Announcing some changes to some test portfolios to reflect new perspectives on the best assets to hold in an RP portfolio. And another change freeing my growth portfolio from the 10,000 pound anchor dragging it to the bottom of the sea.
Couple of things, none deserving of a full post, so I’ll just smash them together: 1) Changes to RPC Income portfolio, now with Utilities, 2) update on inflation and withdrawals, and 3) When Does the Leaderboard Change?
In the last installment, we looked at replacing REITs with other common asset classes, but what if we stretch a little farther? Utilities ETFs offer promise at doing all the things people say they want REIT ETFs to do…but better. Again, check out the backtests!
The case behind having REITs as a distinct asset class in a Risk Parity portfolio is not looking too good so far. But what should one do instead? Here is a look at increasing allocations in other types of equities instead of allocating to REITs. Complete with backtests!
One of the two original portfolios, this one uses a modest amount of leverage to create space for allocations to more assets which produce dividends. Even with all this leverage, it projects to have the same volatility as the Classic 60/40! (and higher returns!!).