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You are here: Home / Archives for tail risk

499 Plus: Reducing Savings Bond Exposure, A New Tax Aware ETF, and Did a Tail Risk ETF Work

November 2, 2024 by David Stein · Updated November 14, 2024

In Plus episode 499, David shares why he reduced his exposure to Series I Savings Bonds. We briefly look at the recently announced Cambria Tax Aware ETF (TAX). Finally, we analyze the historical performance of the Cambria Tail Risk ETF (TAIL) and compare it to just having a lower allocation in stocks. … [Read more...]

Filed Under: Money Plus Tagged With: buying puts, portfolio hedges, put options, savings bonds, Series I savings bonds, TAIL, tail risk, TAX, tax efficiency

Tail Events and Tail Risk

What is tail risk and how do you protect against it? ARTICLE TABLE OF CONTENTS (Skip to Section) Tail RiskHow to Manage Tail RiskProtecting Against Stock Market LossesSelf Insurance Against Tail Risk Selling Tail Risk ProtectionReserves to Protect Against UncertaintyTail Risk Podcast Tail Risk Tail events are rare occurrences that are well outside of the norm. Tail risk is the personal harm caused by these tail events. In the worst case, tail risk can ruin us. We … [Read more...]

331 Plus: Member Profile, Tail Risk Protection, Rental Real Estate as Bond Substitute, and YYY ETF

February 13, 2021 by David Stein · Updated January 30, 2023

In Plus Episode 331, we profile a member in Bosnia who is deciding on a new asset allocation after selling a business. We consider whether investors in their thirties should seek tail risk protection against declining stock markets. We evaluate how rental real estate can be used as a bond substitute. Finally, we analyze the Amplify High Income Fund ETF (YYY) that invests in closed-end funds. We also discuss CEFL and CEFD that follow a similar strategy. … [Read more...]

Filed Under: Uncategorized Tagged With: asset allocation review, bond substitutes, bonds, closed-end funds, member portfolio review, real estate, tail risk, YYY

300 Plus: Buying Tail Risk Protection, Active Management, and Trading Oil Sentiment

May 30, 2020 by David Stein · Updated April 29, 2021

In Plus episode 300, we review the Cambria Tail Risk ETF (TAIL) to buying puts directly and consider the overall cost of a stock portfolio hedging strategy. We review the performance disparity between stocks as it relates to the pandemic and whether now is the time to shifts some assets to active management strategies. Finally, we explore a member's strategy for trading in and out of the DB Energy ETF (DBE) … [Read more...]

Filed Under: Uncategorized Tagged With: active management, DBE, hedging, TAIL, tail risk

229: Stop Maximizing Your Returns Using Modern Portfolio Theory

November 7, 2018 by David Stein · Updated May 26, 2021

Why modern portfolio theory is a defective way to build out an investment portfolio. This episode explains a better approach to asset allocation. In this episode you’ll learn: What are the inputs needed to compile an asset allocation using modern portfolio theory.What are the defects with modern portfolio theory.Why we should be minimizing our maximum regret rather than maximizing our returns.A more flexible approach to asset allocation that isn't reliant on modern … [Read more...]

Filed Under: Money Plus, Podcast Tagged With: asset allocation, asset allocation assumptions, expected returns, Hunt (Ben), investing rules, modern portfolio theory, MPT, rules of thumb, tail events, tail risk

196: How To Survive Financially

March 14, 2018 by David Stein · Updated May 27, 2021

Why relying on averages is dangerous given our fate is often determined by extreme events and how we react as financial markets, the economy and our own lives evolve. Photo by William Beem In this episode you’ll learn: How times ensures only the best ideas survive.Why we should focus on tail risk.Why are reaction to actual events as time passes is more important than the average expected outcome of multiple scenarios. Show Notes If it's Tuesday, it's a workday in … [Read more...]

Filed Under: Podcast Tagged With: Gell-Man (Murray), heuristics, Hollingsworth (Chester), Monte Carlo simulation, Peters (Ole), Pfau (Wade), tail risk, Taleb (Nassim Nicholas)

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