Search found 44 matches
- 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...
- 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 ...
- 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
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?Pfanni wrote: I cannot seem to find valid arguments for owning EUR bonds.
- 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...
- 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...
- 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...
- 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...
- 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...