Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
I stay far, far away from "risk parity" portfolios or as some fund companies like to call them "balanced risk" portfolios. Backtesting of the portfolios is an artifact of 30yrs of declining interest rates. And the title of the article? More money, less risk? Sorry but how is a dramatically levered fund -- often using massive amounts of swaps and other derivatives, less risk? Not only that but I think it's funny that people are going to these risk-parity "alternatives" because they don't like the low yielding bond environment but all these funds are doing is LEVERAGING the BOND portion of the portfolio. I have so many issues with these strategies.......
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