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. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus member. Learn More About … [Read more...]
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 could die. Or we … [Read more...]
331 Plus: Member Profile, Tail Risk Protection, Rental Real Estate as Bond Substitute, and YYY ETF
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. Become a Member If you … [Read more...]
300 Plus: Buying Tail Risk Protection, Active Management, and Trading Oil Sentiment
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) Become A Member If you would like to listen to this episode of Money For … [Read more...]
229: Stop Maximizing Your Returns Using Modern Portfolio Theory
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 portfolio … [Read more...]
196: How To Survive Financially
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. In this episode you’ll learn: Show Notes If it's Tuesday, it's a workday in Dallas for this 100-year-old Colleyville man - Dallas Morning News Skin In The Game: Hidden Asymmetries In Daily Life - Nassim Nicholas Taleb Exploring Gambles Reveals Foundational Difficulty Behind Economic Theory (and a … [Read more...]
