MediumTex wrote:What is your understanding of the maximum peak to trough PP drawdown that occurred in the 1981-1982 period?
My understanding is that it was not 25%. It was, instead, less than 25%. That is my understanding. Thanks for asking!
I believe this is also Mr. Ghost's understanding, that he knows he doesn't have a leg to stand on with his erroneous/exaggerated/misremembered claim, because otherwise he would simply post the data showing his rectitude and we would all proceed to agree with him. Instead, he has chosen to "dig in" and continue to lob his spurious criticism of the PP as frequently as he possibly can work it in.
The rest of us just say: Show Me the Data!
But he can't. 'Cause his claim is bogus. He doesn't have the data.
Also, as a minor, tiny, irrelevant I'm sure, note: the biggest actual
"draw-down" (you know, the kind that actually exists outside of Ghostly imaginations) for the PP came immediately after experiencing a ~18.5% gain in a single month. It lasted for three months and at bottom amounted to a loss of ~20%. Oh, the humanity.
Yep, gold can be volatile. Yep, gold sure was volatile in 1980. Yep, gold could be volatile again. And yep, the PP smoothed things out as well as could possibly be expected when an asset amounting to 25% of it suddenly skyrockets to the moon and then just as suddenly crashes to the floor.