On the topic of how countries could deal with foreign bondholders during a euro currency crisis.
It's obviously more likely that domestic bondholders will be treated "better".

Now i'm wondering how an Irish Ishares etf that holds bonds from my own country would be treated, hmz..

But that's only because of the USD-denominated assets, so just adopt a US PP. What exactly is the problem with doing that? Everybody assumes the US will be the last man standing, which probably makes that scenario less likely to happen. I would effectively make a bet on the US, and not just the USD...

AnotherSwede wrote:

[Because I don't../quote]
Me neither

what an awful problem, having that much money in these times.

I realise it's a luxury problem, but it's still a problem.

AnotherSwede wrote:I have a mortgage and have not been able to rationalize paying much more interest than I get.

So I have 75% global equity, 25% gold and try paying off the mortgage.

75% stocks? Holy shit, to each his own but to be 75% in stocks right now?

Let me put it like this for all the people who still say it's all ok and will work out. Lets just say: - you have 25 - 30 yearsalaries in euros. - you live in Europe - most of it is in cash, part of it is in a euro PP - you obviously cannot hold this in cash (especially euros!) Who here will claim w...

Ok, my currency (krona) follows the euro, pounds are worse. I am afraid euros (and bunds) are not worse off than other currencies, even if the euro breaks it must be replaced, 1 to something, by something. It remains to be seen if Germany or whatever country's bonds you hold, will convert foreign c...

AnotherSwede wrote:

Not if you can prevent that to begin with. Which you can.

How?

By not being 100% invested in euros.

If the alternative is worthless currency and equity it is. If the alternative is slowly, but not smoothly, losing nominal value, then smooth-ish 0% return is really good. Not if you can prevent that to begin with. Which you can. I am just questioning a quick and orderly return to positive yields an...

AnotherSwede wrote:25% gold and whatever could be saved of the rest.

It doesn't make any sense to hold a portfolio where you have a chance of retaining a part of your capital.

A global PP (using https://www.ishares.com/uk/individual/e ... -ucits-etf for the bonds), and using a total world ETF for stocks would have never broken down completely.

It does break the PP concept entirely though.

Looking at this, the PP would have been totally destroyed in quite a few cases. Some more evidence for geographic diversification. Certainly, a widely diversified portfolio like the Permanent Portfolio is way better in those cases than one just using stocks/bonds which is what many would recommend....

Looking at this, the PP would have been totally destroyed in quite a few cases. Some more evidence for geographic diversification.