Episode 27: What About Utilities As An Allocation In A Risk-Parity Style Portfolio?

<p>In this episode, which is a follow-up to Episode 25, we analyze as an investment in utilities for a risk-parity style portfolio using David Stein&apos;s 10 Questions to Master Investing, which are:<br/><br/>1.  What is it?<br/>2.  Is it an investment, a speculation, or a gamble?<br/>3.  What is the upside?<br/>4.  What is the downside?<br/>5.  Who is on the other side of the trade?<br/>6.  What is the investment vehicle?<br/>7.  What does it take to be successful?<br/>8.  Who is getting a cut?<br/>9.  How does it impact your portfolio?<br/>10.  Should you invest?<br/><br/>Links and References:<br/><br/>Optimal Finance Daily Podcast Episode 1329:  https://oldpodcast.com/1329-is-value-investing-dead-by-vitaliy-katsenelson-of-contrarian-edge-on-growth-stocks-fang/<br/><br/>Fi-Lexible Webinar (scheduled for Nov 1, 2020):   https://www.eventbrite.com/e/free-webinar-are-you-fi-lexible-tickets-125036815481<br/><br/>Episode 7 re the Three Principles:   https://www.riskparityradio.com/podcast/episode/4ec882cb/episode-7-how-to-construct-a-risk-parity-style-portfolio-from-basic-principles<br/><br/>Correlation Matrix for Utility ETFs:  https://www.portfoliovisualizer.com/asset-correlations?s=y&amp;symbols=VTSAX%2C+TLT%2C+GLD%2C+VNQ%2C+XLU%2C+VPU%2C+FUTY%2C+IDU&amp;timePeriod=2&amp;tradingDays=60&amp;months=36<br/><br/>Portfolio Visualizer Backtest of Portfolios with REITs and Utilities:  https://www.portfoliovisualizer.com/backtest-portfolio?s=y&amp;timePeriod=2&amp;startYear=1985&amp;firstMonth=1&amp;endYear=2020&amp;lastMonth=12&amp;calendarAligned=true&amp;includeYTD=false&amp;initialAmount=10000&amp;annualOperation=0&amp;annualAdjustment=0&amp;inflationAdjusted=true&amp;annualPercentage=0.0&amp;frequency=4&amp;rebalanceType=1&amp;absoluteDeviation=5.0&amp;relativeDeviation=25.0&amp;showYield=false&amp;reinvestDividends=true&amp;portfolioNames=false&amp;portfolioName1=Portfolio+1&amp;portfolioName2=Portfolio+2&amp;portfolioName3=Portfolio+3&amp;symbol1=VTI&amp;allocation1_1=42&amp;allocation1_2=42&amp;allocation1_3=42&