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Desert Portfolio vs PP
Posted: Thu Mar 26, 2020 10:18 am
by jalanlong
Any ideas as to why the Desert Portfolio as outeperformed the PP so handily since 1983? Is it strictly the drag of 25% gold vs 10% gold?
Re: Desert Portfolio vs PP
Posted: Thu Mar 26, 2020 10:45 am
by jhogue
I could be wrong, but I believe that a Desert Portfolio generates more taxable interest and dividends than an HBPP. The charts do not account for that real world problem.
Re: Desert Portfolio vs PP
Posted: Thu Mar 26, 2020 11:13 am
by pmward
Since 1983 we have had the greatest bond and stock bull markets in history. So a portfolio that had more bonds and stocks won over that period. The question to ask, is 1983 to 2019 the exception or the rule?
Re: Desert Portfolio vs PP
Posted: Sat Mar 28, 2020 5:11 am
by WhiteElephant
There has been some discussion about treasury duration for the Desert Portfolio, but I think it the duration was 5 years instead of 10. That would reduce the outperformance somewhat.
Re: Desert Portfolio vs PP
Posted: Sat Mar 28, 2020 7:12 pm
by Smith1776
The desert portfolio... particularly one with factor tilling in the equity, is what I consider to be a gateway drug to the PP.
25% gold is too bitter a pill to swallow for many people. 10% just gets them in the door.
So I guess 10% gold is marijuana. 25% gold is hardcore Breaking Bad levels of drug abuse?