Murphy's law: the day I make a contribution to my PP, some asset drops the ball..  this time, it's bonds (but thankfully, I added most of my contribution to gold since that was my most underweight asset and I was rebalancing from contributions.)

Usually anywhere between $1000 (absolute minimum) to $10,000 (absolute maximum, unless I have a big purchase coming up soon)

A nice bear trap set up on Friday..  shorts must be in a lot of pain today.

I'm thinking more along the lines of Warcraft classes but I guess you can generalize them to all RPGs. Stocks = Wizard/Mage: They can inflict a ton of damage but are also easily killed. LT Treasuries = Soldier: They can absorb a ton of damage and protect the mages against formidable foes. Cash/ST Tr...

Use the NYTimes Buy/Rent Calculator: http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?abt=0002&abg=1 Enter something like 8-9% for your expected investment returns (avg PP returns), the annual rate of appreciation of your local real estate (could be anywhere from 5-10%), h...

Cash will hit rebalancing bands more often than you think if you make regular contributions..  or what I usually do is just buy the most lagging asset each time.

I'm open to engaging in an intelligent debate with Gold naysayers, but to hear the same old regurgitated excuses (like "you can't eat gold") leaves me quite disheartened.

I work for an investment firm so we have to disclose our personal trades to comply with the law.  My boss had to remind me in recent days to disclose my trades and I told him I didn't make any.  He's perplexed, saying it's suicidal not to go all cash now.  ... I'd say give him a copy of the pp book...

Wow.  That's also a good reminder that everyone needs to learn how to invest their own money and not blindly trust the "experts". [img width=400]http://mediacdn.snorgcontent.com/media/catalog/product/s/t/standbackkid_fullpic_artwork.jpg[/img] In an industry where most (though not all) &qu...

My "PP" implementation (if you can even call it a PP) is: 25% SPY and VTI 25% GLD 25% TLT 25% UUP (I intend to gradually phase UUP out to SHY as interest rates rise) Can you explain your thought process please? Instead of collecting negligible interest payments from SHY, I'd rather specul...

My "PP" implementation (if you can even call it a PP) is:

25% SPY and VTI
25% GLD
25% TLT
25% UUP (I intend to gradually phase UUP out to SHY as interest rates rise)

I work for an investment firm so we have to disclose our personal trades to comply with the law.  My boss had to remind me in recent days to disclose my trades and I told him I didn't make any.  He's perplexed, saying it's suicidal not to go all cash now.  His words were something like "if you'...

Try this philosophy:

http://www.mrmoneymustache.com/2013/10/ ... tion-diet/

http://www.divergentfactions.com/divergent-faction-quiz.html You are Divergent - But Closest to Erudite You wake up in the testing room. Tori looks nervous. “That.. was perplexing. Excuse me, I’ll be right back,”? she says. Tori re-enters looking tense and pale. “You are Divergent,”? she says, “But ...

Correct me if I'm wrong but weren't index funds unavailable in Graham and Buffett's heydays?  If so, generating even an alpha of 0 by buying 10 stocks rather than 500 (from the S&P 500) would be a win in my book.

I buy up to 2 assets each time with the cash contribution with my monthly contribution. For larger one-time contributions, it's fine to buy all 4 assets, and I usually default to rebalancing to 25/25/25/25 using cash, unless I have views on some of the assets..  in that case, I'll choose a weight in...

How would you rebalance if you had bonds and gold in IRAs and Stocks in taxable and one craters while the other shoots to the moon?  Being able to deal with that problem is a main reason I use the PP, and separating assets in taxable and tax-free defeats the purpose.

Bridgewater All-Weather has about $50 Billion or so assets under management.. PRPFX has about $8 billion Although these are not true implementations of the PP, they pretty much have the same intention: creating a safe and secure portfolio that's relatively insensitive to the economic cycle (in theor...

I have 3 PPs: 1) A Strong-Dollar Hedged PP in my taxable account where most of my wealth is currently held (25/25/25/25 SPY/IAU/TLT/UUP) 2) A 2.66x Leveraged PP in my IRA: (33/33/33 SSO/UBT/UGL) 3) PERM in my other IRA that has about $1500 or so..  I keep it open cause it's with Fidelity and I like ...

I get that the main benefit from rebalancing is hopefully lower volatility and higher sharpe ratios but even those are not guaranteed especially if the future correlations between the assets differ drastically from those observed in the past. This is a really good point. Many have the opinion that ...

I don't have the need or patience to prove or disprove anything..  the purpose here is just to point something out. Since when did this turn into a full fledged debate?  I was merely pointing something out and there's no claim whether rebalancing is advantageous or disadvantageous, it's up to you a...

Yes you can cherry pick any start and end times you want. That's my entire point. We can't trade the past, only the future, and there is no certainty that rebalancing going forward will return more than not. If you believe there is, then how can I cherry pick a 33 year period where it didn't work? ...

Just wondering, can you cherry pick starting times, with no rebalancing that show stocks only doing significantly worse?  I bet you can. And of course, don't forget, one of the selling points of a PP is the lowered volatility and drawdowns.  How hard would it have been for stock only holders to sit...

So the PP carries Stocks, LT Treasuries, ST Treasuries, and Gold?  And only Stocks produce real returns over the long run?  Then why does it generate a return that's competitive to the 100% Equities allocation?  And why does the 60/40 Stock/Bond portfolio also generate a similar long-term return as ...

Rebalancing based on target portfolio percentages is different to me because it is future-neutral.  It makes adjustments based on your present-day portfolio, not what you think it will look like a month from now.  That's why rebalancing based on target percentages is often painful -- it may often g...