Short, provocative case in favor of a leveraged, balanced portfolio over an unleveraged, unbalanced portfolio. Should be read in context with Ray Dalio’s work about leveraged Risk Parity and Asness’s later piece (with Frazzini and Pedersen) about aversion to use of leverage.
Comprehensive look at the issue of rebalancing by a leading Financial Planning. Covers what rebalancing is, its benefits, different methods (including time-based and threshold-based), and other aspects for consideration. Key finding for RP investors: 20% (relative) threshold rebalancing looks best.
Example #4,080,875 in the re-hashing of the 4% rule’s drawbacks and reviewed as an example of what my last post ranted against. Neglects portfolio construction, asset selection, rebalancing, and more. Ends where the industry pieces always seem to end up: private annuities.
A can’t miss investing podcast that frequently touches on Risk Parity, this combined show from ReSolve Asset Management will broaden your knowledge base across a wide range of topics. The personable hosts
Older paper (2012) but valuable for two reasons: 1) is realistic about correlation, and 2) pays special attention to correlation in times of market decline, such as the one that just preceded the paper and the one we’re going through now.
