Episode 263: A Common Modeling Mistake, Low Beta Funds, And Fun With Finland
OwenJay👑
Description
<p>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.<br/><br/>Note I misspoke and the USMV low-beta portfolio does better than the two created in Mark's backtests.<br/><br/>Links:<br/><br/>Value Stock Geek's Podcast Interview of Tyler from Portfolio Charts: <a href='https://www.securityanalysis.org/p/tyler-portfoliocharts-the-amazing#details'>Tyler (@PortfolioCharts): The Amazing Power of Uncorrelated Assets (securityanalysis.org)</a><br/><br/>Portfolio Visualizer Monte Carlo Simulator: <a href='https://www.portfoliovisualizer.com/monte-carlo-simulation'>Monte Carlo Simulation (portfoliovisualizer.com)</a><br/><br/>Rational Reminder Interview of Professor Campbell: <a href='https://www.youtube.com/watch?v=PhQAV1vzuAU'>Prof. John Y. Campbell: Financial Decisions for Long-term Investors | Rational Reminder 250 - YouTube</a><br/><br/>Analysis of Low Beta Portfolios: <a href='https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=true&portfolioName1=70%2F30+%2810%25+Cash%29&portfolioName2=80%2F20+w%2F+Low+Beta+Tilt&portfolioName3=USMV+Version&symbol1=VTSMX&allocation1_1=70&allocation1_2=50&allocation1_3=50&symbol2=XLP&allocation2_2=30&symbol3=
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Episode 263: A Common Modeling Mistake, Low Beta Funds, And Fun With Finland
OwenJay👑