The RSP idea is cool.
Dumb question — what part of the post does this refer to?
One reason to keep Tractability separate from Neglectedness is to distinguish between "% of problem solved / extra dollars from anyone" and "% of problem solved / extra dollars from you".
In theory, anybody's marginal dollar is just as good as anyone else's. But by making the distinction explicit, it forces you to consider where on the marginal utility curve we actually are. If you don't track how many other dollars have already been poured into solving a problem, you might be overly optimistic about how far the next dollar will go.
I think this may be close to the reason Holden(?) originally had in mind when he included neglectedness in the framework.
Note that Vitalik Buterin has also recently started promoting related ideas: Retroactive Public Goods Funding
Which city is next?
Trendfollowing tends to perform worse in rapid drawdowns because it doesn't have time to rebalance
I wonder if it makes sense to rebalance more frequently when volatility (or trading volume) is high.
The AlphaArchitect funds are more expensive than Vanguard funds, but they're just as cheap after adjusting for factor exposure.
Do you happen to have the numbers available that you used for this calculation? Would be curious to see how you're doing the adjustment for factor exposure.
Looking at historical performance of those Alpha Architects funds (QVAL, etc), it looks like they all had big dips in March 2020 of around 25%, at the same time as the rest of the market.
And I've heard it claimed that assets in general tend to be more correlated during drawdowns.
If that's so, it seems to mitigate to some extent the value of holding uncorrelated assets, particularly in a portfolio with leverage, because it means your risk of margin call is not as low as you might otherwise think.
Have you looked into this issue of correlations during drawdowns, and do you think it changes the picture?
Ah, good point! This was not already clear to me. (Though I do remember thinking about these things a bit back when Piketty's book came out.)
I just feel like I don't know how to think about this because I understand too little finance and economics
Okay, sounds like we're pretty much in the same boat here. If anyone else is able to chime in and enlighten us, please do so!