Search found 218 matches

by Pet Hog
Sat Jun 14, 2014 3:32 pm
Forum: Permanent Portfolio Discussion
Topic: How should contributions/withdrawals be treated for rebalancing?
Replies: 7
Views: 2506

Re: How should contributions/withdrawals be treated for rebalancing?

I'll assume that 10k/11k/8k/7k refers to cash, stocks, bonds, and gold, respectively (total: $36k; 28/31/22/19%).  For any contribution, I can think of six strategies: (1) Add all to cash. Pros: simplicity, no fees (maybe one buy of short-term bonds or ETF), no taxes. Cons: distorting portfolio perc...
by Pet Hog
Fri Jun 06, 2014 5:16 am
Forum: Cash
Topic: best etf for cash?
Replies: 18
Views: 13340

Re: best etf for cash?

SHV: yield, 0.00%; expense ratio, 0.12% BIL: yield, 0.00%; expense ratio, 0.14% SHY: yield 0.32%; expense ratio, 0.15% (numbers from marketwatch.com) Is it really worth the effort to buy any of these ETFs right now?  To make 0.17%, at best, annually?  That's a whopping $17 a year on a $10,000 invest...
by Pet Hog
Fri May 30, 2014 8:33 pm
Forum: Permanent Portfolio Discussion
Topic: Does a rebalance bonus exist?
Replies: 11
Views: 4011

Re: Does a rebalance bonus exist?

AdamA wrote: Keep in mind that, bonus or not, rebalancing greatly decreases portfolio volatility.

Craig wrote about this a while back, I think.
One of the main attractions of the Permanent Portfolio!
by Pet Hog
Fri May 30, 2014 8:29 pm
Forum: Permanent Portfolio Discussion
Topic: Does a rebalance bonus exist?
Replies: 11
Views: 4011

Re: Does a rebalance bonus exist?

TennPaGa wrote: Cool, Pet Hog!  Thanks for running the numbers.

Just so I'm clear, was each back test from January 1 in year X through... today?
That is correct.  Until today: May 30, 2013.  I should edit the charts and upload them again.  Thanks for spotting that!
by Pet Hog
Fri May 30, 2014 8:20 pm
Forum: Permanent Portfolio Discussion
Topic: Does a rebalance bonus exist?
Replies: 11
Views: 4011

Re: Does a rebalance bonus exist?

Thanks for the analysis. Is it possible to breakout by holding, e.g. Equities to Gold resulted in a re-balancing gain or Gold to LTT's, etc.? I am sure it would be possible, but a bit tedious.  Taking the 1972 example, there have been 15 rebalances over 42 years — how easy would it be to decide one...
by Pet Hog
Fri May 30, 2014 4:38 pm
Forum: Permanent Portfolio Discussion
Topic: Does a rebalance bonus exist?
Replies: 11
Views: 4011

Does a rebalance bonus exist?

Inspired by a debate on another thread, I decided to sacrifice my afternoon and run the numbers from Peak2Trough's site to see if there is such a thing as a rebalance bonus in the PP with 35/15 rebalance bands.  Starting on January 1 of each year since 1972, I calculated the CAGRs for PPs (with divi...
by Pet Hog
Thu Mar 13, 2014 2:51 pm
Forum: Permanent Portfolio Discussion
Topic: The thing I like best about PP...
Replies: 38
Views: 7736

Re: The thing I like best about PP...

...when gold hits 35% and you sell down to 25%...you are selling 40% of your gold. If this happens back to back ...then the 100 ounces you have is down to less than 40oz. I don't post much, but I'd like to run the numbers.  If gold is 35% of the PP, then the other three asset classes are 65%.  Let'...
by Pet Hog
Tue Dec 03, 2013 3:26 am
Forum: Cash
Topic: Reinvesting dividends and treasury interest?
Replies: 11
Views: 5826

Re: Reinvesting dividends and treasury interest?

Here's the plot of real CAGRs.  Gratifyingly, it displays no downward trend, and reveals that the PP has provided a real return of between 4 and 6% for every portfolio begun on January 1 since 1972—except for the 2011, 2012, and 2013 portfolios, which are suffering from this year's negative return. ...
by Pet Hog
Mon Dec 02, 2013 9:36 pm
Forum: Cash
Topic: Reinvesting dividends and treasury interest?
Replies: 11
Views: 5826

Re: Reinvesting dividends and treasury interest?

stuper1 wrote:
Pointedstick wrote: That downward-sloping CAGR graph is not encouraging. :(
We need a graph of real CAGRs after subtracting inflation.  I think (hope) that would not have the downward-sloping trend.
I'll upload one tomorrow.
by Pet Hog
Mon Dec 02, 2013 7:08 pm
Forum: Cash
Topic: Reinvesting dividends and treasury interest?
Replies: 11
Views: 5826

Re: Reinvesting dividends and treasury interest?

I prefer that dividends and coupon payments be reinvested in stocks and bonds, respectively.  I don't think that rebalancing should occur just because I receive one of these payments.  But what do the numbers say? Below I have drawn the CAGRs for PPs starting on January 1 of each year since 1972 and...
by Pet Hog
Sat Jul 06, 2013 7:55 pm
Forum: Permanent Portfolio Discussion
Topic: Reallocation Bands
Replies: 24
Views: 6753

Re: Reallocation Bands

One more doubt that I would like to know how you do it: - if you have a 100k PP - and you have new 10k to add - it is time to rebalance, but 2,5k to each asset is not so much ... How do you proceed? 1) Rebalance and then add? 2) Or just add to to make it all 25% :-\ There's no difference between th...
by Pet Hog
Fri Jun 14, 2013 6:19 pm
Forum: Permanent Portfolio Discussion
Topic: Adding money to PP
Replies: 23
Views: 6430

Re: Adding money to PP

For a Roth contribution of $5000, I would put 29% ($1450) in stocks, 24% ($1200) in gold, and 23.5% ($1175) each in bonds and cash.  That way the relative amounts of each asset would remain unchanged before and after your contribution, and you would not be making an emotional decision about (partial...