I’ve been incorporating ‘Tail Risk’ ETFs into my portfolios for some time now, specifically TAIL in the Model Portfolio and TAIL, CAOS, and BTAL in my personal portfolio. Given the current market conditions, it feels like an opportune moment—or perhaps the worst time, if you haven’t already invested—to provide a Read more
In April 2022, I introduced on this blog The Italian Leather Sofa Model Portfolio. As a reminder, here is the portfolio composition: The idea behind the portfolio is stolen from here. The link offers the best explanation to what I think is the most common question related to it, i.e. why Read more
Man AHL dropped a new paper on regime-based investing (link). Think of it as the overachiever’s version of lazy portfolios. Instead of building a portfolio that’s resilient across economic regimes—like the Permanent Portfolio—this approach tries to front-run reality. If we’re in stagflation, why hold anything but cash? Or managed futures, Read more
The CFA Institute produced a detailed report on the historical performance of the 60/40 portfolio (here the link). While the breadth of this study is not as ample as other works, think of the UBS Yearbook, I found some interesting graphs…and the hook to write about potential issues in using Read more
I want to talk to you about a crazy experiment. Years ago, an Italian blogger-now-YTer started sharing all his “financial life” in the open, to everyone. I virtually met him because of this experiment, and then I physically met him and now we are friends. I call it a crazy Read more
Ever since I devoured “The Success Equation” on a sun-drenched beach in Malaysia, I’ve eagerly anticipated every new piece from Michael Mauboussin. There’s something about his work that push the intellect, perhaps tinged with the nostalgia of that Malaysian coastline. Michael’s latest release, “Probabilities and Payoffs” delves into the nuanced Read more
I wrote the below post more than 4 years ago. And it still feels super relevant. Ok, enough with the excuses. It is a busy period and it’s been two months at least I do not manage to stay healthy three days in a row. So I decided to do Read more
As someone who runs (hahaha) a podcast, I am in awe of how the guys behind the Rational Reminder continue to find interesting topics to review after more than 300 episodes. Someone said that personal finance was a solved problem—sure. Or maybe, even in this small niche, we also amuse Read more
I like David Dredge’s metaphor of a portfolio like a racing car: you do not need to reduce cruise speed when you have brakes. The 60/40 is a car moving always at the same speed, the one that would keep it on the track even on the nastiest turns (what Read more
A few weeks ago The Rational Reminder podcast did an episode on the Lifecycle Model. The episode features Ben Matthew, an economist with a PhD from the University of Chicago, who has developed a financial planning tool based on the lifecycle model from economics. This model aims to optimize financial Read more