Search found 44 matches

by Kike Moreno
Mon Jan 05, 2015 4:51 pm
Forum: Permanent Portfolio Discussion
Topic: Mixed Europe/US Permanent Portfolio
Replies: 33
Views: 16401

Re: Mixed Europe/US Permanent Portfolio

Regarding the performance of a EU-PP portfolio, I have actually did some testing (which may be replicated in the future... or not!) from 1 July 2007 onwards. There is a Spanish blog devoted to the euro permanent portfolio that has an interesting page with the evolution since 1999: http://www.carter...
by Kike Moreno
Mon Jan 05, 2015 4:45 pm
Forum: Permanent Portfolio Discussion
Topic: Mixed Europe/US Permanent Portfolio
Replies: 33
Views: 16401

Re: Mixed Europe/US Permanent Portfolio

I would be very hesitant to recommend a German put his stock exposure all into German stocks or bonds, or a Japanese into Japan, etc.  Those are way too concentrated of positions, IMO.    I can see the cash being put into Euros for a Euro person though.  I'm not sure Harry Browne would have agreed ...
by Kike Moreno
Fri Jan 02, 2015 8:17 am
Forum: Permanent Portfolio Discussion
Topic: Mixed Europe/US Permanent Portfolio
Replies: 33
Views: 16401

Re: Mixed Europe/US Permanent Portfolio

Pfanni wrote: I cannot seem to find valid arguments for owning EUR bonds.
For me the point is to avoid the currency risk.  What if the EUR/USD exchange rate raises again to 1.59?  Or what if, as you are worrying, the euro collapses and your "New Mark" appreciates a lot with respect to the USD?
by Kike Moreno
Fri Jan 02, 2015 7:02 am
Forum: Permanent Portfolio Discussion
Topic: Mixed Europe/US Permanent Portfolio
Replies: 33
Views: 16401

Re: Mixed Europe/US Permanent Portfolio

Hi Mouro. The problem with this ETF is that it holds bonds from France and Italy for example which are not top quality.  For a PP in euros I think that it is better to stay with German bonds (or alternatively Finland or the Netherlands, whose risk premium is very low).  You need the asset with the t...
by Kike Moreno
Thu Jan 01, 2015 8:56 am
Forum: Permanent Portfolio Discussion
Topic: Mixed Europe/US Permanent Portfolio
Replies: 33
Views: 16401

Re: Mixed Europe/US Permanent Portfolio

Everyone but the americans will be exposed to the USD currency risk because gold is valued on the global market in the world currency of USD. I don't agree with that.  It does not matter in which currency the gold price is expressed.  Everyone could be talking about gold prices in EUR and nothing w...
by Kike Moreno
Thu Jan 01, 2015 4:50 am
Forum: Permanent Portfolio Discussion
Topic: Mixed Europe/US Permanent Portfolio
Replies: 33
Views: 16401

Re: Mixed Europe/US Permanent Portfolio

Other advantages may outweigh that disadvantage.  Investors should be aware of it, though. Yes, I agree.  You are lucky in the US to have this strong link between your currency inflation and the gold price.  Being in Europe I prefer a pure EUR PP and assuming a smaller protection for inflation rath...
by Kike Moreno
Wed Dec 31, 2014 1:03 pm
Forum: Permanent Portfolio Discussion
Topic: Mixed Europe/US Permanent Portfolio
Replies: 33
Views: 16401

Re: Mixed Europe/US Permanent Portfolio

I said "more canonical" because AFAIK Browne recommended having the portfolio in your own currency if you were in a large enough currency area (or use USD if you were in a small country) to avoid currency exchange risks. With regard to the inflation protection, if there is both inflation in the US a...
by Kike Moreno
Wed Dec 31, 2014 11:32 am
Forum: Permanent Portfolio Discussion
Topic: Mixed Europe/US Permanent Portfolio
Replies: 33
Views: 16401

Re: Mixed Europe/US Permanent Portfolio

Have you considered the currency risk from including USD in your portfolio?  It could go up with respect to the euro, but also down... I really prefer a more canonical EUR permanent portfolio composed by: 25% in an ETF following MSCI EMU to have the maximum diversification without leaving the euro 2...