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.

Risk Parity Concepts: the Ulcer Index

Downturns can happen in two directions: depth and length. Both types matter, and the Ulcer Index (UI) is a fantastic metric to intuitively explain the extent of a portfolio downturn. Unsurprisingly, RP portfolios are less stressful than their traditional counterparts, as measured by UI.

Guide to Asset Location in a RP portfolio

As you delve into the world of Risk Parity, you’ll find the topic of asset allocation come up again and again, and with good reason. But what of “asset LOcation” - figuring out in which accounts one should keep various assets, so as to manage the taxation of those assets? Here is a quick guide...