Justin

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.

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.