Stay cool...

General Discussion on the Permanent Portfolio Strategy

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Smith1776
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Re: Stay cool...

Post by Smith1776 » Fri Jul 31, 2020 2:55 pm

craigr wrote:
Fri Jul 31, 2020 6:04 am
Hi All,

I hope everyone stayed cool and rode things out with some smart re-balancing. It's nice to have a portfolio that doesn't make you panic and do dumb things in a market crash.

YTD and 3yr. charts show the PP is smashing a 60/40 index. Low volatility allows re-balancing into the storm without sweating at night. Solid investing is often more about managing emotions rather than high returns. An investor that can keep their cool will come out on top in the long-run. Low volatility investing like the PP proves its mettle once again.

Hope all are well!
Craig, I hope you're doing well and that your business is flourishing.

I'm holding steady with the PP thanks to the work of you and Tex!
PP + VP + Bank Cash + Physical Bullion
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blue_ruin17
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Re: Stay cool...

Post by blue_ruin17 » Sat Aug 01, 2020 11:28 am

sophie wrote:
Fri Jul 31, 2020 2:10 pm
I didn't "opportunistically" rebalance. I did it when I crossed a band. I was watching for when that happened using a google sheet I designed to give the indication, without my having to actually check my portfolio. I remember being a little disappointed though, that I didn't rebalance when stocks hit their low point, as some people here did. However, I would have been rebalancing out of cash into stocks, whereas my rebalance involved moving money from cash and bonds (primarily) and a bit out of gold. In the end I don't think it made a lot of difference.

I'm nowhere near crossing any band right now, so sitting tight as per plan.
What bands do you use?
"Like a confident pack, a confident portfolio provides both strength in fact, as well as — and this is the part I bet you’re missing right now and the focus of this note — strength in spirit."
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Kriegsspiel
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Re: Stay cool...

Post by Kriegsspiel » Sat Aug 01, 2020 11:36 am

I'm a hair's breadth away from hitting 35% gold, I am leaning towards cutting back on luxury purchases so that I can contribute more to the lagging assets until my current contract expires in a few months. But it's not a bad problem to have.
There's this very disturbing set of studies where about half the articles printed in Science and Nature magazines, the two leading publications, involved experiments that could not be repeated by anybody.
- Peter Thiel
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buddtholomew
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Re: Stay cool...

Post by buddtholomew » Sat Aug 01, 2020 12:34 pm

Kriegsspiel wrote:
Sat Aug 01, 2020 11:36 am
I'm a hair's breadth away from hitting 35% gold, I am leaning towards cutting back on luxury purchases so that I can contribute more to the lagging assets until my current contract expires in a few months. But it's not a bad problem to have.
Taxable or tax-deferred accounts?
Selling Gold in taxable is a tough pill to swallow.
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Kriegsspiel
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Re: Stay cool...

Post by Kriegsspiel » Sat Aug 01, 2020 2:01 pm

buddtholomew wrote:
Sat Aug 01, 2020 12:34 pm
Kriegsspiel wrote:
Sat Aug 01, 2020 11:36 am
I'm a hair's breadth away from hitting 35% gold, I am leaning towards cutting back on luxury purchases so that I can contribute more to the lagging assets until my current contract expires in a few months. But it's not a bad problem to have.
Taxable or tax-deferred accounts?
Selling Gold in taxable is a tough pill to swallow.
Taxable. Now, in my case it isn't that big of a deal because I can sell some high cost-basis coins, so the tax bill isn't that bad at all. That's before any IRA or HSA contributions, too.
There's this very disturbing set of studies where about half the articles printed in Science and Nature magazines, the two leading publications, involved experiments that could not be repeated by anybody.
- Peter Thiel
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