Search found 257 matches
- Sun Feb 07, 2016 7:16 pm
- Forum: Bonds
- Topic: Maximum Bond Upside
- Replies: 278
- Views: 161397
Re: Maximum Bond Upside
MediumTex provided a similar response here: http://gyroscopicinvesting.com/forum/permanent-portfolio-discussion/ultra-low-negative-interest-rates-in-germany/msg140483/#msg140483 The message seems to be that changes in yield will lead to greater volatility in bond prices in low-interest-rate environm...
- Sun Feb 07, 2016 6:38 pm
- Forum: Permanent Portfolio Discussion
- Topic: An article about the Japanese Permanent Portfolio
- Replies: 12
- Views: 7138
Re: An article about the Japanese Permanent Portfolio
That's why I find Chart 8 to be so impressive: smoother growth, smaller drawdowns, and higher CAGR! Does anyone know how exactly to implement a 7% target risk PP? How is the volatility calculated? It seems that only the percentage of treasury bills was varied in that Japan example; stocks, bonds, ...
- Sun Feb 07, 2016 5:28 pm
- Forum: Variable Portfolio Discussion
- Topic: Dual Momentum Permanent Portfolio (DMPP)
- Replies: 18
- Views: 12385
Re: Dual Momentum Permanent Portfolio (DMPP)
Thanks for the quick response. It seems like my understanding of the process was close. You didn't address the GEM concept. Would you advise ever owning international stocks or a total bond market fund in place of US stocks? That seems to go against the HBPP principles. Using Absolute Momentum t...
- Sun Feb 07, 2016 4:43 pm
- Forum: Permanent Portfolio Discussion
- Topic: An article about the Japanese Permanent Portfolio
- Replies: 12
- Views: 7138
Re: An article about the Japanese Permanent Portfolio
A nice read to study how an Japanisation of the Economy could effect the Permanent Portfolio. http://gestaltu.com/2012/09/the-permanent-portfolio-turns-japanese.html/ The article also explores a few more rebalancing mechanism such as moving average and recent volatility. Haven't budd or ghost or so...
- Sun Feb 07, 2016 4:24 pm
- Forum: Variable Portfolio Discussion
- Topic: Dual Momentum Permanent Portfolio (DMPP)
- Replies: 18
- Views: 12385
Re: Dual Momentum Permanent Portfolio (DMPP)
A nice read to study how an Japanisation of the Economy could effect the Permanent Portfolio. http://gestaltu.com/2012/09/the-permanent-portfolio-turns-japanese.html/ The article also explores a few more rebalancing mechanism such as moving average and recent volatility. Haven't budd or ghost or so...
- Thu Feb 04, 2016 4:20 pm
- Forum: Other Discussions
- Topic: Frank R. Lautenberg Chemical Safety for the 21st Century Act
- Replies: 13
- Views: 4074
Re: Frank R. Lautenberg Chemical Safety for the 21st Century Act
PS, I don't think any of the products you listed (BPA, CFCs, lead paint) were developed with the knowledge that they have adverse effects. But there was no FDA-equivalent demanding testing, at the time, to find out. In hindsight, yeah, a lot of those things suck and should be removed from the mark...
- Sat Jan 30, 2016 1:56 pm
- Forum: Bonds
- Topic: Are free trades for treasuries really free? Except for TD Ameritrade?
- Replies: 9
- Views: 7262
Re: Are free trades for treasuries really free? Except for TD Ameritrade?
Two days ago I was in the process of posting a similar question about fees at Fidelity when I noticed this part in their commissions pdf: https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/Brokerage_Commissions_Fee_Schedule.pdf [img width=500]http://i.imgur.com/wKCYuIj.jpg[/img] So a...
- Tue Jan 26, 2016 5:28 am
- Forum: Stocks
- Topic: Where is the money going?
- Replies: 19
- Views: 16698
Re: Where is the money going?
No, you clearly say it yourself. The money doesn't disappear. The money was given to someone else when you bought your stock or house or whatever, it was never destroyed. Then when you sell, you receive someone else's money. Paying off credit is the only way currency can be destroyed. I agree. Let...
- Mon Jan 25, 2016 7:35 pm
- Forum: Gold
- Topic: Commission Free Gold ETFs and CEF
- Replies: 12
- Views: 12182
Re: Commission Free Gold ETFs and CEF
What is lower at Schwab, free trade SGOL (high expense ratio) or low expense ratio IAU but commission trade? The trading fee at Schwab is $8.95 and the expense ratios of IAU and SGOL are 0.25 and 0.39%, respectively. That means you would pay 0.14% more to hold SGOL that you would IAU -- each year....
- Mon Jan 25, 2016 12:12 am
- Forum: Bonds
- Topic: Bonds vs Deflation
- Replies: 8
- Views: 4902
Re: Bonds vs Deflation
Another way of looking at it is that rebalance bands should be tightened when LTT yields get lower. Or that LTTs should make up a greater percentage of the PP to magnify the effect of their lower volatility. Does that make sense? Great post, Pet Hog, but you lost me at the very end. When yields a...
- Sun Jan 24, 2016 4:57 pm
- Forum: Bonds
- Topic: Bonds vs Deflation
- Replies: 8
- Views: 4902
Re: Bonds vs Deflation
As LTT rates approach zero, there is less and less upside potential. Without using fancy bond price equations, I look at it this way: Right now US 30-year treasury bonds have a yield of 2.83%. $1000 compounded over 30 years at this rate would equal $2310 eventually. If yields went down to zero, s...
- Tue Jan 05, 2016 7:52 pm
- Forum: Permanent Portfolio Discussion
- Topic: I miss Craig Rowland
- Replies: 53
- Views: 25945
Re: I miss Craig Rowland
Frugal: In case you missed it, Kriegsspiel and I posted our calculations of the PP's returns in 2015 here.frugal wrote: Hello fellows,
every year we had Mr.Craig Rowland's analyzes and now we don't have it anymore.
I am sad
Craig Rowland come back, please.
Regards.
- Tue Jan 05, 2016 7:42 pm
- Forum: Permanent Portfolio Discussion
- Topic: Tilt due to taxes?
- Replies: 15
- Views: 7821
Re: Tilt due to taxes?
Why would you want to do that? Because they are the most volatile. Also, as Mark stated above, "your yield is delivered as LT capital gains instead of interest." Consider two 30-year treasury bonds currently available at Fidelity: (A) Maturity 2/15/2045; coupon 2.50%; ask price: $903.91/bond; yield...
- Tue Jan 05, 2016 3:36 am
- Forum: Permanent Portfolio Discussion
- Topic: Tilt due to taxes?
- Replies: 15
- Views: 7821
Re: Tilt due to taxes?
... and buy new 30 year bonds with the lowest interest rate. Why would you want to do that? Because they are the most volatile. Also, as Mark stated above, "your yield is delivered as LT capital gains instead of interest." Consider two 30-year treasury bonds currently available at Fidelity: (A) Mat...
- Fri Jan 01, 2016 4:36 pm
- Forum: Permanent Portfolio Discussion
- Topic: Poll: HBPP Component Predictions for 2015
- Replies: 37
- Views: 19098
Re: Poll: HBPP Component Predictions for 2015
For the year, I got: VTI -0.11% TLT -2.03% IAU -9.71% SHY +0.38% -2.88% (-2.63% real) I calculate slightly different numbers from the adjusted closes on Dec 31 2014 and the CPI-U from Nov 2014 to Nov 2015 (the latest year-over-year numbers available). VTI (from 103.93 to 104.30): +0.36% TLT (from 1...
- Tue Dec 15, 2015 4:32 am
- Forum: Other Discussions
- Topic: Citizen's Dividend a reality in Finland
- Replies: 33
- Views: 12412
Re: Citizen's Dividend a reality in Finland
Not every dollar is a US dollar, Grasshopper.barrett wrote: The first sentence of the link the OP provided reads:
"Finland’s government is drawing up plans to pay every citizen a basic income of euros 800 ($1,165) each month, scrapping benefits altogether."
Am I the only one bothered by the bad math?
- Sat Dec 12, 2015 2:50 pm
- Forum: Permanent Portfolio Discussion
- Topic: Did Harry Browne consider this flaw in his strategy?
- Replies: 41
- Views: 21933
Re: Did Harry Browne consider this flaw in his strategy?
I'm no expert either, but a couple of things. HB published that book in 1989, I believe, when yields on 30-year treasuries were >8%, so there was definitely room to double if rates decreased. Today, it's a different story, as you have stated. Your calculated maximum bond price increases of 64% (yie...
- Fri Dec 11, 2015 5:05 pm
- Forum: Permanent Portfolio Discussion
- Topic: PP now beating SP500 YTD
- Replies: 61
- Views: 29170
Re: PP now beating SP500 YTD
I like a mathematical challenge. First up, S&P500: From Dec 31, 2014 (2058.90) to today (2012.37) = -2.260% Next, PP components (a four-ETF version; adjusted closes, so dividends reinvested): VTI: from 104.52 to 103.24 = -1.225% TLT: from 123.03 to 123.76 = +0.593% GLD: from 113.58 to 103.11 = -9....
- Fri Dec 11, 2015 4:20 pm
- Forum: Permanent Portfolio Discussion
- Topic: PP now beating SP500 YTD
- Replies: 61
- Views: 29170
Re: PP now beating SP500 YTD
Dec 1, 2014 :: 2,058 Dec 1, 2015 :: 2,052 S&P today :: 2,012 Not sure how to calculate precisely how the pp is doing, but is it time to revive this thread? I like a mathematical challenge. First up, S&P500: From Dec 31, 2014 (2058.90) to today (2012.37) = -2.260% Next, PP components (a four-ETF ve...
- Sat Nov 07, 2015 12:05 pm
- Forum: Bonds
- Topic: Getting Started with Bonds
- Replies: 56
- Views: 26209
Re: Getting Started with Bonds
The yield actually got as low as 2.25% on 1/30/ 16 . Please, Barrett, remember Harry's Rule #4 when posting on this forum! Wow…. Please forgive a newbie’s comment. I just read Craig’s PP book and WAS excited about moving money toward a strategy that was touted as safe, simple to implement, and easy...
- Fri Nov 06, 2015 12:09 pm
- Forum: Stocks
- Topic: Quarterly vs yearly dividends
- Replies: 7
- Views: 6040
Re: Quarterly vs yearly dividends
ashantiwarrior, are these the two funds? https://www.fidelity.co.uk/fund-supermarket/Fidelity-Index-World-Fund-P-Inc-GB00BP8RYB62 https://www.fidelity.co.uk/fund-supermarket/Fidelity-Index-World-Fund-P-Acc-GB00BJS8SJ34 All things being equal, and if there is no difference between the two funds apart...
- Tue Nov 03, 2015 6:23 pm
- Forum: Bonds
- Topic: Which maturity?
- Replies: 11
- Views: 6366
Re: Which maturity?
Actually I just thought of a third option. So it's: 1) Continue purchasing 2037-maturity bonds until it's time to roll over the entire lot, 2) Purchase bonds with the longest maturity no matter what (in this case 2039-maturity bonds), or 3) Roll over your entire 2037-maturity holding into the bonds...
- Tue Nov 03, 2015 12:54 pm
- Forum: Permanent Portfolio Discussion
- Topic: Why the PP is better in accumulation than you think
- Replies: 224
- Views: 69331
Re: Why the PP is better in accumulation than you think
I am retiring in two years. I have the classic 25% PP. If I retired two years ago and drew out 4%, I am guessing I would down close to 8% since PP earned next to nothing in this time period. Assuming this is the case, what would I have to drop down to the the third year to avoid depleting my portfo...
- Sat Oct 31, 2015 12:50 pm
- Forum: Permanent Portfolio Discussion
- Topic: PP is once again positive YTD
- Replies: 202
- Views: 65584
Re: PP is once again positive YTD
Not only that, for the moment it's beating a 100% total stock market index portfolio and a conservative 55% bond Boglehead portfolio. All assets but stocks are once again positive YTD. Could turn around tomorrow, but it's at least a good reminder of how tough a year this has been for investments. U...
- Tue Oct 27, 2015 7:18 pm
- Forum: Other Discussions
- Topic: If I live in Ireland, what is the Irish income tax burden?
- Replies: 5
- Views: 2812
Re: If I live in Ireland, what is the Irish income tax burden?
My gut feeling is that if you don't earn any money in Ireland then you would have to file only in the US. When you say "Irish residency," do you mean you will be gaining residency in Ireland (like a US green card), or will you be there on a visa? That might affect your tax status. (Perhaps someone...