Unrealized gains in GLD have evaporated. Does a PP investor sit on their hands and weather the storm? Un-nerving and unsettling to say the least.

Gumby wrote: A storm is coming. The flight to cash has begun. Time to close up the windows.

Gumby-

What are you suggesting? Is this comment specific to PRPFX, the HBPP or any investment other than Cash?

Best-
Budd

Avoid looking at assets in isolation. The portfolio is down overall.

I can't buy equal amounts to have 25% splits because I already have 10% in stocks and 8% in gold and 90% in cash.

Just consider it as a re-balancing event and contribute the appropriate amounts to end up with 25% in each of the 4 asset classes.

The article and commentary appear to speculate that the authorities are manipulating the price of gold. Where is the proof that government agencies are directly impacting commodity price movements?

TripleB-

Correct me if I am mistaken, but rebalancing with new contributions does not trim gains from assets that have appreciated in value. The approach merely restores the portfolio to its original risk profile of 4x25%.

Best-
Budd

Not anymore...we are slightly up for the day at market close. VTI: -.66% GLD: -.18% TLT: 1.04% SHV: .03 Of all people, I am sure you are pleased. Yes, the portfolio has performed admirably. However; I am still searching for options to "lock in" profits without incurring capital gains. Reb...

Not anymore...we are slightly up for the day at market close.

VTI: -.66%
GLD: -.18%
TLT: 1.04%
SHV: .03

If you do decide to DCA, I would recommend contributing to each of the components equally.

Thank you all for your valuable insight and recommendations. I have been working on viewing the portfolio as a whole and not scrutinizing the performance of each of the individual components. However; the recent movements in GLD has focused my attention on the impact a single holding can have on the...

Thanks MediumTex. I realize that I am too emotionally invested in the gyrations of the portfolio on a day-to-day basis and would like nothing more than to tune out the noise. I transitioned from a 65/35 Boglehead portfolio for the PP and its reduced volatility, but have found that large moves in one...

Continuing to watch the gains in GLD disappear. Wish there was a better plan to capture some of those gains without incurring taxes. This is a horrible experience...

I like option #4 (the "buy lagging assets option"), so long as this makes sense from a trading cost and tax perspective.  When I have cash coming online for some reason, this is generally what I do. I look at it as an opportunity to get back to 4x25% without much risk of tax consequences....

I personally would view this as a chance to safely speculate.  None of the options are wrong, so pick the one you think is going to do the best, and see if you're right. If it were me, I'd buy bonds. Very interesting perspective. Buying bonds was not one of the options I was considering. Would you ...

I have an additional 10K in Cash available for investment in a taxable account and am weighing the following options. I have a total of 10K in ST and LT capital gains incurred after selling PRPFX earlier this year and transitioning to the 4x25 HBPP. 1. Do nothing. All assets are well within their 15...

I hold PP in taxable and tax considerations dictate when to rebalance. I maintain 10% additional in Cash (outside of PP) for rebalancing purposes and intend to contribute to the lagging asset/s to restore the allocation when 15% is breached. Taking a 28% short-term gain with 30+ years of investing b...

Does rebalancing with new cash have the same impact on the portfolio as restoring a lagging asset to 25%? In other words, does it make sense to be fully invested in all assets and rebalance between the holdings, or have cash reserves to increase lagging assets to 25% of the portfolio when they fall ...

what concerns me the most about the PP,  warranted or not, is the behavior of the portfolio on an up day in the overall market. On days where the S&P performs well, the gain doesn't seem to offset the losses in Gold or Treasuries. Conversely, when the market tanks, Gold and Treasuries carry the ...

I've spent many years at Diehards.org, A.K.A Bogleheads and always considered my portfolio as a whole. Today, I decided to look at the PP and VP components in isolation and realized that I am slightly underweight in equities to the tune of 3-4%. I plan to exchange FI for Stocks in the VP to 65/35 to...

Thanks MediumTex for appeasing my concerns. I wish that I wasn't so emotionally invested in the ebbs and flows of the market and took a more objective and rational view of the volatility. I rebalanced my VP (60/40) and PP (taxable) this week and will continue to press forward. I hope that I don't ca...

Since I don't see too many PP investors panicking over the recent downgrade in the credit rating, I'll share my perspective on the topic. I am fearful to the point of converting to cash in an attempt to protect investments from the trouncing I expect the portfolio to take next week. Am I irrational...

Since I don't see too many PP investors panicking over the recent downgrade in the credit rating, I'll share my perspective on the topic. I am fearful to the point of converting to cash in an attempt to protect investments from the trouncing I expect the portfolio to take next week. Am I irrational ...

I am not sure whether there is any merit to this theory, but was the decline in TT's today attributed to the ECB's decision to begin buying their own bonds? LTT yields in the US are substantially lower (less profit potential) than equivalent fixed income investments abroad (yields higher). Nevermind...

As outlined in another thread, I too was in the same position as the OP. However; I decided to contribute to each of the asset classes (VTI - 55%, GLD, TLT and CASH - 45%) and restore the portfolio AA to 4x25%. At the end of the afternoon, I was down .085% more than if I had not invested any new mon...

Storm wrote: I admit, today is a terrible day, but the simulated PP I started on August 1st is still up 0.8%.

I am not second guessing the PP, but rather questioning my timing in rebalancing the portfolio with new money.