Episode 17 starts with the guys from ReSolve discussing how they view asset allocation and top-down investing. They start with the global market portfolio which is the aggregate of what every investor in the world owns, yet interestingly, nearly no individual investor allocates this way. They then adjust the global market portfolio by striving for balance, specifically, risk parity. They discuss how leverage enables an investor to scale risk and target a specific volatility level, therein equalizing the portfolio. Risk parity gets you to start thinking about risk allocation instead of capital allocation. And this is helpful as “you’ve always got something killing it in your portfolio…and always got something killing you.” The topic then moves to valuation. The guys from ReSolve tell us how they see today’s market—near the peak of a cycle and expensive relative to history. What does this mean for returns over the next 10-20 years? They think 1-2% real. This leads to a discussion about the Permanent Portfolio and its pros and cons in various markets. Then Meb doesn’t miss the chance to bring up gold, as he suggests Canadians love their natural resources (ReSolve is based in Canada). Next, Meb asks the guys their thoughts on currencies. Here in the U.S., it’s rare that we factor currencies into our investing decisions, but it can be more of an issue for many non-U.S. investors. The conversation circles back to risk parity, this time in the context of bonds, and where yields might be going over the next 5-10 years. There’s plenty more, including managed futures, assorted risk premia, and an announcement from the ReSolve guys about a new service offering. What is it? Listen to episode #17 to find out.
In episode 290, we welcome our guest, Bill Smead, the Chief Investment Officer for Smead Capital Management. In today’s episode, Bill explains why he believes the market is undergoing a …
Episode 289 is a Mebisode. In this episode, you’ll hear Meb put today's stock valuations into historical perspective. He addresses the claim that …
In episode 288, we welcome our guest, Doug Pugliese, the Head of 1042 QRP Solutions at Alpha Architect, where he manages the firm’s qualified …
In episode 287, we welcome our guest, Jonathan Hsu, the co-founder and General Partner at Tribe Capital, a venture capital firm focused on using product and data science to engineer N-of-1 …
In episode 286, we welcome our guest, Jeremy Grantham, co-founder and Chief Investment Strategist of GMO.
In today’s episode, Jeremy begins by talking about the current market, which he …
In episode 285, we welcome our guest David Marcus, the co-founder and Chief Investment Officer of Evermore Global Advisors, where he manages the Evermore Global Value Fund. In today’s …
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