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.
Made a video addressing a popular concern about financial advisors: when they’re needed, what types there are, how to find a good one, etc. Made a very long video to answer (sorry - but there was so much to say!). To offer penance, I’ve kept the post brief: mostly just helpful links.
First post in the series on Treasury Inflation-Protected Securities (TIPS) is this "basics" article to make sure we're all on the same page. I’ve curated some good video explainers then added some Risk Parity-specific thoughts on TIPS at the end.
Buy low, sell high. This mantra is the easiest, most straight-forward, non-controversial advice you can follow in investing, Risk Parity influenced or not. But what makes it so hard? Why do so many investors not only fail to do it, but actually do the exact opposite of selling low and buying high?
Common problem: I want to sell Asset A but it’s in a retirement account; I don’t want to sell Asset B, but it is what’s accessible in my brokerage account. How do I handle the conundrum? Answer: An Asset Swap, but be careful of the Wash Sale rule! Two embedded videos here to help you out.
