jalanlong wrote: ↑
Mon Mar 16, 2020 7:17 am
technovelist wrote: ↑
Sun Mar 15, 2020 6:51 pm
Smith1776 wrote: ↑
Sun Mar 15, 2020 5:30 pm
What I really find interesting is how much higher one's quality of life is when you don't have your life savings riding in an unbalanced wreck of a portfolio. I'm viewing all of this stuff from a place of detached curiosity.
Andrew Yang in his podcast with Joe Rogan remarked that if you give people a bill that they can't pay, their effective intelligence drops by about 1 standard deviation. The money issue eclipses the horizon of their mind. They become cognitively impaired essentially. The PP prevents that anxiety.
I remember Craig once saying "Us Permanent Portfolio guys are whistling past a graveyard." Yup.
Actually I have a very unbalanced portfolio which is about 63% gold, 17% Swiss Francs, and 20% US dollars (not counting my paid-off house as part of my portfolio).
But it is slanted toward protection from disaster, so when things are going poorly in society it does pretty well.
So how did you come up with that portfolio and that allocation?
I had a standard PP until 1998.
Then I got worried about y2k, and said "What will survive a serious y2k event?"
The answer: gold.
So I was nearly 100% gold by 2000, which turned out to be pretty good lucky timing.
Then I decided to diversify a bit as well as get some interest, so I sold some of the gold in the mid 2000's to buy a couple of Swiss Franc annuities, one of which I'm in the process of cashing out. My plan was to put the proceeds of that annuity back in gold, but we'll see when we get to the final payout next year.
Recently I've been selling gold to come up with cash because I was planning to buy a house this year.
Obviously that's not going to happen, but I'm keeping the cash in T-bills while I watch what is going on in the markets. Maybe I'll even buy some stocks after this disaster plays out.