Mostly Voices [0:00]

A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines. If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. A different drummer.

Mostly Mary [0:19]

And now, coming to you from dead center on your dial, welcome to Risk Parity Radio, where we explore alternatives and asset allocations for the do-it-yourself investor. Broadcasting to you now from the comfort of his easy chair, here is your host, Frank Vasquez.

Mostly Uncle Frank [0:38]

Thank you, Mary, and welcome to episode 22 of Risk Parity Radio. This will be an abbreviated episode today since it's a day late. We had spent yesterday when I planned to do this episode out at Walden Pond. Thinking about Thoreau and Emerson and all those great thinkers, and so I didn't get to do the episode. So we'll be doing an abbreviated episode today. It is our weekly portfolio review. We will dispense with the portfolio of the week and pick that up again next week. But just taking a look at our six sample portfolios which you can find on the website at www.riskparityradio.com that's www.riskparityradio.com we can see it was a pretty good week for these portfolios but for comparison purposes let's just take a look at what the markets were doing it was a very good week for them as well the s p was up 3. 84%, the NASDAQ was up 4.56%, gold was up 0.73%, and treasury bonds were down, that's the 10-year, I'm sorry, the 30-year TLT was down 0.45% for the week. And that is a pretty normal performance. and plays into how these portfolios perform that you always have something going up and something going down, at least that the way you hope it's going to be that way. So looking at the All Seasons Portfolio, our most conservative portfolio, that was up 1.03% for the week. It is up 0.86% since inception. It is holding in there, even though I think it's a little bit too conservative, but it is a reference portfolio that we would like to keep here to compare with the others. The next one is the Golden Butterfly, which is the one that is 20% gold, 20% short-term bonds, 20% long-term bonds, 20% total stock market, and 20% small cap value. and that one was up 2.06% for the week, and it is up 5.21% since inception in July, so it's doing quite well. And then the next one is the Golden Ratio Portfolio, and it is up 1.96% for the week is up 5.32% since inception, slightly better than the Golden Butterfly. And what is in this portfolio is three stock funds which comprise 42% of the portfolio. That's the Vanguard Large Cap Growth, the Vanguard Small Cap Value, and a low volatility fund that is USMV. And then we have 20% in long, 26% excuse me, in long-term bonds, that's TLT, 16% in gold, that's GLDM, and 10% in REITs represented by the fund R E E T, the iShares Global REIT ETF. And then there's also 6% in cash. Now moving to the Next portfolio, and you can see how these are all performing similarly these days. And this one is the Risk Parity Ultimate, and that was up 1.8% for the week. It is up 4.27% since inception. It is the most diversified of the portfolios, and you can see how that tends to dampen its volatility both On the downside and on the upside a little bit. And then we'll go to our two experimental portfolios. The first one is the accelerated permanent portfolio. This one has 27. 5% leveraged treasury bonds in the form of TMF, the ETF. It has 25% leverage stocks, S&P fund called UPRO, UPRO, and then 25% preferred shares, PFF, and 22.5% gold GLDM. And this one was up 2.3% for the week, and it is up 5.82% since inception in July. And then our last portfolio, Our most volatile one, the aggressive 5050, which is also one of our least diversified actually. It is up 5.03% since inception and was up 2.75% last week. And that one has one-third UPRO, the leveraged stock fund, one-third TMF, the leveraged bond fund, and then 17% PFF, the preferred stock fund, and 17% VGIT, which is a Vanguard intermediate term treasury bond fund. And so all in all, it was a good week for these portfolios. You can see that they're not quite as exciting as if having you invested in a total stock market fund, which would be up or down a lot more in any given week. These have built-in dampened volatility. That's why you always have something going down and something going up for the most part. And you hope they work that way because as the treasury bonds decline in value and you see the stock market going up at some point when the stock market goes down, those treasury bonds are going to kick back in and they will go up in value because they are negatively correlated with the stock market. and with that, I see our signal is beginning to fade. This is our shortest episode, but you gotta have a short one sometimes. We'll be back at it this week with a topic to be determined for a podcast that will come out on Wednesday or Thursday, and then we'll do our portfolio review of the week. And we will feature a portfolio next week, the aggressive 50/50 and compare that to a couple of David Ramsey style portfolios. If you have any questions or comments or just want to email me for any reason at all, you can send that email to frank@riskparityradio.com that's frank@riskparityradio.com or you can send it through the website which you can find at www.riskparityradio.com and there is a contact form there. Thank you for listening in. This is Frank Vasquez with Risk Parity Radio, signing off.

Mostly Mary [8:12]

The Risk Parity Radio Show is hosted by Frank Vasquez. The content provided is for entertainment and informational purposes only and does not constitute financial, investment, tax, or legal advice. Please consult with your own advisors before taking any actions based on any information you have heard here, making sure to take into account your own personal circumstances.