Topic should say RISK parity investing... oops.
http://finance.yahoo.com/blogs/breakout/risk-parity-investing-allocation-model-112532060.html?l=1
So i saw that video above talking about the following four approaches instead of stocks and bonds. Commodities (He says do well in times of inflation), Equities (Does well in positive growth).., Credit (people be borrowin' money), Interest Rates.(fixed rate bonds for negative inflation) .. (these are the four buckets he looks at).
Then I saw this article: (goldman predicts 18% growth on commodities) - which do well in inflationary times.
http://finance.yahoo.com/news/goldma...19059.html?l=1
So what does that mean? Inflation is coming? - Also from a post Melonie Did - mentioned 25% returns on commodities during QE in chart...
Bottom line is I'm gonna add his fund to my tracker - SRPFX - but it's only a month old. Lets see how this plays out. (i'm not endorsing this in any way - it's for the sake of learning new ideas). We shall see.... Thoughts on this approach? It's only got a very short history but the principles of the four pronged approach sounds good.



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