P.S. Technically, zero duration cash doesn't decline in a rising rate environment. It is going up in real terms and gaining purchasing power vs all other currencies. So while 1-yr T-Bills could decline a wee bit, the loss is quickly offset by reinvesting at the higher rates. This assumes, of course...

The Desert portfolio on portfoliocharts doesn't use short term treasuries. With STT's the picture changes. When you lower your gold allocation, you have to lower your duration as well. I believe Desert himself uses tilted stocks and intermediate treasuries. I haven't lived through the seventies so I...

Thanks for the replies so far, I agree with the idea that an allocation like the PP could very well be good enough, and that it doesn't make sense to overcomplicate it. Part of me believes however that the PP itself might already be overcomplicating things. Or maybe not exactly overcomplicating, as ...

One of my concerns with the 4x25 portfolio is that 75% of its assets are highly volatile. The usual response is that you shouldn't look at assets in isolation, and so far in the history of the PP that has played out very well. The correlations between the three volatile asset classes have drifted ov...

Seems like a good enough portfolio to me. Are you planning to use a 4x25 allocation? Most important question is do you think you can stay the course with this 'custom' portfolio? Also make sure you're aware of all the implications when using US domiciled etf's: https://www.bogleheads.org/wiki/Nonres...

That's a complicated situation... Have you thought about talking to an advisor? Your current plan seems really complicated to me. Have you seen the thread about a global PP? Using global stocks/bonds might make sense and you'd only need two etf's for that. Ishares has a high quality global bond etf....

Regarding the GB: if something looks too good to be true... SCV backtests so well because of the very high returns over the last 40 years and because of the low correlation. The holy grail basically. Both are unlikely to repeat themselves. Yes, and the PP is also not likely to repeat the same succe...

No idea. Do they need to be paid out? Won't they be converted straight away to the new currency? I guess it's quite likely though that Germany and some other northern countries will continue with the euro in one way or another, and that the southern countries will be cut loose at some point. But who...

Regarding the GB: if something looks too good to be true... SCV backtests so well because of the very high returns over the last 40 years and because of the low correlation. The holy grail basically. Both are unlikely to repeat themselves. It can still make sense to hold SCV but there's no reason t...

The good thing is, you are already pretty well protected. One of that advantages of the Eurozone is that you, as a Portuguese, can own much higher quality bonds (compared to Portugese bond) WITHOUT any currency risk. That's pretty amazing. German/Dutch/Austrian bonds are great for 'flight to quality...

Regarding the GB: if something looks too good to be true... SCV backtests so well because of the very high returns over the last 40 years and because of the low correlation. The holy grail basically. Both are unlikely to repeat themselves. It can still make sense to hold SCV but there's no reason to...

My only issue with the Desert Oasis is that it doesn't hold any cash. As someone who is looking to retire in the next little while, that's an important consideration. One could argue that the treasuries and stocks are kicking off a lot of interest and dividends, I guess. My recollection is that Des...

Gotta love the name of the indices though: "Scientific Beta Diversified Multi-Strategy Factor Indices"

Cash, I was too lazy to type stocks/gold/bonds/cash.

I am in the same category 4x25 + EF What is your allocation after accounting for the EF? I try to make sure that the EF total stays stable so I am forced into allocating new capital to the PP. So easy for me to place new investable money in cash and end up too cash heavy. I sort of do the same. I k...

The problem of using the cash part of the PP as an emergency fund is that it's too small when you start out and it can easily feel too big when you have a sizeable portfolio. It's important to remember that when your portfolio starts to get bigger that you're holding three pretty volatile assets at ...

About 20% of net income, aiming at 25%.

Performance has been amazing this year, and pretty unexpected too!

EU-PP is up 10.4% YTD. Inflation 0%.

The long term euro-gov bonds are up 25%, yielding absolutely nothing...

lordmetroid wrote: I already abandoned the idea a few days after my proclamation of 100% stocks.

Allright, might have missed that. Good thing you reconsidered! Take it slow now 

It will be 100% Mid Cap Swedish stocks. I like the Mid Cap Swedish Stocks as they have historically been giving a much greater return compared to the Large Cap index. I also thought about diversifying internationally but I don't like the extra currency risk. Maybe I should get myself 50/50 Large Ca...

One thing that speaks in favor of SCB is that there will be less opportunities for behavorial mistakes. The problem with SCV investing is that the premium is a moving target. Even if it still exists, you still have to catch it. Is Vanguards SCV-fund 'valuey' enough to capture the premium? Or do you ...

Gold offers protection to anyone on this planet, you can talk any kind of financial wizardry, an ounce of gold is an ounce of gold and has exactly the same value for anyone in the world. It does, in a way. But when you add gold to non-US assets it's perfectly possible that your bonds go down at the...

Gold is gold, but it doesn't offer the same protection when you combine it with non-US assets. Gold reacts primarily to the US-dollar.
So a non-US PP could still be a good and diversified portfolio, it won't offer the 'bulletproof protection'.

No one really knows if it will be better or not. It will be a lot simpler. Given your tendency to tinker I would choose one global stock fund or etf and be done with it. Even if a 'real' PP isn't possible, a combination of MSCI World, Swedish bonds and some gold makes a fine portfolio. Only buy stuf...

Hi Lord, Ishares has a global AA+ bond etf, see also Dutchtraffics Global PP thread. AUM are tiny though. Instead of holding cash and LT's seperately you could also lump them together by using only intermediate treasuries. That's probably easier to implement. Historically intermediate treasuries hav...