Episode Details

Episode 263: A Common Modeling Mistake, Low Beta Funds, And Fun With Finland

Season 3 Episode 263 Published 2 years, 7 months ago

In this episode we answer emails from R.J., Mark and Jaako. We discuss how amateur investors doing projections often double-count inflation accidently and apply inappropriate tax rates, using low-beta funds in portfolio construction, and ETFs designed to combat inflation in Finland and elsewhere.

Note I misspoke and the USMV low-beta portfolio does better than the two created in Mark's backtests.

Links:

Value Stock Geek's Podcast Interview of Tyler from Portfolio Charts: Tyler (@PortfolioCharts): The Amazing Power of Uncorrelated Assets (securityanalysis.org)

Portfolio Visualizer Monte Carlo Simulator: Monte Carlo Simulation (portfoliovisualizer.com)

Rational Reminder Interview of Professor Campbell: Prof. John Y. Campbell: Financial Decisions for Long-term Investors | Rational Reminder 250 - YouTube

Analysis of Low Beta Portfolios: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Mark's Correlation Analysis: Asset Correlations (portfoliovisualizer.com)

Fund Page for Jaako's Fund: Lyxor EUR 2-10Y Inflation Expectations UCITS ETF - Acc | LYX0U6 | LU1390062245 (justetf.com)