Search found 23 matches

by WhiteElephant
Thu Jan 17, 2019 1:10 am
Forum: Bonds
Topic: Bond duration compensation
Replies: 14
Views: 1004

Re: Bond duration compensation

A 3% yield might still look appealing, but what about long-term yields <1%, like Germany? When are yields too low? 30year German bonds are yielding 0.8% currently, that’s comparable with a 2-year CD with basically zero risk. The volatility of yield changes at such a low starting point will be explos...
by WhiteElephant
Wed Jan 16, 2019 2:49 pm
Forum: Bonds
Topic: Bond duration compensation
Replies: 14
Views: 1004

Re: Bond duration compensation

Thanks for your post Kevin K. Because of concern about long term bonds, I adjusted my portfolio by lowering duration. Currently you gain very little by holding on to long-term bonds while the potential downside risk is incredible. It's probably even worse for a Eurozone PP, like mine. Maybe rates wi...
by WhiteElephant
Thu Jun 21, 2018 2:54 pm
Forum: Gold
Topic: The GOLD scream room
Replies: 2382
Views: 382772

Re: The GOLD scream room

When you start a PP you know that gold can easily go down for 10-20 years. As long as one or more other assets make up for it. PP has performed exactly as expected. It's not a portfolio to make money, it's for protecting your money. There was a lot of talk about 'solid 3-5% real returns', but I don'...
by WhiteElephant
Tue Jun 12, 2018 12:32 am
Forum: Variable Portfolio Discussion
Topic: Wellesley
Replies: 23
Views: 3911

Re: Wellesley

Good point about the possible need for simplicity when for some reason you cannot do that yourself anymore. Setting up and maintaining the PP seems very easy to me, but I know most people around me have have zero experience or interest in maintaining such a portfolio. A one-fund solution like Welles...
by WhiteElephant
Thu Jun 07, 2018 11:56 pm
Forum: Variable Portfolio Discussion
Topic: Opinions on my variable portfolios
Replies: 5
Views: 1291

Re: Opinions on my variable portfolios

Hi Jeffreyalan, what is your goal with your Variable Portfolio? Are you planning to find an allocation and stick with it?

I think it would help if you add the names of the ETF's.
by WhiteElephant
Wed Jun 06, 2018 11:31 am
Forum: Stocks
Topic: iShares europe lowers fees
Replies: 0
Views: 1240

iShares europe lowers fees

Some nice fee reductions for 4 Irish ishares etf's. The fee reduction from 0.33% to 0.12% of the iShares MSCI EMU etf is particularly interesting for Eurozone investors! http://citywire.co.uk/wealth-manager/news/blackrock-cuts-charges-on-multi-billion-etf-range/a1126023?ref=wealth_manager_all_storie...
by WhiteElephant
Wed May 30, 2018 3:03 am
Forum: Permanent Portfolio Discussion
Topic: My Permanent Portfolio Variant
Replies: 25
Views: 4317

Re: My Permanent Portfolio Variant

That's a great allocation!
Using only two funds is a nice simplified way of implementing the PP, and it's still widely diversified. The international exposure and the silver might help or not, but it likely won't make a huge difference either way.

Are you going to keep some cash on the side as well?
by WhiteElephant
Mon Apr 02, 2018 8:52 am
Forum: Permanent Portfolio Discussion
Topic: European PP, update 6 months after starting
Replies: 29
Views: 7268

Re: European PP, update 6 months after starting

Hi Juandelarocha, -0.5% and 1.8% in a year doesn't mean much and sounds to me like you're focussing too much on short-term results. Both the PP and a more conventional stock-heavy porftfolio can go nowhere for 10 years. 1 year results are meaningless. It also seems you were expecting something diffe...
by WhiteElephant
Sun Mar 18, 2018 1:55 am
Forum: Gold
Topic: Getting back to my previous gold allocation
Replies: 7
Views: 1664

Re: Getting back to my previous gold allocation

Hi technovelist,

If I may ask, what is your strategy with the other 30% of your portfolio? With 70% gold, my guess is that you don't have a lot of faith in stocks and bonds? Just curious about the portfolio allocation.
by WhiteElephant
Sat Mar 03, 2018 3:02 pm
Forum: Permanent Portfolio Discussion
Topic: Permanent Portfolio in Europe (follow-up)
Replies: 63
Views: 19748

Re: Permanent Portfolio in Europe (follow-up)

I believe the US withholding tax is 30% of the dividend yield. This happens before you pay your local taxes. Depending on the treaties between your country and the US you might be able to get some of the 30% back. Irish domiciled ETF’s only pay 15% withholding tax on US assets so that could be a bet...
by WhiteElephant
Sat Mar 03, 2018 10:38 am
Forum: Permanent Portfolio Discussion
Topic: Permanent Portfolio in Europe (follow-up)
Replies: 63
Views: 19748

Re: Permanent Portfolio in Europe (follow-up)

That seems like a very reasonable portfolio to me. Certainly ‘good enough’. One thing you have to keep in mind is that taxation of US-based etf’s can be very different from EU-based ETF’s, especially regarding withholding taxes and estate taxes. I didn’t want to worry about stuff like that so I deci...
by WhiteElephant
Tue Feb 13, 2018 2:43 pm
Forum: Permanent Portfolio Discussion
Topic: Permanent Portfolio in Europe (follow-up)
Replies: 63
Views: 19748

Re: Permanent Portfolio in Europe (follow-up)

My online savings account still has a positive yield: 0.35%.
All short-term euro treasuries have negative yields. The iShares 0-1y euro etf for example has a YTM of -0.5%.

So that’s a difference of almost 1 percent.