Meb Faber Research – Stock Market and Investing Blog

True diversification means moving outside of the typical US Equities and US Bonds to other asset classes. A simple 5 asset class portfolio could consist of :US Stocks (VTI)Foreign Stocks (EFA)US Bonds (AGG)REITs (IYR)Commodities (GSP)An investor looking to add more asset classes could easily approach 15-20 worldwide betas. In this blog, starting Dec 31, 2006 I will track a...

Let's take a look at a way to practically implement risk-parity in a portfolio. A traditional 60/40 mix of stocks and bonds can be leveraged one of three ways. First, through a traditional margin account with the investor being charged the broker call rate + or - an amount relative to their account size. Currently the rate at Fidelity...

Three white papers by Bridgewater and PanAgora to introduce the blog and the topics of post modern portfolio theory and risk-parity... "Engineering Targeted Returns and Risks" - Bwater "The Biggest Mistake In Investing" - Bwater "Risk Parity Portfolios" - PanAgora