New PPer needs guidance.

General Discussion on the Permanent Portfolio Strategy

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Matthew19
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Re: New PPer needs guidance.

Post by Matthew19 » Fri Jun 05, 2015 9:26 am

buddtholomew wrote: Run as far away as fast as possible...I could not be more sincere. This portfolio is not what they make it out to be. This is the 7th day of straight losses...the money you can't affort to lose...my a$$
I'm sorry for the losses but I really don't plan to run. I can appreciate that this is a strange market and while it adjusts the PP will have some short term stagnation. I don't plan to look at it daily or even weekly, I run a business and have a family, I'd rather enjoy life.
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Re: New PPer needs guidance.

Post by Pointedstick » Fri Jun 05, 2015 9:47 am

Matthew19 wrote:
buddtholomew wrote: Run as far away as fast as possible...I could not be more sincere. This portfolio is not what they make it out to be. This is the 7th day of straight losses...the money you can't affort to lose...my a$$
I'm sorry for the losses but I really don't plan to run. I can appreciate that this is a strange market and while it adjusts the PP will have some short term stagnation. I don't plan to look at it daily or even weekly, I run a business and have a family, I'd rather enjoy life.
Boom. Exactly the right attitude!
Human behavior is economic behavior. The particulars may vary, but competition for limited resources remains a constant.
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buddtholomew
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Re: New PPer needs guidance.

Post by buddtholomew » Fri Jun 05, 2015 9:49 am

Matthew19 wrote:
buddtholomew wrote: Run as far away as fast as possible...I could not be more sincere. This portfolio is not what they make it out to be. This is the 7th day of straight losses...the money you can't affort to lose...my a$$
I'm sorry for the losses but I really don't plan to run. I can appreciate that this is a strange market and while it adjusts the PP will have some short term stagnation. I don't plan to look at it daily or even weekly, I run a business and have a family, I'd rather enjoy life.
That is the correct perspective and your philosophy aligns well with the composition of the portfolio.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
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Re: New PPer needs guidance.

Post by MachineGhost » Fri Jun 05, 2015 10:50 am

buddtholomew wrote: Run as far away as fast as possible...I could not be more sincere. This portfolio is not what they make it out to be. This is the 7th day of straight losses...the money you can't affort to lose...my a$$
Are you being sarcastic?  Think long-term, not short-term.  Nothing is PERFECTLY non-correlated to each other 24/7.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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Re: New PPer needs guidance.

Post by MachineGhost » Fri Jun 05, 2015 10:54 am

Matthew19 wrote: I feel like I understand everything except the cash portion. Is a treasury note ladder a pain to manage and would I be better with a money market fund?
CD's would have an edge in laddering due to the available maturity dates (out to 10-years in some cases).  If you can handle remembering to buy a new T-Bill every 90 days, then liquidity is a big concern for you, otherwise just stick to 1-year.  There's no autorollover for T-Bills akin to CD's at TreasuryDirect AFAIK but maybe Fidelity has an option like that.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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Re: New PPer needs guidance.

Post by Tyler » Fri Jun 05, 2015 11:03 am

Matthew19 wrote: I'm about 70% cash right now with the rest split between miners and foreign stocks. I have about 60k in paper losses on the miners, which absolutely makes me sick considering how hard I have to work for that.

What does everyone use to track their PP as a whole? Iv looked at Google Finance, where you just plug in your buys and get a nice overview.
The best day to start a PP is always the present day!  IMHO, you're also in great shape even from a tax perspective, especially if capital losses on the miners would offset any gains in the foreign stocks for tax purposes.

I personally use Mint to track my net worth and total investment account balances, and the Yahoo Finance app to glance at daily ETF movements.  The investment side of Mint isn't that great for detailed tracking, but I kinda like it that way.  I prefer to stay out of the weeds as much as possible, and will login to my brokerage when I need to to check the bands occasionally. 

Welcome to the forum!
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Re: New PPer needs guidance.

Post by Tyler » Fri Jun 05, 2015 11:08 am

Matthew19 wrote: I feel like I understand everything except the cash portion. Is a treasury note ladder a pain to manage and would I be better with a money market fund?
Fidelity has a nice tool for building a treasury ladder, and I believe you can even automate repurchasing new treasuries when they expire.  That said, I personally went with a simple STT ETF for convenience.  When I needed cash for a down payment on a house, selling a chunk of SCHO seemed easier than figuring out how to dissect a ladder. 
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Re: New PPer needs guidance.

Post by MediumTex » Fri Jun 05, 2015 1:20 pm

Matthew19 wrote:
buddtholomew wrote: Run as far away as fast as possible...I could not be more sincere. This portfolio is not what they make it out to be. This is the 7th day of straight losses...the money you can't affort to lose...my a$$
I'm sorry for the losses but I really don't plan to run. I can appreciate that this is a strange market and while it adjusts the PP will have some short term stagnation. I don't plan to look at it daily or even weekly, I run a business and have a family, I'd rather enjoy life.
If the PP were a 10 hour international flight, budd would be the guy sitting next to you who turns to you every 30 minutes and says: "I'm pretty sure the plane is about to crash."
Only strength can cooperate. Weakness can only beg.
-Dwight Eisenhower
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Re: New PPer needs guidance.

Post by LC475 » Fri Jun 05, 2015 1:26 pm

Matthew19 wrote: I feel like I understand everything except the cash portion. Is a treasury note ladder a pain to manage and would I be better with a money market fund?
On most brokers it is dead simple.  At least it is on Fidelity.  They will probably send you notices every single time a rung rolls over, which is a bit silly but not a problem.  I have T-Bills and so just a one-rung "ladder", and every few months I get a message about how they're expiring and how I have thousands and thousands of gov't and commercial bond options available that I should roll it into, ha, ha.  I think they finally stopped sending me the physical letters in the mail.  Maybe.  Or maybe I just tune it out now.  Set it up and it just automatically does its thing.
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Re: New PPer needs guidance.

Post by buddtholomew » Fri Jun 05, 2015 1:26 pm

MediumTex wrote:
Matthew19 wrote:
buddtholomew wrote: Run as far away as fast as possible...I could not be more sincere. This portfolio is not what they make it out to be. This is the 7th day of straight losses...the money you can't affort to lose...my a$$
I'm sorry for the losses but I really don't plan to run. I can appreciate that this is a strange market and while it adjusts the PP will have some short term stagnation. I don't plan to look at it daily or even weekly, I run a business and have a family, I'd rather enjoy life.
...and now that the plane has crashed, what do you say Mr. T?

If the PP were a 10 hour international flight, budd would be the guy sitting next to you who turns to you every 30 minutes and says: "I'm pretty sure the plane is about to crash."
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
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Re: New PPer needs guidance.

Post by LC475 » Fri Jun 05, 2015 1:27 pm

buddtholomew wrote:
Matthew19 wrote:
buddtholomew wrote: Run as far away as fast as possible...I could not be more sincere. This portfolio is not what they make it out to be. This is the 7th day of straight losses...the money you can't affort to lose...my a$$
I'm sorry for the losses but I really don't plan to run. I can appreciate that this is a strange market and while it adjusts the PP will have some short term stagnation. I don't plan to look at it daily or even weekly, I run a business and have a family, I'd rather enjoy life.
That is the correct perspective and your philosophy aligns well with the composition of the portfolio.
See, he was just testing you!  You passed.  ;)
Last edited by LC475 on Fri Jun 05, 2015 1:30 pm, edited 1 time in total.
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MediumTex
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Re: New PPer needs guidance.

Post by MediumTex » Fri Jun 05, 2015 1:36 pm

buddtholomew wrote:
MediumTex wrote:
Matthew19 wrote: I'm sorry for the losses but I really don't plan to run. I can appreciate that this is a strange market and while it adjusts the PP will have some short term stagnation. I don't plan to look at it daily or even weekly, I run a business and have a family, I'd rather enjoy life.
...and now that the plane has crashed, what do you say Mr. T?

If the PP were a 10 hour international flight, budd would be the guy sitting next to you who turns to you every 30 minutes and says: "I'm pretty sure the plane is about to crash."
I didn't realize the plane had crashed.  What makes you say that?

Is there something unusual about the PP's recent performance?
Only strength can cooperate. Weakness can only beg.
-Dwight Eisenhower
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