This episode breaks down risk parity, a portfolio construction method that allocates based on risk contribution rather than capital weight. Retail investors often default to traditional 60/40 or market‑cap‑weighted portfolios, but risk parity offers a more balanced, volatility‑aware framework designed to perform across different market regimes.

Listeners will learn how risk parity works, why it differs from conventional allocation, and how it can help build more resilient, diversified portfolios—even without institutional‑level tools.

📌 Key Topics Covered

• What Risk Parity Actually Means Understanding the shift from capital allocation to risk allocation and why it matters.
• Why Traditional Po ...