Random Roger's Retirement Planning

AUGUST 1, 2024

We regularly look at capital efficiency and its potential uses in portfolio construction. Consider the following two portfolios. In terms of risk weighting or volatility weighting, a smaller allocation to semiconductors could deliver the same benefit to a portfolio as a larger weighting to broad tech.

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Random Roger's Retirement Planning

JUNE 22, 2023

And then just a little math, the "guarantee" based on the 50/50 allocation would be 2.5% Down less clearly worked in 2022 and YTD HEQT is lagging the S&P 500 by 400 basis points. Portfolio 3 with 65% HEQT and 35% SPHB was down quite a bit less than the S&P 500 last year and the standard deviation is noticeably lower too.

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Random Roger's Retirement Planning

JUNE 10, 2024

We've talked just a couple of times about the market becoming increasingly concentrated which just in terms of math means that a diversified strategy will lag for as long as the big names do well. Despite outperforming for 15 years, PSLDX was down 43% in 2022 which speaks to what diversification is about. In 2022 they didn't work.

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Random Roger's Retirement Planning

SEPTEMBER 29, 2024

Risk parity portfolios are particularly vulnerable when their active weighting algorithms fail to predict shifts in asset correlations." The authors noted that risk parity did very well for a long time but that "bond based risk-parity failed miserably in 2022." The leverage is usually obtained by using treasury futures.

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Random Roger's Retirement Planning

APRIL 12, 2023

The Wall Street Journal had an article about the standard 60/40 portfolio , that is 60% allocated to stocks and 40% allocated to fixed income. My experience is that the typical retired person/couple expects growth in exchange for some volatility from the equity portion of their portfolio, they don't want it from their fixed income sleeve.

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Brown Advisory

JUNE 16, 2022

Global Leaders Investment Letter: June 2022 mhannan Thu, 06/16/2022 - 11:30 Just want the PDF? We discount each year at our 10% minimum weighted average cost of capital (WACC) and some infinite series maths gives us the basis for some rough approximations 2.

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The Big Picture

NOVEMBER 14, 2023

She has a really fascinating background, very eclectic, a combination of math and law. You, you get a, a BS in Mathematics and a JD from Boston University Math and Law. It is something, math has always come easy to me since a child. I didn’t get an advanced degree in math. Not the usual combination. What happened?

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Integrity Financial Planning

JANUARY 23, 2023

In fact, as of September 2022, over 70 million Americans were collecting benefits. [1] You might have a generic 60/40 portfolio that you expected to cover the rest of your income needs but that possibly needs updating after recent market activity. 3] So, it’s easy math: the less you work, the less you’ll earn.

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Random Roger's Retirement Planning

JULY 27, 2022

In my ongoing quest to redefine portfolio construction, I've mentioned labeling asset classes based on their attributes versus just their proper names like growth which could include more than just equities or inflation protected which could include more than just TIPS and so on. We talk frequently about portfolios being relatively simple.

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Random Roger's Retirement Planning

DECEMBER 10, 2023

A little more specifically the need for diversified portfolios persists with the implication that bonds are the way to get this done. This chart contributes to the logic supporting a 60/40 portfolio. As a matter of math, it cannot repeat the run from 8.5% Portfolio 2 above has 65% in growth. in November.

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Random Roger's Retirement Planning

MARCH 20, 2023

The way the math works, a 67% allocation to NTSX (Portfolio 2 with 33% in the T-bill ETF) equals 100% in Vanguard Balanced Index Fund (VBAIX) which is a proxy for 60/40 and Portfolio 3. Portfolio 1 is 100% in NTSX which in 2022 was down 25.84% versus down 16.85% for Portfolio 2 and 16.87% for Portfolio 3.

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Random Roger's Retirement Planning

FEBRUARY 24, 2024

That is correct, technically but whatever you're looking for from REITs, or private equity or any of the others, you're not going to see it impact the portfolio as part of an index fund. Mistakes during those types of events are what managing portfolios is all about.

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Steve Sanduski

AUGUST 4, 2022

Charles Schwab just released their 2022 RIA Benchmarking Study and I decided to crunch the numbers and see what the data shows. With a traditional 60/40 allocation, this portfolio would have grown about 75.5% For comparison, a passive 60/40 bond portfolio, as mentioned above, grew at a CAGR of 11.9%. AUM Growth.

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Validea

JUNE 14, 2023

The Math Behind the Growth Let’s take a step back and think about what it would take for a company like Apple to reach a $10 trillion market cap. trillion, and by the end of 2022, it had soared to $40.5 A well-diversified portfolio can help protect against the unpredictable nature of the stock market.

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Random Roger's Retirement Planning

FEBRUARY 8, 2023

Here are some other numbers compared to the S&P 500 and VBAIX which is a proxy for a 60/40 portfolio. The way the math works, a 67% allocation to NTSX replicates 100% into a 60/40 portfolio which leaves 33% left over to do something. In 2022, VBAIX was down 16.87% while Portfolio 2 was only down 10.77%.

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Investing Caffeine

FEBRUARY 1, 2022

After this meteoric multi-year rise, stock values started to come back to earth in 2022, and the rocket ship turned into a roller coaster during January. Math Matters. I did okay in school and was educated on many different topics, including the basic principle that math matters. Source: Calafia Beach Pundit. www.Sidoxia.com.

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Random Roger's Retirement Planning

JULY 14, 2022

Here's how QYLD has done for the last 5 years coming into 2022, so before the market was underway, versus the NASDAQ. And here is 2022, the bear market. Similar to PUTW, it didn't offer protection during the pandemic crash of 2020 but only dropping half of what the S&P 500 index has dropped in 2022 is impressive and surprises me.

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Sara Grillo

MAY 16, 2022

From the company’s website, as of May 16th, 2022: Single people. From the company’s ADV Part 2 brochure, as of May 16th, 2022: Fees are set as a fixed annual fee, paid quarterly, and based approximately on the total time required to service an account yearly. But, let’s say you had a much smaller portfolio.

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Trade Brains

DECEMBER 16, 2022

And when used for ROE, as per the basic rule of math, if the denominator decreases, the fraction as whole increases i.e, On a yearly basis, from 2018 to 2022, the company has a return on equity of 36.56%, 45.3%, 70.39%, 105.76%, and 104.53% respectively. The ROE numbers from 2018 to 2022 are 57.17%, 49.79%, 42.74%, 71.64%, and 83.3%

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Random Roger's Retirement Planning

OCTOBER 29, 2023

This year, its performance has it the top 1% of mutual funds but in “2021 and 2022 it was ranked in the bottom 100th percentile.” Here I am talking not just portfolio management but overall lifestyle, habits and choices and yes this does filter into my day job managing investment portfolios. So it is today with bonds.

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Brown Advisory

JANUARY 17, 2024

One of our colleagues, Ken Stuzin, likens portfolio construction to Darwinian Investing – it is about survival of the fittest. In a concentrated portfolio, it is the losers that kill you. What sort of hit rate should we then expect within their portfolio? 5 As Table 2 below highlights, this team appears to be seriously good!

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The Big Picture

SEPTEMBER 19, 2023

Her job is portfolio and product solutions and that means she could go anywhere in the world and do anything. One, one is true and I’ve always said is that I wanted people to stop, ask if I could doing math. And no one asked me if I can do math anymore with a degree from Booth, particularly in econometrics and statistics.

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The Better Letter

DECEMBER 15, 2022

Those of us called upon professionally to write about market performance in 2022 as the year ends are necessarily struggling for the right verbiage. That’s because, in language as plain as I can make it, pretty much every market and sector has had a very bad 2022. The Bloomberg U.S. Things are no better overseas.

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Darrow Wealth Management

MAY 22, 2023

In fact, the Federal Reserve has raised the upper limit federal funds rate by 5% since the beginning of 2022. Again just using simple math, this presumes the par value will roll over each month and reinvest at the same rate to get to the annual yield. Hold cash or invest? Interest rates have skyrocketed since the end of 2021.

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The Big Picture

MAY 9, 2023

So I took it upon myself to go off and took a course in bond math, took another course in derivatives and realized the underlying fundamental concepts were barely, I mean, it wasn’t even high school math in most cases. I didn’t know what any of these terms meant. And there was a problem with 168 of them at the end of 2008.

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The Big Picture

FEBRUARY 6, 2024

If you’re at all interested in focused portfolios, the concept of quality as a sub-sector under value and just how you build a portfolio and a track record, that’s tough to beat. Dick Mayo was a traditional, I’d say portfolio, strong portfolio manager focused on US stocks. So I was at Harvard.

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Random Roger's Retirement Planning

NOVEMBER 19, 2023

I was little concern during 2022 with high inflation with the market downturn. If the 4% treasury portfolio pays out $50,000 today, it will pay the same $50,000 in 2038 with no growth in account value. Part of the math that determines options premiums is the risk free rate of return from T-bills.

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David Nelson

NOVEMBER 27, 2023

Do the math S&P 500 Top Performers Bloomberg Data 25% of the S&P 500 is up more than the index this year. Constructing a portfolio that keeps you in the game is better than not playing the game at all. As we closed out 2022 a lot of this year’s winners were for sale. 60% of the index is positive year to date.

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Random Roger's Retirement Planning

DECEMBER 1, 2023

Part of the math that determines options premiums is the risk free rate of return from T-bills. We've also looked at countless ways to incorporate a small allocation to covered calls funds to help reduce portfolio volatility, so using them as alts in a matter of speaking. In 2022 it dropped 13% versus about 19% for the S&P 500.

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Math Retirement Numbers Portfolio 74

Validea

JUNE 14, 2023

The Math Behind the Growth Let’s take a step back and think about what it would take for a company like Apple to reach a $10 trillion market cap. trillion, and by the end of 2022, it had soared to $40.5 A well-diversified portfolio can help protect against the unpredictable nature of the stock market.

Math 52

Math Accounting Investing Investments 52

Brown Advisory

NOVEMBER 13, 2023

The New Normal It is difficult for investors and individuals alike not to have been directly impacted by the rapid rise in inflation in 2021 and 2022, the succeeding interest rate hikes by global central banks and the ensuing effects these economic events have had on financial markets, including the mortgage market. will require 4.3

Investing 52

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The Big Picture

AUGUST 29, 2023

So I came down, met with our head of the portfolio review department, which oversees our external managers, met with our head of brokerage, and then met with the head of bind indexing, who was Ken Volpert at the time. And she was like, “You should come down and talk to some people at Vanguard.”

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The Big Picture

SEPTEMBER 3, 2024

All of their portfolio managers not only are substantial investors in each of their funds, but they do a disclosure year that shows each manager by name and how much money they have invested in their own fund. So we really think that it creates alignment to have our portfolio managers meaningfully owning shares of the funds that they manage.

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The Big Picture

OCTOBER 21, 2024

As an example, institutional investors mentioned King Street in 2022, perhaps the worst year for hedge funds since oh 8 0 9. I’m good at math and science and you know, I always had an idea what go into business, but I felt that electrical engineering would be a good foundation. They were down 3.8%. Their benchmarks were down.

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The Big Picture

SEPTEMBER 12, 2022

I — I loved math, but really, I was going to go down that literature route more than anything else and — and study Spanish literature. I — I — I think 50 plus 75 plus 75 plus whatever happened September 2022, that’s the end of the soft landing. RITHOLTZ: Applied Mathematics, Quants, those guys, yeah.

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The Big Picture

FEBRUARY 13, 2023

But you know exactly how they’re going to interplay within a portfolio, hugely powerful. You know, it’s not the equity market, and I run some big equity portfolios, you know, different. But, you know, it’s been in a portfolio for a long time. Last year, it’s in our tactical portfolios.

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The Better Letter

DECEMBER 30, 2022

We checked the maps, did the math, and determined that, if all went well, we could drive from BWI to San Diego in about 40 hours of driving time. Nobody’s financial plan had a good 2022. Safer investment portfolio options – such as bonds or guaranteed income – matter more in a crisis, too. We wanted to go!

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