Research

The Most Rewarding Portfolio Construction Techniques: An Unbiased Evaluation

Our research paper, published and awarded as Editor’s Pick on Seeking Alpha, analyzes and compares ten modern portfolio construction techniques by applying an advanced Monte Carlo Simulation. This enables an unbiased view of the pros and cons of each single portfolio construction technique.
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Diversification: Failure Or Free Lunch During Market Turbulence?

Our research paper, published on Seeking Alpha analyzes the stress correlation behavior of single stocks. Diversification does not eliminate systematic risk. No investment strategy does. However, a well diversified stock portfolio reduces the risk within a portfolio significantly. Even in times the market faces turbulent conditions, diversification helps to reduce draw-downs considerably. In our study we have found no proof that stocks have a higher correlation coefficient to other stocks in times they facing draw downs. In general, diversification is not just about investing money in different kind of stocks; it's about the idea of investing in low-correlated securities, able to utilize the full benefits from this well proven strategy. The basic principle is working as long as investors do understand what diversification is all about.
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The Most Diversified Inflation-Proof Retirement Portfolio

In our research paper, we introduce an effective way for conservative investors at or near retirement to allocate their capital in an inflationary market environment. The article refers to the WSC Inflation Proof Retirement ETF Model Portfolio which is regularly updated in our members area.
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Risk Parity – Why Correlations & Classifications Can Be A Huge Stumbling Block!

Our research paper, we review a hypothetical risk parity portfolio that consists of three risk balanced asset clusters (equity, commodity and fixed income), whereas within each bucket all single securities are also being weighted according to the risk parity approach.
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Modern Portfolio Theory 2.0 – The Most Diversified Portfolio

Our article reviews a portfolio construction technique called “Maximum Diversification,” which maximizes the asset class diversification within a portfolio. The article refers to the WSC All Weather Portfolio, which is regularly updated in our members area.
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