Chesser, in regards to global diversification, it is overrated.  The figures are from 2010 and increasing but check out this link, http://news.yahoo.com/going-foreign-p-500-133848480.html  This article discusses the increasing percentage of S&P 500 companies earnings coming from other c...

25% for me but I have 25% in VWINX to replace cash.  The only reason I have 25% in gold is that I can't get myself to go any further into equities yet, at last check this allocation was doing 5.8 YTD beating the S&P.  Everything is out of whack with QE, I would love to have 100 equities but am c...

That is why bonds and gold are outperforming stocks Perhaps this is true over a very , very short time frame like perhaps a week or two.  Over the past couple of years stocks have way outperformed bonds and gold ngcpa, an allocation of 50/50 long bonds and gold have outperformed the total stock ind...

The important measure is duration rather than maturity.  Higher coupon payments reduce duration, and vice versa.  One thing we don't discuss a lot is the fact that 30 year treasuries of today have a much higher duration than in the old days of higher rates.  So the sensitivity to interest rates of ...

As long as long term interest rates remain low, stocks are a good place to be. With one qualification, if interest rates remain low, it is because economic growth is not supporting stock values and that low rates are creating a bubble and we are vulnerable to a correction. That is why bonds and gol...

This is the quandry, something has to break and the bond market and stock market disagree which one will break.  My theory is that 1-2% GDP can only support equity advances for so long.  Unless the economy takes off in the next year or two, stocks will correct and bond prices will go back up, bonds ...

Very interesting, I have not read that perspective yet but it proves the government can keep rates down. With that said, stocks need to correct 50% to restore decent values which is what the government should have let happen and we may be recovered by now.  Instead they have delayed it.

Gold and bonds were blistered last year and there are enough people who do not believe in the economy to keep gold and bonds up.  Until something breaks, we are unable to restore any semi normal relationship to the markets.  Stocks need to crash 50% and stay down until a good economy supports growth...

I'm considering converting my Traditional IRA portfolio to a 2x PP (technically a 2.66x PP) using 2x ETFs, at least right now when interest rates are low: 33% SSO 33% UGL 33% UBT I won't do this in my taxable accounts.  First, I can't touch this money until I'm 59.5 without penalties so I might as ...

I am giving another hard look  at TZA for a number of reasons. First, "sell in May" is approaching rapidly. Secondly, mid-term election years are notorious for poor returns. Third, we have not had a meaningful, health-restoring correction of 10% or more for a number of years. Lastly, I be...

From a PP perspective I wonder if we are approaching a point with these broad index funds where they are so broad they don't mean anything.  The foundation of the PP is looking for opposite correlations that are volatile enough to compliment each other and also some back testing data to back it up ...

From a PP perspective I wonder if we are approaching a point with these broad index funds where they are so broad they don't mean anything.  The foundation of the PP is looking for opposite correlations that are volatile enough to compliment each other and also some back testing data to back it up h...

MWKXJ, in regards to your observations about dividends, I agree.  An investment is an expectation of a future stream of cash and holding a stock for a long time because of solid business fundamentals and value.  With that said, with only that philosophy, your are a priest amongst whores. If you have...

MWKXJ, the premise you are presenting is valid.  There are many alternative methods/philosophies/indexes that could be worthy of your capital.  The key is having a philosophy you believe in, finding the correct investment to replicate that for you and sticking to it.  The variable pp discussions are...

My fault Reub, I did not pay close enough attention, Ozzy and I are close to that but a little more aggressive with all our cash in vwinx but that would be another option.  I have some cash outside my vp version so I am being a little more aggressive since I have about 13 years to go.

Reub, without some big interest for cash it would underperform PP and be a little more volatile.  Although the worst year end was -9.84.  In the last 13 years vwinx has averaged 7.9 and pp 7.3. We need the long bonds and gold to deliver the lower volatility and add returns considering the S&P ha...

Modeljc, all projections further than anyone knows. A lot of people playing games trying to manipulate market forces.  Your view on vwinx is understood but everything will not happen in a static environment.  Bond prices of course will decline as rates rise but if you continue to hold the bonds, the...

Good comments modeljc, as always we have to add the disclaimer of the strange times we are in because of the fed market manipulation.  Due to them circumventing the marketplace from moving capital to the most efficient assets we have even less of an idea as to what may happen.  I do feel very comfor...

Well the fed openly manipulates the system so it is not too far fetched to believe that sentiment.  However, the market is willing to allow us to have 7-9% returns if we are disciplined enough to do it and I intend to take it.

In regards to VWINX, realizing of course we are speculating for conversation here.  In 40 years, the worst year end for VWINX is -9.84% in the 08 crash.  The other mitigating factor is that this fund is managed and not an index fund so the fund guidelines in the prospectus allow the managers to take...

It is possible, however for PP, gold is a hedge to remove volatility and it does that very well.  Since gold accounts for a lot of the market noise that does not fall into common sense or stock and bond talk, it is nearly impossible to say.  In the 80's it averaged -3% and -6% in the 90's but +12.3 ...

Gold is in the middle of a 12 year bull run.  it has outperformed stocks in that time frame so there is no bear market.

Robininni, it would depend on how much you are putting in and where your percentages are at the time.  For instance, if you have an asset down enough to absorb your contribution and nothing else is ready for sale or addition, then you add to that one.  The foundation of PP being to buy the asset tha...

Gold will fill in all the grey areas and then some.  It is a beautiful thing and fun to watch as long as we sleep tonight and rebalance when called for. To Bluedog's question, it is obvious that gold is a sell @ 35% but a more veteran PP question is, does it go to cash until another asset is 15%?  M...

Under the performance section with the year by year returns, they are total returns, dividends included. The charting is price only and can be deceptive.