In the past decade, a specialized type of fund gained increased popularity, funds implementing leverage over a given index. A previous article explored funds leveraging the S&P 500 index. This article will focus on a portfolio-level approach mixing stocks and treasury bonds, to quantitatively explore the outcome of leveraging in the context of a long-term buy and hold approach.
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Lazy Portfolios in 2019
The following table lists 2019 total returns for various examples of “lazy portfolios”. Some of the portfolios (Coffeehouse and Coward’s) are designed as 60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios. The two-fund, three-fund, and…
William Bernstein’s Coward’s Portfolio – 2019 update
William Bernstein, investment manager and author, first introduced a version of his “Coward’s portfolio” in 1996. The “coward” refers not to the investor’s risk tolerance but to the strategy of hedging one’s bets and having slices of a number of…
Frank Armstrong’s Ideal Index portfolio – 2019 update
Frank Armstrong III, investment advisor and author, offers the following seven fund “Ideal Indexed” portfolio in his book, The Informed Investor: A Hype-Free Guide to Constructing a Sound Financial Portfolio (published December 16, 2003). The portfolio employs a 70% equity…
David Swensen’s portfolio (from Unconventional Success) – 2019 Update
David Swensen, investment manager of the Yale University Endowment Fund, has addressed how investors should set up and manage their investments in his book, Unconventional Success: A Fundamental Approach to Personal Investment. The Swensen portfolio consists of six core asset…
The Coffeehouse Portfolio- 2019 Update
The Coffeehouse portfolio is an indexed seven-fund portfolio popularized by financial planner and author Bill Schultheis. The portfolio holds the following asset classes: US large cap stocks US large value stocks US small cap stocks US small cap value stocks…
Harry Browne’s Permanent Portfolio- 2019 update
“For the money you need to take care of you for the rest of your life, set up a simple, balanced, diversified portfolio. I call this a “Permanent Portfolio” because once you set it up, you never need to rearrange…
Core Four portfolios- 2019 update
Core four portfolios are simple indexed portfolios that allocate assets across four asset class mutual or exchange-traded funds. The 2019 performance of the core four portfolio based on Vanguard’s life strategy and target date portfolio allocations, and of Rick Ferri’s…
Two-fund portfolio – 2019 update
The 2008 inception of the Vanguard Total World Stock Index fund makes it easy for investors to invest in a simple two-fund portfolio, using a combination of the total world stock index fund with a total US bond index fund.…
Three fund portfolio using inflation indexed bonds – 2019 update
The Taylor Larimore three-fund portfolio is a portfolio design consisting of three “total” market index funds covering the US stock market, the international stock market, and the US taxable investment grade bond market. Newspaper columnist Scott Burns has suggested a…
- Episode 058: Mike Piper on ”More than Enough,” host Jon Luskin
- Episode 057: Dr. Derek Horstmeyer on multiple investment topics, host Rick Ferri
- Episode 056: Dr. Daniel Crosby on the behavioral investor, host Rick Ferri
- Episode 055: Edward Chancellor on economic history and today’s markets, host Rick Ferri
- Episode 054: Christine Benz discusses taxes and safe withdrawal rates in retirement, host Rick Ferri
- Episode 053: JL Collins on the simple path to wealth, host Rick Ferri
- Episode 052: Ryan Barrett and Mike Piper on estate planning, host Rick Ferri
- Episode 051: Christine Franquin and Michael Perre on international stock index funds, host Rick Ferri
- Episode 050: Craig Lazzara on active versus passive funds, host Rick Ferri
- Episode 049: Antti Ilmanen on investing amid low expected returns, host Rick Ferri
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