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 Risk Parity Radio. If you are new here and wonder what we are talking about, you may wish to go back and listen to some of the foundational episodes for this program. Yeah, baby, yeah! And the basic foundational episodes are episodes 1, 3, 5, 7, and 9. Some of our listeners, including Karen and Chris, have identified additional episodes that you may consider foundational. And those are episodes 12, 14, 16, 19, 21, 56, 82, and 184. And you probably should check those out too because we have the The finest podcast audience available.

Mostly Voices [1:28]

Top drawer, really top drawer.

Mostly Uncle Frank [1:31]

Along with a host named after a hot dog.

Mostly Voices [1:34]

Lighten up, Francis.

Mostly Uncle Frank [1:37]

But now onward to episode 272. Today on Risk Parity Radio, it's time for our weekly and monthly portfolio reviews of the seven sample portfolios you can find at www.riskparityradio.com. On the portfolio's page.

Mostly Voices [1:56]

It's time for the grand unveiling of money! But before we get to that, I'm intrigued by this, how you say, emails. And? First off, we have an email from Thurston Howell VI. You were saying something, little boy? And Thurston writes：There's only one use for money and that's to make more money. But Mr. Howell, I want to spend it to make people happy. Well, that's a very noble sentiment, very warm and generous, but stupid. Hello, Frank and Mary.

Mostly Mary [2:33]

Thank you for creating such an enjoyable and educational podcast. I look forward to it every week. You've mentioned DBMF on a number of occasions, so I've been trying to learn more about it. I tend to stick to basic, straightforward, boring old index funds, so DBMF has me a little confused. If I'm understanding the DBMF prospectus correctly, it follows an algorithm that seeks to match the performance of hedge funds. It does this by following a trailing 60-day performance metric, investing in assets that reflect the asset allocation of the selected funds. DBMF rebalances weekly and may change its investments when it does. It seems to me this strategy would work when economic conditions continue on the same trajectory for more than 60 days, but would fail in periods of volatility. Isn't this just performance chasing with a 60-day look back? Or is there something more nuanced that I'm missing? I respect how well this fund performed during 2022, Is there something inherent to its investment strategy that explains why it performed well during a high inflation, rising interest rate environment? Shouldn't it do well in any environment that continues on the same trajectory for an extended period of time? Should we expect this fund to have similar outstanding performance the next time there is high inflation? Or did they just get lucky? Please help me understand how this fund works. Thanks for your thoughtful and humorous response, Thurston Howell VI.

Mostly Voices [4:13]

Well, you haven't got the knack of being idly rich. You see, you should do like me, just snooze and dream. Dream and snooze. The pleasures are unlimited.

Mostly Uncle Frank [4:23]

All right, let's talk about DBMF again. We first talked about this when we did a 10 question analysis of it. Back in February 2021, that's in episodes 55 and 57, you'll also find discussions of it in episodes 199, 214, 216, 218, and 224. Now what this is, is a managed futures fund, and it's a special kind of managed futures fund, which I'll talk about in a minute. that follows an index or rather replicates an index. So managed futures are usually traded by what are known as CTAs and hedge funds that do this. And what the method of trading for this is typically to follow the trend in a particular thing. Now, these are generally not applied to stock market investments, although they can be. What they're typically applied to are investments in currencies. So one currency against another. They're applied to commodities and they're applied to interest rates. All of these things have active futures contracts that are traded on exchanges and so you can buy and sell futures contracts based on whether you think the thing is going to go up or down. Now a futures contract Always expires at some point in the future. So you can buy, say, January wheat or September US long bond interest rate.

Mostly Voices [6:02]

I'm considering going long on April wheat.

Mostly Uncle Frank [6:08]

What do you think, Valentine? Or you could sell those and take the short position.

Mostly Voices [6:14]

I can think of three real good reasons why you shouldn't do something like that, Judge. One, the Russian wheat harvest isn't gonna be as bad as everybody thinks. And two, and three, JPMorgan leaves jewels around your girlfriend's neck here. I think you'll need every penny you got just to keep her happy.

Mostly Uncle Frank [6:31]

This method of trading has been around essentially as long as futures contracts have been around, which in the modern day dates largely from around the 1970s. '70s. Tell them the good part.

Mostly Voices [6:48]

The good part, William, is that no matter whether our clients make money or lose money, Duke and Duke get the commissions. Well, what do you think, Valentine? Well, it sounds to me like you guys a couple of bookies.

Mostly Uncle Frank [7:08]

and it's had periods in which it was successful and periods in which it was not successful. But there have been hedge funds that do this going back decades now. Now, although this is generally profitable over time, typically it has not been very accessible for do-it-yourself investors because the kinds of funds that you could invest in charge very high fees, typically two percent or three percent or something like that. So it really was not worth it given what was out there. These days, however, we now have a few ETFs like DBMF and KMLM that have fees that are under 1%. I think they're around 0.7 or 0.8, which is still high by general standards but is very low by the standards for these types of funds. and it's got to a range where it is a feasible investment for do-it-yourself investors. Now, what's so special about DBMF? DBMF is one of the first funds to try to essentially create a kind of index fund for this sphere. Now, you really can't create an index fund for a bunch of people trading a bunch of things back and forth. But what they do is monitor something that's called the SOC gen index, the SOC Gen CTA index. SOC Gen stands for Societe Generale, the French bank. And then they actually use an algorithm to replicate as best they can what the essentially consensus trades are of all the traders on that exchange or in that index, I should say. And so the holdings of this are changing all the time based on the SOC Gen index. you can download the holdings and it'll come to you in a little Excel spreadsheet and you can see what it's holding. These days it's doing things like it is short interest rates. Those are US Treasuries. It is short those. It is short the Yen. I think it's long gold, long the S&P 500 and a small contract and long the Euro. So as you can imagine, it generally performs very differently from all of your other assets. which is why you want to hold it because it's uncorrelated. So to your specific question, is there something inherent to its investment strategy that explains why it performed well during high inflation, rising interest rate environment? And the answer is yes, because that was trending. It was trending throughout the whole year, and so it was riding that whole trend being short those bonds or interest rates, so as interest rates went up, We'd continue to make money. Shouldn't it do well in any environment that continues on the same trajectory for an extended period of time? Yes, that's exactly what it's designed to do. You are correct, sir, yes. Should we expect this fund to have similar outstanding performance the next time there's high inflation? Or did they just get lucky? No, you should probably expect that to occur again because what happens when there's high inflation is you can see central banks keep raising interest rates creating this trend. that something like this is gonna ride on.

Mostly Voices [10:20]

That's what happens, man!

Mostly Uncle Frank [10:24]

And then you are going to get positive returns. You're also going to get positive returns out of the commodities complex because at one point this was also long oil and other things like that, although it's not anymore.

Mostly Voices [10:35]

I want my money, man!

Mostly Uncle Frank [10:38]

So in the past, typically this kind of strategy has worked very well in environments like the 1970s and part of the 1980s. It worked well during the crash years in 2008 and also in the commodity run-up that occurred before then. But then it performs poorly in kind of normal or ordinary times like the 1990s or the past decade. The period from 2010 to 2020 was actually one of the worst periods for this kind of strategy. Which is why a lot of the funds that existed around 2008 or 2009 no longer exist. It's gone. It's all gone.

Mostly Voices [11:19]

What's all gone? The money in your account. It didn't do too well. It's gone.

Mostly Uncle Frank [11:26]

And so that's ultimately what makes this strategy and fund interesting. It has a decent positive return over time, but it has zero correlation to both stocks and bonds. and typically performs well when we have years like 2022.

Mostly Voices [11:42]

Yeah, baby, yeah!

Mostly Uncle Frank [11:47]

And so the strategy makes for a nice diversifier in a portfolio. What we really didn't know when we first looked at this back in 2021 when it was relatively new, and I first learned about it from the Barry Ritholtz podcast, which is called Masters in Business, highly recommended. Really top drawer. And that was the real question I had in my mind at the time. If we had a period where there was inflation or some dislocation, would this stand up and perform like you would expect it to perform in a positive way? And what 2022 really kind of proved is that, yes, it does work as advertised. It does do what it's supposed to do when you would expect it to do it. That's what I'm talking about. So it makes it a very viable thing to hold if you are looking for additional diversification in a portfolio. And I have been buying more of it in our personal portfolios and will accumulate it and then just hold it. I don't think it's something you want to go crazy with. I know that people that like these strategies want to put 20 or 30% or more in these kind of strategies. I think something more like 10% would be more appropriate. But that also is going to depend on the kind of fund it's in and what the volatility of the fund it's in. Because by their very nature, these kinds of funds have leverage built into them in the form of the futures contracts they hold. And you can take more leverage on a position or make the position bigger. Simply by buying more futures contracts, which is not the same as actually buying the underlying wheat or bond or whatever the thing is that you're trading. So hopefully that helps explain you some or explain you some more. I would go back and listen to those other podcasts I referenced, particularly episodes 55 and 57 to get a full picture. And I will put your links in the show notes as well as where to link to What the thing is holding because that changes all the time. So very good question and thank you for your email.

Mostly Voices [13:59]

Now let me finish that dream on a pleasant note. The wholesale arrest of the Supreme Court. Hah! Second off, we have an email from my contact info. Oh, I didn't know you were doing one. Oh, sure.

Mostly Uncle Frank [14:18]

And my contact info writes, hi,

Mostly Mary [14:21]

Frank and Mary. Enjoy all the podcasts, but the rants are especially interesting.

Mostly Voices [14:26]

You are talking about the nonsensical ravings of a lunatic mind.

Mostly Mary [14:33]

Examining the snail mail solicitations was brilliant and extremely educational.

Mostly Voices [14:40]

Have you ever heard of single premium life? Because I think that really could be the ticket for you.

Mostly Mary [14:44]

Not sure if appropriate, but would look forward to learning how your children became interested in rowing. Thank you.

Mostly Uncle Frank [14:48]

All right, we can do a little frolicking detour here. First, the episode that is being mentioned where we were ranting about free steak dinner solicitations was episode 267. Always be closing.

Mostly Voices [15:02]

Always be closing.

Mostly Uncle Frank [15:06]

And you can check that out if you like the nonsensical ravings.

Mostly Voices [15:10]

Hearts and kidneys are Tinker Toys.

Mostly Uncle Frank [15:14]

As for rowing, it was interesting because it was really by happenstance, or serendipity, you might call it, that our children ever picked up an oar and rowed in a boat. I'm stroking.

Mostly Voices [15:29]

That's what I'm doing. I be stroking. We have three boys, and fortunately they take after their mother.

Mostly Uncle Frank [15:37]

in connection with athletic abilities, since I don't

Mostly Voices [15:41]

have any. You're not going to amount to jack squat! Mary will be mad if I toot her horn, but I'll do it anyway.

Mostly Uncle Frank [15:49]

She was a Division 1 athlete in track in college and probably could have swam at a Division 1 level if she had chosen that path. Winner, winner, chicken dinner. So she encouraged our children to get involved in sports at an early age. and two of them really took to basketball, the eldest and the youngest, and the middle one took to football because he really doesn't like holding a ball or doing anything like that. He just wants to roll on people. He's been like that since he was a baby. So, when they got to high school, our eldest one had a friend who was interested in rowing because he had had some rowers in the family, and this friend had a twin brother. He's actually part of a set of triplets. And they usually would do things like that together, but his twin brother had no interest in rowing at all. And so when Leander Rowing Camp came around before their freshman year, Frank's friend Leo asked him if he'd go. And Frank decided to go. And he liked it enough to think that, well, yeah, this is something I can do in the spring after basketball season's over. And a bit in the fall because they do a fall rowing as well. And as we say, the rest is history. He really took to it. And they had a really good coach there. So rowing became a very important sport, and they won big regattas like the Stotesbury Cup, and they won national championships.

Mostly Voices [17:17]

You make it hard, long, soft, short, and be stroking.

Mostly Uncle Frank [17:23]

I be stroking. And I got to stand on the sidelines and film it all.

Mostly Voices [17:31]

Yes! Because that was my contribution.

Mostly Uncle Frank [17:42]

And it looks like they're gonna do it for the first time in 50 years. We'll see somebody win the Super Bowl four years in a row. Let's go, Joe! I do the cheerleading around here. And so after 10 years of filming, rowing, and editing rowing videos, I turned to podcasting. Gotta use those skills for something. Girls only want boyfriends who have great skills. But anyway, so all three of them ended up rowing in high school, and then all three of them have rowed in college. And our eldest is now a coach at the University of Virginia and also at the Albemarle High School in Charlottesville, Virginia. And we have an erg machine in the basement, a concept two, and all the accoutrements. My parenting lesson for all of that is let your children follow their curiosities because you never know where they might lead and just how grand the whole thing might be.

Mostly Voices [18:47]

It's hammer time, boys. JC's gotta put it down. trophy. As close as they come. Come on, guys. Come on. Pull it. Pull it. Just like a bow ball at the line. I think we did it. They hammered on in for that hammer trophy. It is hammer time. Hi, Ned.

Mostly Uncle Frank [19:30]

On a more somber note, I just got back today from the funeral of the athletic director at their high school who died suddenly of a heart attack last week. He was only in his early 50s, but he had been a big supporter of the rowing program there, and he will be sorely missed. His name was Joe Rada, and all of the coaches there were his pallbearers. But I think we'll leave that all there and get back to our regularly scheduled program. But thank you very much for your email. I do like chatting about other things every once in a while.

Mostly Voices [19:59]

And now coming into the awards dock. Winners are the boys, second eight, and the hammer trophy, those high flying eagles. It's Gonzaga. Last off.

Mostly Uncle Frank [20:24]

Last off, we have an email from Keith and Keith writes, Hey Frank, just found

Mostly Mary [20:28]

your podcast and I am really enjoying it. Do you have an episode that addresses how to divide your assets into your tax sheltered and taxable accounts? Let's do it. Let's do it.

Mostly Uncle Frank [20:46]

Well, good question, Keith. Yes, we have talked about this from time to time. Usually this subject is labeled asset location as opposed to asset allocation. Asset allocation is how much of something are you going to hold in percentage terms. An asset location is which accounts are you going to put it in? It's all the same to you.

Mostly Voices [21:13]

I'll drive that tanker.

Mostly Uncle Frank [21:17]

Now a few of the episodes where we've talked about it before, episodes 121, 143, and 163. But let's talk about it some more. Most people in the US are likely to have two or three different kinds of accounts. The first would be your traditional 401k or IRA. The second would be a Roth 401k or IRA. And then the third is an ordinary brokerage account. And you might have all three of those or you might just have some kind of a mix of two of them. The most common two would be the traditional IRA and 401k and the ordinary brokerage account. Roth IRAs have just not been around that long, and Roth 401 s have been around even less time, but they're becoming more popular because they are even more valuable than they used to be in terms of inheritance vehicles. Now, you might also have HSAs or a few other things. A great many things. But basically, you're looking at two different kinds of treatments in terms of your assets. Either transactions are taxed or the transactions are not taxed and you're taxed on withdrawal from the account. So transactions are taxed in a taxable brokerage account. And the transactions that are taxed are whenever you receive any kind of dividend or interest income, and then whenever you sell something at a gain. Now most of those transactions actually receive favorable tax treatment if you hold them long enough. Because if you have something that pays a qualified dividend, which most stocks pay, not REITs though, not REITs, and not things that are bonds or other non-stock things, but if you get what's called a qualified dividend, It is taxed as long-term capital gains. And long-term capital gains are the most favorable tax rates available. They are 0% for low-income earners, 15% for most people, and that goes up to about $500,000 in income a year these days. And then over that, you get taxed at a rate of 20%. Those are federal tax rates you also have to add on. whatever state taxes might apply. Now on the other side we're talking about transactions or assets that you hold within a IRA, could be a traditional one or a Roth one or an HSA, anything that is known as a qualified account, which is different from a qualified dividend, completely different things. But a qualified account typically gets this kind of treatment. And what this kind of treatment is, is that you can buy or sell as much as you want in an account like that. You can collect as much income you want in an account like that, and none of those transactions are ever taxed, which sounds great. But here's the catch. When you take the money out of a traditional IRA, not a Roth, when you take it out of a traditional IRA or 401k, that is called a distribution. and it is taxed at your ordinary income rate for that year. So it's taxed at a worse rate than you would pay on a qualified dividend or for long-term capital gains in a taxable brokerage account. Now, what is different about the Roth accounts is that you are not taxed on that either. So for Roths, you're not taxed on any of the transactions and you're not taxed on the withdrawals. Groovy, baby. So out of these basic rules, you end up with a few rules of thumb. The first is to the extent things are paying ordinary income, you generally want to put those in your traditional IRA or 401k. Because if they pay ordinary income in there, they won't get taxed at the time. They'll only get taxed when you take the income out. Now why don't you want to put things in there that pay qualified Dividend income. The reason is this, if you held something in a IRA and it pays you a qualified dividend in the IRA, suppose it pays you $5 and you wanted to take out that $5, when you took it out of there, you would have to pay ordinary income tax out of it because it would count as a distribution from the account and you wouldn't get the favorable tax benefit for the qualified dividend there. So the first general rule of thumb is to put things that pay ordinary income, particularly if it's a lot of ordinary income, into your IRA or 401k as a location. Now what would go in your Roth? In your Roth, because it's never taxed in any way, shape or form, well you could put anything in there you want, but typically you want to put in the things that you think are going to grow the most. Over time, because the idea is then if they grow a whole lot, there's some kind of speculation in Bitcoin or some kind of high-flying tech stock that you happen to be holding for some particular reason. You have a gambling problem. That would be a place to put it. The most famous investment in a Roth IRA is what Peter Thiel did back around 2000. He put the shares, I think, of PayPal or some other company that he was investing in into a Roth IRA when they weren't worth anything. And then, of course, when the company went crazy and grew a whole lot, now he's got a Roth IRA that's worth billions of dollars or something ridiculous like that. You can't handle the gambling problem.

Mostly Voices [27:09]

That is an outlier example.

Mostly Uncle Frank [27:13]

Really? But it's why if you have something you think has a potential to grow a whole lot as an asset location you would put it in your Roth IRA. What does that leave you in your traditional brokerage account? It's typically stock funds that are either not paying dividends or low dividends and are paying qualified dividends. So your basic total market index fund that can go in your taxable brokerage account. Did you get that memo? If you had a REIT fund though, you wouldn't want to put it in your taxable brokerage account because it's not paying qualified dividends, it's paying ordinary income. So that would want to go into your traditional IRA or 401k because also it's probably not got a huge growth potential either. Your bonds want to go in your IRAs Typically your traditional IRAs, you've got room in there. And then you get to alternative assets. Cool. So what about something like gold? This is gold, Mr. Bond. Well, I'm not going to actually go through the description of how gold is taxed because I always screw it up when I try to do it orally. I will link to something in the show notes. That explains it from portfolio charts. Essentially, it's something like your ordinary income tax rate, but with a max cap of 28%. Now, when is it taxed? It's taxed only when you would sell it at a profit, because it doesn't pay an income. So the way I tend to treat it is, well, where do I have room for it? Because you're not going to be making a lot of transactions with it typically. If you've got room in the IRA, stick it in there. the next place I would probably put it is in your ordinary brokerage account, which isn't that bad because you're probably not holding that much of it and you're not going to be doing a whole lot with it most of the time. And then the last place you would probably put it is in a Roth because you don't expect it to grow a whole lot either. Now what about other things like commodities or managed futures? Typically you want to put those in your traditional IRA or 401k. and the reason for that is they generally and often pay significant distributions at the end of the year based on whatever transactions went on there for the full year. And that is typically treated as ordinary income, not as qualified dividends. So that's the general place you want to put those. And they can also go into Roth, but again, I would not expect those to be having lots of growth potential. But hopefully that summarizes that. There is one thing that has changed in the recent past in that prior to last year, your short-term holdings, your short-term bonds, really weren't paying any interest, so you could just leave those in your taxable account because you weren't getting much on them anyway. Now those are paying significant amounts of interest, and so to the extent you're holding a lot of short-term bonds, or something similar, Money Market CDs, whatever, you probably want to put those also into your IRA or 401k, at least for now. The thing about those things though is you can buy and sell them and move them fairly easily. I will also link to a nice video in the show notes put out by our friend Justin over at Risk Parity Chronicles who talks about how to swap an asset from one of these accounts to another because you need to know what that technique is when you start drawing down on something. So if something is, for example, in an IRA and you wanted to take your monthly distribution from that asset by selling it, but you didn't actually want to take the money out of the IRA and incur a tax liability, you could sell something that's in your taxable brokerage account and then do another transaction in your IRA where you sell the thing that you wanted to sell and buy back the thing that was in your taxable brokerage account to keep your allocation where you wanted it to be. But I'll link to that in the show notes. It's explained a lot better in that video than I just explained it. If you can call that an explanation. I award you no points and may God have mercy on your soul. Now all of this is very dependent on the size of these accounts and this is going to be a different calculation for every different person pretty much depending on what they end up holding and then also what their plan is for converting their traditional accounts to Roth accounts. Which is a separate idea but is also a good idea when your income is otherwise low in a given year. The main thing to take from this is don't let the tax tail wag the investment dog. So you never want to be setting your asset allocations by whether they're taxed or not. What you want to do is figure out what your overall portfolio is going to be and then figure out what's the best way to locate those particular assets. Because you want to make sure that you're actually holding what you want to be holding. and not using the fact that you have tax implications changing your overall asset allocation, which is generally not a good idea. Not gonna do it. Wouldn't be prudent at this juncture. But I suppose there's always exceptions that people can come up with. Forget about it. Anyway, hopefully that helps and thank you for your email.

Mostly Voices [32:59]

Now we are going to do something extremely fun.

Mostly Uncle Frank [33:03]

And the extremely fun thing we get to do are our weekly and monthly portfolio reviews of the seven sample portfolios you can find at www.riskparityradio.com on the portfolios page. It's been an interesting first half of the year that I don't know of anybody who predicted. I think the NASDAQ is up the most. It's been up in the first six months of the year since something like 1983. which is interesting because it was also shortly after Paul Volcker raised those interest rates so high, although I think by then he was lowering them. But you also see now that this means we are now taking distributions out of our stock funds, in particular our growth funds, because they've really been growing a lot. And this also goes to show you why market timing really does not work and can be really dangerous, in fact, because it's I think the people that missed this kind of rally, which was over 6% in just June, are the ones that are going to underperform the market. It's typical classic amateur hour for somebody to have looked at something like 2022, have changed their allocations to go more to cash, take money out of stocks, and then turn around and watch the stock market. climbed nearly 7% in a month, and they missed it. If you miss things like that, you're going to have a portfolio that underperforms. And I mean underperforms its own holdings. That's the fact, Jack! That's the fact, Jack! But we all know better than that, don't we? Just looking at what these markets did last week, The S&P 500 was up 2.35% for the week. The Nasdaq was up 2.19% for the week. Small cap value represented by the fund VIoV was one of the big winners. It was up 4.16% for the week. Gold was down last week. Gold was down 0.21% for the week. Long-term treasury bonds represented by the fund VGLT were also down a little bit. They were down 0.44% for the week. REITs were actually the big winner last week. Our representative fund, R-E-E-T, was up 4.41% for the week. Commodities represented by the fund, PDBC, were down. They were down 1.02% for the week. Makes them the big loser. Preferred shares represented by the fund PFF were up 1.58% for the week. And managed futures represented by that fund, DBMF, were up 0.47% for the week. Now moving to these portfolios, first one is this All Seasons, this reference portfolio. It is 30% in a total stock market fund, VTI, 55% in intermediate and long-term treasury bonds, and the remaining 15% divided into gold and commodities. It was up 0.70% for the week. It is up 6.83% year-to-date. and down 1.75% since inception in July 2020. We are withdrawing out of this at a 4% annualized rate. And so it'll be $30. We'll take that from the stock fund VTI, which has been performing the best for July. That will be $206 year to date and $1,180 since inception in July 2020. And all of this is recorded on the portfolios page if you want to look at the details. Boring! Now moving to these bread and butter kind of portfolios. First one's this Golden Butterfly. It's 40% in stocks divided into a total stock market fund and a small cap value fund, 40% in bonds divided into short and long term, and then 20% in gold, GLDM. It was up 1.31% for the week. It was up 6.48% year to date and up 14.17% since inception in July 2020. Just plugging along there. We'll be taking $41 out of it for July. That's at a 5% annualized rate. It will come from accumulated cash from all that income and dividends. We'll have taken $286 out of it year to date and $1,584 out of it since inception in July 2020. Moving to our next one, the Golden Ratio. This one's 42% in stocks divided into three funds, 26% in bonds, 16% in gold. Those are long-term treasury bonds, by the way. 10% in a reit fund and 6% in cash in a money market fund. It was up 1.61% for the week. It's up 8.12% year to date and up 10.84% since inception in July 2020. It's catching back up to the Golden Butterfly. We'll be withdrawing $40 out of it for July. That's at a 5% annualized rate. And then it will come from cash because that's the way we do the distributions out of this. They all come out of cash. And then we'll be rebalancing it We're actually gonna be rebalancing this one, the Golden Butterfly, the All Seasons, and the Risk Parity Ultimate, all around July 20th, when their anniversary date is for rebalancing. And we'll get to that in a future episode. Look, it's MacGyver. We'll have taken $276 out of it, year to date, and $1561 out of this Golden Ratio portfolio since inception in July 2020. Next one's the Risk Parity Ultimate. This one's got 15 funds in it. I won't go through them all. It was up 1.54% for the week. It is up 8.93% year to date and up 2.95% since inception in July 2020. We're withdrawing from this at a 6% annualized rate. It'll be $43 for July and it'll come out of accumulated cash. That will be $298 year to date and $1,794 since inception in July 2020. Now moving to these three experimental portfolios that involve leveraged funds. First one is the Accelerated Permanent Portfolio. This one's 27.5% in a leveraged bond fund, TMF 25% in a leveraged stock fund, UPRO 25% in PFF of Preferred Shares Fund, and 22.5% in gold, GLDM. It was up 2.14% for the week. It is up 13.81% year to date and down 13.25% since inception in July 2020. We'll be taking $35 out of it for July. That's at a 6% annualized rate. It is coming from the stock fund UPRO, which has been doing quite well recently. It'll be $240 from it year to date and $2065 since inception in July 2020. Next one is the aggressive 5050, our most levered and least diversified portfolio. This is 33% in a levered stock fund, UPRO, 33% in levered bond fund, TMF, and the remaining third divided into intermediate treasury bonds and preferred shares as ballast. It was up 2.33% for the week. It's up 16.15% year to date, similar to the stock market and down 19.13% since inception in July 2020. We'll be removing $33 out of it from cash that is accumulated for July that's at a 6% annualized rate. That'll be $220 out of it year to date. $2,053 out of it since inception in July 2020. And now moving to our last one and youngest one, the levered golden ratio portfolio. This one's 35 in a levered stock and bond fund, NTSX. That's the S&P 500 in Treasuries, 25% in gold, GLDM, 15% in a REIT, O, 10% each in a small cap fund, TNA, and a Bond Fund, TMF, both leveraged, and the remaining 5% in a Volatility Fund and a Bitcoin Fund, which has done quite well recently. But anyway, it was up 1.8% for the week. It was up 8.1% year to date and down 17.24% since inception in July 2021. We'll be taking $31 out of it for July at a 5% annualized rate. It'll come from cash, which has accumulated. It'll be $214 year to date and $1,024 since inception in July 2021. And that concludes our weekly and monthly portfolio reviews. But now I see our signal is beginning to fade. You have comments or questions for me, please send them to frank@riskparityradio.com that email is frank@riskparityradio.com Or you can go to the website www.riskparityradio.com, put your message into the contact form and I'll get it that way. If you haven't had a chance to do it, please go to your favorite podcast provider and like, subscribe, give me some stars, a review. That would be great. Mmmkay? Thank you once again for tuning in. This is Frank Vasquez with Risk Parity Radio. Signing off.

Mostly Voices [42:48]

I be stokin' I be stokin' to the north, I be stokin' to the south, I be stokin' everywhere I even stokin' with my I be stokin' the

Mostly Mary [43:07]

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.