“Sharpe Ratio” is used often on this blog, but not all readers may be familiar with what it is, what it can tell you, and its limitations. So, a Risk Parity Basics post to make sure everyone is on board. In short: it’s a measure of risk-adjusted return that we use to compare assets and portfolios.
Been about six months since I started, so I was reflecting on my purpose: am I advancing the cause I started with? Can I do that better? In a nutshell, I’m recommitting RPC as a place where DIY investors can learn more about alternative asset allocations that go beyond the 60/40.
Time for another addition to the Risk Parity Basics library for those getting started with portfolio construction. This time: strategic asset allocation. What is it? What types are there? How can it help investors?
