I live in Europe and the majority of this blog readers are European as well. The most recurrent complaint I receive is that I focus on USD investment without acknowledging the related FX risks for European investors. The Model Portfolio is built with USD assets simply because it was easier Read more
I honestly do not know why the “holy s*&t Target Date Funds must have had an awful period” just came to my mind. I wrote a post on the infamous the Cederburg’s paper, A Critical Assessment of Lifecycle Investment Advice, not a long time ago. One of the (few?) reasonable Read more
A few days ago a reader suggested I check Testfol.io and…I am so glad he did! (another guy on Twitter later told me that their database is not always correct, so ¯\_(ツ)_/¯). When it works, Testfolio is the best of PortfolioVisualizer with the best of PortfolioCharts. PV was constrained by Read more
[yes, I copied this post title from a famous newsletter, what can I say…] Last week Lorenzo Biagi (author, financial advisor and…finfluencer? ;)) posted the following picture, unfortunately without the source links: These two graphs offered him the opportunity to stress how bonds might be unattractive at this point, especially Read more
“The world’s most sophisticated institutions invest using asset/liability matching strategies to help them properly navigate their liquidity needs over time. Banks, pensions and other large institutions don’t rely on vague “risk profiling” processes or Modern Portfolio Theory and instead use practical asset/liability matching strategies. Retail investors, on the other hand, Read more
Universa Investments LP published a paper to challenge the rationale behind the effectiveness of a leveraged diversified portfolio, in particular the infamous 60/40. Universa Investments has always stressed the importance of mitigating the largest drawdownsas the most effective way to improve compound returns over time. However, risk mitigationneeds to be Read more
A couple of weeks ago, Adam Butler from ReSolve published a white paper called “Managed Futures Carry: A Practitioner’s Guide”. ReSolve AM is Corey Hoffstein’s partner in crime behind the Return Stack concept; they floated on Twitter the idea of stacking carry on top of stocks and I was eager Read more
Being the one that “works in finance”, and more and more because of this blog, I have been asked for advice*. For this reason, and considering the dumbfounding difference between the state of the financial advisory industry in the US compared to Europe, my mind sometimes wonders why we are Read more
“you do not eat risk-adjusted returns” How many times I have heard it. Well, not literally like this because, if you are able to frame it this way, you know it is not 100% true. Usually, it comes in the form of “stocks generate higher returns than that”. Meaning, why Read more
Warning: this might be a self-serving post. A juice of pure confirmation bias. The comfy blanket I look for when I am scared. You probably know my model portfolio (and if do not, click on the link ;)). 66% of it, or 100% depending on how you perceive it, is Read more