20 Comments
Apr 9, 2022·edited Apr 9, 2022

Hi!! In this article (in spanish) they justify that is better to have equities not hedged and bonds hedged. Why do you use this strategy?

Thanks

https://blog.indexacapital.com/2017/09/11/fondos-con-sin-cobertura-divisa/

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Ciao Alfonso,

Any thoughts on portfolio rebalancing and frequency? Do you trim your tactical portfolio and transfer your profits into your long-term strategic asset allocation portfolio? If so, aren't you jeopardizing the beauties of compounding if you happened to be successful trading 10% of your capital? If not, how would you handle the eventual over/underexposure?

Grazie!

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Thanks Alfonos, You trade 1+ months. You get the Volatility on these time frames? hence the probability is there to make money?

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Hi Alf, Thanks for what you are doing here. I have not long been investing in a personal pension and you have given me some food for thought and helped me look at it differently. Can i ask what is your time horizon for your long term investment? The 70/20/10 portfolio. Would you use the same stretegy over 15 years or so?

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Dec 30, 2021·edited Dec 30, 2021

Thank you for sharing this information for free, Alf! You have a very unique educational yet enjoyable writing style.

I have a question regarding the long-term portfolio. With the high probability of rising real yields decreasing stock market valuations, declining economic growth and ever-rising threat of deleveraging à la Japan you outlined in your other work, do you think it makes sense for an average person not yet invested in the stock market to wait in cash (and say bonds + gold) and to postpone their investment? It does not seem smart to invest now at ATHs given this analysis.

Thank you again!

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Is it possible to become wealthy as an Italian citizen living in Italy? The tax rates are quite high

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Hi Alfonso! I want to congratulate you on the articles, they are a great source of insight! I have a question on the long-term structural portfolio: do you invest regular amounts each month/period into it (dollar-cost averaging) or pursue a different approach? If you allocate funds regularly to it, then my follow-up question is: how do you proceed in these times in which in article #5 you say it would be best to go fishing?

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Hi Alfonso, thanks for your article. I look forward to seeing more.

I had one thought on your strategic allocation. Did you think about running the equity exposure unhedged, and the bond exposure hedged?

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Hi Alfonso! Fantastic series of articles, with a truly generous content! Thank you, I will start to share them ASAP, tomorrow the latest.

Concerning your passive allocation, I was wondering, why wouldn't you go with a risk parity portfolio or at least a portoflio that has more parity in terms of risk among the asset classes? Taking your example, I would go more like: 25% equities, 15% gold, 40% US Treasuries, 20% Commodities.

Sure, the expected return may be a bit lower, but wouldn't diversification help to boost the Sharpe ratio a bit, thus allowing for little of leverage for an investor liking more risk?

Grazie e saluti dalla Svezia! :-)

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solid summary and appreciate thought process. one comment…surely the 8% return from 70/20/10 portfolio will be difficult to replicate in next 5,10,15yrs, no? given asset valuations would seem the buy/hold portfolio locks you into low single digit returns. why not allocate more to global macro portfolio to out earn low single digits? move to 65% long term portfolio, 35% macro/tactical. i suppose it depends on what your expected return is on macro/tactical sleeve…but i’d guess return is as high or higher than long term portfolio right now.

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Hi Alfonso, what an interesting article! I would be very interested to hear what could be according to you a "way out" to avoid the "financial destruction" you mentioned above.

Also, if we are heading to a "financial destruction" what would happen to a long term portfolio? Is this the end of the 70/30?

My compliments again for this newsletter, and for your style clear and structured at the same time. Well done. Ciao, Adriano.

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