Why Sharpe Ratio And Other Traditional Stats Can’t Prepare You For What’s Coming
Are you thinking about interest rate risk and how it might interact with equity risk? If you are using risk models, beware, they can be lying. We can improve the accuracy of the models by using portfolio stress testing, but we first must understand where their pitfalls lie. This post has a bit of a...Read More
Fund Crash Ratings for Wellesley, Wellington and Thornburg Income
Know your funds. Detailed comparison of risk profiles of Vanguard Wellseley (VWINX), Vanguard Wellington (VWELX) and Thornburg Investment Income Builder (TIBIX) funds. Which one is more sensitive to inflation or a financial crisis? What about Fed Tapers QE scenario? The funds are put through series of stress tests and the impacts are compared. Position level...Read More
Managing Interest Rate Risk For Wealth Management Clients
Majority of the investors are waking up to the fact that fixed income portfolios are not necessarily safest given historically low interest rates and the macroeconomic outlook. The video offers a way for financial advisors to quantify interest rate risk of any portfolio using RiXtrema’s Portfolio Crash Testing tool. Once the risk is quantified, an...Read More