The return of risk-parity rebalancing?

According to Natixis’ Wealth Industry Survey, geopolitical issues are the main sources of concern for wealth managers. Given the increase in global uncertainty this year, it is also no surprise that over half of wealth managers view market volatility as their biggest portfolio risk, followed by inflation and interest rate worries. One way in which investors could choose to navigate these issues is through risk-parity rebalancing, a strategy which was popular until the 2010s. Why is this approach potentially applicable today? What are its advantages and disadvantages? How can it be used effectively?...