I got lucky on timing and bought into... TMF (+43%) UPRO (+31%) UGLD (-9%) ...back in Feb. I am up about 20% as a group. Looking forward to an equally exciting reverse at some point. My PP is a mix of 1x, 2x  and these 3x funds (sorry for the leverage Harry) so far I am up 15% for the year :-0. And ...

I am having the same thoughts but in my case selling some DGP (2x) and replacing with GLD. I think I am pretty safe from this being considered a wash.

phil

http://www.wimp.com/goldbullion/

just for the entertainment of looking at A LOT of gold

phil

TD does not provide a selling option. They must first be transfered to a broker is what I m concluding.

Also it does not update your current value. It only lists face value (not very helpful for tracking net worth)

phil

Thanks Gumby I read something about having to hold bonds more than 12 months before redemption but it makes sense that it would be at maturity otherwise why would you need to withdraw them to a broker otherwise. Like most things I do. I will buy some more and force myself to adapt and learn the best...

Good idea MediumTex I must admit having some remorse about getting involved with the Treasury Direct account. I had not fully understood what it was ie. A place that only sells treasuries (not a place that trades treasuries). Having bought some long bonds I am now unsure how I sell them (5 - 10 year...

Thanks for the info. One more question.

What is the best way to calculate current value of your TD bonds for a monthly re balancing check etc. TLT is easy of course.

phil

Excuse all the replies to self, but I guess others might be as stupid as me :-) and find this helpful. http://www.treasurydirect.gov/RI/OFNtebnd So I think I am getting it. If you buy at the initial auction you will pay a price that is very close to the face value but could still be slightly higher ...

ok learning a bit more... http://www.treasurydirect.gov/indiv/research/indepth/tbonds/res_tbond_rates.htm -------------------------------------------------- Auction Pattern 30-Year Bond Original Issues—February, May, August, November Reopenings—January, March, April, June, July, September, October, ...

I used the 'Purchase Express' link to buy them. I am guessing that I did not buy them at the auction but bought them after there value had risen post auction or something like that. So should I be using the 'Buy Direct' tab and then choosing the '30-Year' bond at a future auction date? Or do you jus...

Hi All

I decided to open account at Treasury Direct and made my first purchase of $3500 worth of Treasury Bonds. My TD account now shows I have $3500 in Bonds but my bank shows $3801.92 was withdrawn by TD and not $3500

What am I missing?

Confused...phil

I only casually check volatility by looking at the results each day on yahoo and yes they are typically 2X as you would expect.

I am sure it will be have problems long term but still have a little money on it for fun.

phil

In its simplest form, a leveraged version of the PP could be acquired using an account that allows leverage - a margin account. The gains would be eroded because of the interest you would pay on the borrowed money. The leveraged etfs have similar problems to over come.

phil

All very interesting Clive. now I have a reason for a VP...even more PP :-)

Thanks Clive. So using the leveraged funds really are a good (temporary) solution to create a PP like allocation even if most of your money is stuck in a 401k etc with limited choices. Even HB suggested using similar ideas in '...Best Laid Plans...." at the time he suggested using gold options ...

Clive wrote:
12.5% UGL (2X gold)
8.33% UPRO (3X stocks)
12.5% UBT (2X LTT)
the rest in cash (SHY)

is +8.9% year to date

Thats not too bad for a temporary solution and very impressive if you said you got 8.9 % with more than 60% in cash :-)

phil

Yes, I always though most of the gains would come from the re-balancing.

I mentioned in a new thread about the possible use of leveraged etfs to 'temporarily' help get a PP like balance when funds are limited outside 401k's etc. This again may (or may not) be better than sticking with the poor choices inside your 401k. either way you should strive to build the real thing...

I know this goes against many/every aspect of the permanent portfolio and in no way is this a suggested way to run your allocation but just for fun I was looking at the ETF's that claim to double the performance of any particular asset eg 2x the S&P 500. I created a tracking portfolio in yahoo u...

I am still well leveraged and will stay with the rentals for now just to see how things work out. I am underwater to some degree but with positive cash flow so going to let it tick away as is. I may also sell down the road to remove it from my assets.

phil

HB did talk about owning a business and how it relates to PP as well but I don't have time to look it up right now. As to why bonds and mortgages cancel each other out...Well he said it puts you at risk to deflation while biasing too much toward inflation protection. Deflation and falling interest r...

Thanks Drew I would like to be 100% in the PP. To be 100% invested in the PP I would need to sell the rental property. I don't want to do that...yet, but I still want to aim for the closest there is to 100% split per PP. My aim was to work out which of the four I should cut back on and which I shoul...

Ha yes I know what you mean. I re-read HB's section on Real estate in 'Why the Best....go wrong' The main points were. 1. Real Estate has no place in the PP - get rid of it. 2. A mortgage is negating the bond portion as it is opposite. 3. Do something to try and balance things. 4. Real Estate with a...

Hi All I have been a happy PPer for  two years but I have not quite worked out how to think about a rental property in this mix. HB has written about it somewhat and has suggested reducing the amount of gold if you have a disproportionate amount of net worth in property...I think (must check Best la...

I really like Folio Investing and would recommend people go take a look to see if it suits them. For the PP it seems there is no clear winner between keeping it balanced or letting it go to the 35% band or anything in between. Less is more generally. I would not have a problem using Folio Investing'...