MangoMan wrote: Btw, why does your post count show '2'? At one point you had around 30 posts IIRC.

It looks like a bunch of his posts were deleted. Not sure why.

You could play with this idea at Tyler's www.portfoliocharts.com
Just go to the calculator section and put in whatever asset allocation you would like to backtest.

For bonds, similar: 1. Directly held 2. TLT 3. Non-treasury Non-treasury bonds are really not appropriate when building the PP for a variety of reasons. https://web.archive.org/web/20160324133409/http://www.crawlingroad.com/blog/2009/02/09/permanent-portfolio-25-bond-allocation-faq/ Everything else...

Under-performance can be either due to larger than average losses or lower than average gains. Using absolute momentum could give rise to a situation where lordmetroid is out of an asset that is gaining due to not hitting a certain trigger, correct? Investing is totally personal and while you might ...

The main draw of the PP is it's incredibly low volatility. This psychological benefit helps us stick with it (not change strategies) when it under-performs because we know it provides safety under different economic conditions. You've already switched portfolios multiple times so I am wondering if y...

I am really uncomfortable holding gold and long bonds in another currency. As far as I know gold is gold, doesn't matter what currency the etf uses. The returns are the same when converted to your own currency. Holding IAU doesn't expose you to any currency risk. I agree with the others, stick with...

You are very correct. Thanks for not taking offense at my comment :) Some other thoughts: 1. Can you implement a US Permanent Portfolio from Sweden? You already hold Gold and US Long Bonds so you are only missing the US Stocks portion; maybe you can find an appropriate index fund. User LC475 believ...

After a year of passive investment using the Permanent Portfolio I frew tired of loosing my hard earned money. So in November I switched to an Absolute Momentum Portfolio and begun worrying about my money on a daily basis. When the market tanked at the beginning of the year I sold. The following da...

There is no approach with PP assets that will avoid all tax issues. You could hold the entire PP in an HSA. Contributions, earnings, and withdrawals are tax-free  ;) I just re-read the question and I think we're getting off topic here. Is the OP just asking if rebalancing in a tax-deferred account ...

Almost all portfolio backtesting research ignores taxes since those are very much dependent on individual circumstances. You can just take the results from www.peaktotrough.com and assume they are for a tax deferred account.

ZedThou wrote: I will see it in a week or two, trying to avoid crowded theaters.

In the meantime I am trying to avoid any spoilers...

Maybe avoid clicking on threads titled "Star Wars" 

I might not be reading your charts correctly, but couldn't expected out-performance of the 3x Parity PP and the Tilt PP relative to the HBPP be due to not having a cash/short term treasury component?

The following is my opinion only:

Dissenting opinions = fine
Thread jacking = Depends on the circumstance. Sometimes it happens accidentally and often times not a big deal.
Purposely thread jacking every thread = Absolutely not fine and ban-worthy

Wow, I didn't realize I'd start such a lively discussion. Sorry for going silent, I got busy with work. I'm reading through the replies with wide eyes. With the long weekend I hope to do some more reading and get a sense of my comfort level with bonds. Thanks and Happy Thanksgiving to all! SG This ...

I have one with Fidelity through my employer's health plan and they pay all fees (other than trading fees). It has a brokerage window (Fidelity trades iShares and US Treasuries for free) and I can also use it to invest in our 401k funds. Seems like a great deal to me :) I will likely put the HSA fun...

Xan wrote: I think your HSA would just be an extension of your traditional IRA.

I think this answers the question. So essentially I would put in the asset that has the highest growth prospects in the HSA, similar to a traditional IRA. I guess this would be... stocks?

Thanks!

Hi All, I currently have a Health Savings Account (HSA) with a balance that is 100% cash (the Core position that can be used to pay for qualified medical expenses). I do consider this part of my Permanent Portfolio. To increase my tax efficiency, I am considering using these funds to invest in eithe...

Why bother donning a winter coat in summer, just because we know winter is coming? Enjoy the summer, but know where the coat is. Maybe one can find a good deal on a winter coat in the summer because no one else is buying? maybe if they live in the bahamas they shouldn't be buying a winter coat befo...

ochotona wrote: Why bother donning a winter coat in summer, just because we know winter is coming? Enjoy the summer, but know where the coat is.

Maybe one can find a good deal on a winter coat in the summer because no one else is buying?

So what you're saying is... gold is going to save the day? It's the only asset which, according to you, isn't 'possibly topping.' I don't understand why everyone is so anti-PP all of a sudden, especially with it handily beating the market YTD. It is performing within the expected bounds (according t...

Sounds like a good plan to me. Glad I could help 

+1 

I don't see why average returns would be useful for projecting forward. I lost many hours of my life reading about this last night that I'll never get back.  It's boring and confusing.  Let me see if I can summarize so you don't suffer the same fate. Thanks for the response, Tyler! Though, I still ...

Yes there are definitely some scenarios where you wouldn't have enough cash to buy the assets in the IRA. I actually put my yearly IRA contribution and 401k contributions in Cash and decide what to do when I hit a rebalancing band. Since I am in the accumulation phase, I expect to only hit rebalanci...

Okay, interesting. I think I'm following. So I'd use as much cash as necessary in the IRA to rebalance the Gold and LTT. Then, I'd rebalance my cash portion by moving the stock proceeds into the stable value fund. Yeah that sounds like it will work! Yes that is essentially the idea! If we're okay r...