Would it not be easier to convert some portion of the LTT into STT?  Or possibly just forego the barbell and buy intermediate bonds?  I realize this voids the warranty on the PP, but if someone is not willing to jump into the PP because of LTT, then I'd adjust things so that they are somewhat comfo...

SmithBrook, It's not a horrible idea, but what are the costs to short?  You forgo dividend and interest payments, and pay a higher MER if you go with an ETF.  Am I correct to assume that the cost to short is at least 3% a year (2% dividend/interest and 1% MER)?  That's a lot of decay... Have you tr...

My overriding goal is to protect the purchasing power of the capital that is precious to me.  Growth is a secondary objective.  I accept that the future is uncertain and unpredictable and that I do not have a crystal ball.  I’m not seeking to express a directional view on rates or on equities.  I am...

Rickb – Yes, you have reframed my question perfectly and I appreciate the link to the other discussion on rates.  I did not turn that one up in my previous search. I agree with your general assessment of the possible conditions, potential asset performance and risks.  There are ways to mitigate some...

If LTT rates were literally 0%, I would replace that portion with cash; at that point, what's the difference? But if that ever happened, anyone still holding a 30-year bonds, even ones at very low rates, would see ridiculous explosion in the value of their still-terrible-but not-as-bad-as-0% bonds....

Stocks have more than doubled in the last 4.5 years. Not too shabby! Someone who shorted stocks anytime in the last few years would have gotten crushed. What I would ask to anyone preparing to do so now is, what makes you think this trend is going to immediately reverse? In fairness, I don’t think ...

I understand the basis of your proposed strategy, but it seems highly speculative to me. The most common response to the PP from new followers is basically "Well, I'm pretty sure that's about to stop working because of X", and yet somehow "X" never actually stops the PP from wor...

You could get crushed if equities continue to run on a tear, Bernanke keeps rates low (QE4?), and gold drops because people flood into equities. Is this scenario that far fetched? I am not explicitly betting on it (I have the vanilla PP) but it seems perfectly in the realms of possibility. Whenever...

I came across HB about 6 months ago and have been drawn to the PP strategy for its simplicity and agnosticism to future events.  I struggle, however, with implementing the PP as prescribed in the present conditions, mainly because I do not see the potential for LTT to provide the same asymmetry to t...