[EU] Value of short-term bonds as "cash"

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D.J.
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[EU] Value of short-term bonds as "cash"

Post by D.J. » Sat Jan 25, 2020 5:23 am

I've been really happy with PP for the last two years or so.

My current allocation is:
- physical gold
- long-term bonds DBXG
- stocks XD5E
- and cash in the form of short-term bonds C3M

My question is regarding the last ETF. C3M has been performing worse than cash. Is there a specific reason to keep it or should I just keep regular cash?

Thanks
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Vil
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Re: [EU] Value of short-term bonds as "cash"

Post by Vil » Sat Jan 25, 2020 8:33 am

DJ,

In essence, I tend to believe PP of its purest form was/is not designed for the investment world outside US. The mechanisms behind PP simply does not fit for EU. Short term bonds in EU are pain, though as far as I can recall those were advocated by Harry/Craig just because they are giving slightly more of return compared to cash under normal circumstances. Tend to believe there is no really valid reason not to keep cash in EU...
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europeanwizard
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Re: [EU] Value of short-term bonds as "cash"

Post by europeanwizard » Sun Jan 26, 2020 12:49 am

I've got a EU PP, and my cash is NOT in a money market fund. As long as my portfolio is small enough to keep it cash in regular savings accounts, I'll do so.
D.J.
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Re: [EU] Value of short-term bonds as "cash"

Post by D.J. » Sun Jan 26, 2020 4:11 am

Thanks! That solves it. I'll be moving to regular cash.
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Vil
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Re: [EU] Value of short-term bonds as "cash"

Post by Vil » Sun Jan 26, 2020 4:52 am

EU guys,

What's your opinion on Global/US PP implementations that are EUR hedged ?
D.J.
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Re: [EU] Value of short-term bonds as "cash"

Post by D.J. » Sun Jan 26, 2020 10:18 am

I'm currently trying to stick as much a possible to the recommended permanent portfolio, localized for EU. For the mid-term future, I'll be looking at either global PP (so global stocks+bonds, gold and cash EUR/USD) or a split between EU and US. I'm not at that stage yet though.
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