I was quite flattered this week to be named as one of Investopedia's Top 100 Financial Advisors*.
Which is a bit odd, given that I'm not a financial advisor... but I'll take the wins when I get them!
This week, Nathan explores using leveraged ETFs to allow growth-focused investors to still pursue the potential diversification benefits of bonds.
By combining leveraged equity and bond ETFs, an investor can tap into a potentially diversifying risk premium without necessarily suffering the inherent portfolio risk reduction that often arises when an investor sells equities to buy bonds.
The devil, as per usual, is in the details. In this case, the simple question of when to rebalance the mixture proves to have a large impact. The good news is that trivial rebalance rules appear to allow investors to tap into the potential benefits with minimal effort.
Check it out! (PDF)
🎧 LISTEN: Flirting with Models – Jason Thomson – The Growth Factor (S2E6)
Read of the Week
→ RESPONSE FUNCTION: Pursuing position sizing functions to maximize both the skewness and Sharpe ratio of momentum and trend strategies. Risk and Reward in Momentum Trading
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*Methodology: Investopedia's proprietary methodology focuses on awarding financial advisors who have demonstrated a top-of-the-industry ability to reach the largest and most relevant financial and investing audience, as measured by the impact and quality of their published work, public appearances, and online following. The 2019 Investopedia 100 also heavily weighed peer-to-peer nominations, highlighting the most influential advisors who were recommended by their peers.
Newfound Research has not paid or received any compensation relating to Corey's placement on the Investopedia list. Corey's inclusion on the Investopedia list does not constitute an individual endorsement by Investopedia. Neither Newfound nor Corey nominated Corey for inclusion on the Investopedia list.