ReSolve's Riffs on Navigating an Impossible Market with Chris Schindler

Chris Schindler
Impossible Market - hard to find the returns you will need over long run
CIO's Challenge
The 60/40 portoflio is really just a delevered equity portfolio
Stock/Bond Risk Parity = equal risk, so 20 Equities/80 Bonds, something like that
Stock/Bond/Commodity - balanced between growth and inflation
Chris Factor Balance - what portfolio do I want in 10 years?
Ok so why not invest in risk parity stocks, equities, commodities? The track record is amazing, 9% return 25 max drawdown
It’s much easier to come to portfolio construction from the risk, and then leveraging, versus focusing not he return

Ok so how much leverage to Risk Parity to get the return you need, 5% return real
Just because yields are low, doesn’t mean bond risk premiums are low
If you could turn straw into gold
Increased crowded means increased correlations!
Small teams better
Capacity just means at some point transaction costs eat into alpha
Execution is extremely important for everyone
Takeaways: