Visualizing Diversification
Regardless of the investing environment, diversification can help lower total portfolio volatility and stabilize, or even increase, returns. This wonderful illustration demonstrates just how important diversification is and what impact combining multiple asset classes can have in your portfolio.
Preferred Asset for Cryptocurrency: GDLC
I must admit, I'm not necessarily a cryptocurrency believer, much less a proponent, but I do want to track it and do have it in one of the test portfolios (RPC Growth). This trust, which operates a bit like a closed-end fund but may soon become an ETF, is my preferred vehicle for crypto.
Panic at the Bond Market
Bad times for bonds lately, for sure. The extent (-12.3% for BND since November) is certainly not nothing, but has produced howls and hyperbole far outstripping what would accompany a similar loss for equities. Why do bond losses produce such outsized panic?
Risk Parity Resources: Cooper (2018)
A critique of RP that is really a critique of a RP Strawman invented by the author. Also makes an empirical case against RP using a backtest, but data since publication proves the opposite point. After reading this, I’m still on the lookout for effective critiques of RP.
Simple Portfolio Rebalancing Spreadsheet
Investors who try to maintain any given asset allocation in a portfolio will soon find that asset price ups and downs have taken that portfolio "out of whack." Here’s a quick explanation of rebalancing - getting that portfolio back in line - with a helpful tool to make the process easier.