Episode 361: Leveraged ETFs vs Margin, Transitioning To A Golden Butterfly, Investing With A Spouse, And Portfolio Reviews As Of August 16, 2024
Description
In this episode we answer emails from Chris, Andrew and Jenzo. We discuss portfolio, forms of leverage in leveraged portfolios, transitioning to a Golden Butterfly portfolio, and working with your spouse productively on your finances.
And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.
Additional links:
Father McKenna Center: Home - Father McKenna Center
Article re Margin vs. Leveraged ETFs: Margin Trading vs. Leveraged ETFs | Cumberland Advisors
Optimized Portfolios: Optimized Portfolio - Investing and Personal Finance
Leveraged ETFs Article: Double-Digit Numerics - Articles - The Big Myth about Leveraged ETFs (ddnum.com)
Warren Buffett's Alpha Article: Full article: Buffett’s Alpha (tandfonline.com)
Gottman -- "Eight Dates" Book: Eight Dates: Essential Conversations for a Lifetime of Love (gottman.com)
Amusing Unedited AI-bot Summary:
Ever wondered if using margin or leveraged ETFs is the smarter choice for your investment strategy? This week on Risk Parity Radio, we promise to shed light on this ongoing debate. As we kick off the episode, we liken our podcast to a dive bar of personal finance where humor enthusiasts and seasoned investors alike can find common ground. With a lively introduction, we announce the grand unveiling of our weekly portfolio reviews for eight sample portfolios available on our website. An email from Chris sets the stage for a deep dive into the nuances of leveraging investments using margin or box spreads, responsible leverage, and current rates, all while thanking our generous listeners for their support of the Father McKenna Center.
Are high margin rates making you reconsider your investment strategy? We dissect this dilemma by exploring the current landscape and why leveraged ETFs might just be your best bet. With a focus on ETFs like NTSX and UPRO, we suggest additional resources such as Optimized Portfolios to help you navigate your options. Inspired by listener feedback, we also touch on the concept of optimal leverage, referencing studies like "Warren Buffett's Alpha," and discuss the importance of consistent investing strategies over market timing when building a risk-parity portfolio over the next five years.
Ready for some good news? This has been an exciting week in the market, with gains across the board. From the S&P 500 to managed futures, everything is up, and our eight sample portfolios are reaping the benefits. We highlight the standout performances of newer and experimental portfolios like the Levered Golden Ratio and the Optra Portfolio. To wrap things up, Frank Vasquez delivers a spirited and humorous sign-off, reminding us to consult with personal advisors before making any financial decisions. Tune in for a rollercoaster of insights and laughs that you won't want to miss!