Episode 263: A Common Modeling Mistake, Low Beta Funds, And Fun With Finland

Risk Parity Radio

In this episode we answer emails from R.J., Mark and Jaako. We discuss how amateur investors doing projections often double-count inflation accidently and apply inappropriate tax rates, using low-beta funds in portfolio construction, and ETFs designed to combat inflation in Finland and elsewhere.
Note I misspoke and the USMV low-beta portfolio does better than the two created in Mark's backtests.
Links:
Value Stock Geek's Podcast Interview of Tyler from Portfolio Charts: Tyler (@PortfolioCharts): The Amazing Power of Uncorrelated Assets (securityanalysis.org)
Portfolio Visualizer Monte Carlo Simulator: Monte Carlo Simulation (portfoliovisualizer.com)
Rational Reminder Interview of Professor Campbell: Prof. John Y. Campbell: Financial Decisions for Long-term Investors | Rational Reminder 250 - YouTube
Analysis of Low Beta Portfolios: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)
Mark's Correlation Analysis: Asset Correlations (portfoliovisualizer.com)
Fund Page for Jaako's Fund: Lyxor EUR 2-10Y Inflation Expectations UCITS ETF - Acc | LYX0U6 | LU1390062245 (justetf.com)

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