Why Not 100% Stocks? – From Paper to Practice
Why Not 100% Equities (Journal of Portfolio Management, 1996): https://www.aqr.com/Insights/Perspectives/Why-Not-100-Equities
Why Not 100% Equities – From Paper to Practice (Kardinal Financial Blog Post): https://kardinalfinancial.com/blog/why-not-100-equities-from-paper-to-practice
Why Not 100% Stocks? Translating investment theory into real-world applications for ETF investors.
Join Bryan Minogue, founder of Kardinal Financial, as he breaks down the key takeaways from Cliff Asness’s 1996 article—Why Not 100% Equities?—and extends the analysis through 2024. Bryan explains how leveraging a diversified portfolio can outperform a 100% stock allocation in terms of risk-adjusted returns. He also discusses how modern ETFs make these strategies accessible to individual investors. Discover practical applications for your own financial plan and learn about the benefits of capital-efficient ETFs and risk parity investing.
Performance Comparison of 100% stocks, 60/40, and Levered 60/40 (1997-2024): https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=DeWmuA22WVcZOnpk6aeKn
00:00 Introduction
01:00 Article Summary: Why Not 100% Equities?
02:30 Extending the Data Through 2024
04:45 Real-World Applications for Individual Investors
06:00 Leveraging Diversified Portfolios
08:00 ETFs and Modern Investment Strategies
10:00 Conclusion: Influence on My Investment Strategy
Website: https://kardinalfinancial.com
Disclosure: https://kardinalfinancial.com/disclaimer
00:00 Introduction and Overview
00:51 Summary of the 1996 Article
01:54 Key Arguments and Analysis
06:46 Extending the Data to 2024
08:38 Modern Applications with ETFs
10:57 Conclusion and Final Thoughts
Website: https://kardinalfinancial.com
Disclosure: https://kardinalfinancial.com/disclaimer
Risk Parity represented by 30% Vanguard S&P 500 Index Fund (VFINX), 55% Vanguard Intermediate-Term Treasury Index Fund (VFITX), 7.5% Gold, 7.5% BTOP50 Index, rebalanced annually. Data source: PortfolioVisualizer.
BTOP50 Index: https://portal.barclayhedge.com/cgi-bin/indices/displayHfIndex.cgi?indexCat=Barclay-Investable-Benchmarks&indexName=BTOP50-Index
#investing #etf #leverage #riskparity #financialplanning #personalfinance #kardinalfinancial
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