, but provides food for thought for the RP investor.
Update on Semi-Direct Real Estate Investing: Groundfloor and Fundrise
Tracking my experiments with two web-based real estate investing platforms: Groundfloor, which offers “hard money” loans to flippers and landlords, and Fundrise, sort of a REIT that allows investors to select properties individually.
AVGE: A Risk Parity Take
This post is inspired by Optimized Portfolio’s totally on-point version of the “distracted boyfriend” meme. AVGE, Avantis’s All Equity Markets ETF, has gotten a lot of buzz lately - does it deserve a strong wandering eye from the Risk Parity investor as well?
Risk Parity Resources: Butler, Philbrick, and Gordillo (2018)
Wonderful analogy of stores selling skis in the winter and bikes in the summer to explain the basics of diversification as the bedrock principle of effective portfolio construction. A must-understand concept for Risk Parity, cleverly and effectively presented.