PP without cash

A place to talk about speculative investing ideas for the optional Variable Portfolio

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jason
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PP without cash

Post by jason » Sat May 14, 2022 4:04 pm

I think I've seen the PP without cash called the "juiced Permanent Portfolio." 1/3rd stock market, 1/3 gold, 1/3 LTTs. Historically is appears to have outperformed the PP by 1%+ CAGR. And the volatility and drawdowns aren't too bad. Have others here considered this? Is there already a discussion thread on this?
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Hal
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Re: PP without cash

Post by Hal » Sat May 14, 2022 5:52 pm

If I were going cashless, personally this would be my approach.
1. 50/50 Stock/Bonds as per Ben Graham
2. Add Gold for minimum volatility as per BelangP

Already had the allocations memorised for the Pacific Peso (AUD) 8)
Edit: Results for USA 24% Gold, 38% TSM, 38% LTT
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USA cashless 24% Gold 50 50 TSM LTT.png
USA cashless 24% Gold 50 50 TSM LTT.png (116.76 KiB) Viewed 129 times
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Screen Shot 2022-05-15 at 8.45.33 am.png (175.29 KiB) Viewed 159 times
Screen Shot 2022-05-15 at 8.44.49 am.png
Screen Shot 2022-05-15 at 8.44.49 am.png (146.38 KiB) Viewed 159 times
Aussie GoldSmithPP - 25% PMGOLD, 75% VDCO
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jason
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Re: PP without cash

Post by jason » Wed May 18, 2022 4:08 pm

Hal wrote:
Sat May 14, 2022 5:52 pm
If I were going cashless, personally this would be my approach.
1. 50/50 Stock/Bonds as per Ben Graham
2. Add Gold for minimum volatility as per BelangP

Already had the allocations memorised for the Pacific Peso (AUD) 8)
Edit: Results for USA 24% Gold, 38% TSM, 38% LTT
Thanks. How did you come up with 24/38/38? The idea of being heavy stock market and heavy LTT right now is pretty scary. More scary that at any time it would have been in the past. We are experiencing a severe situation with inflation with the Fed promising to jack up rates. Seems like that's very high risk for bonds, and also for stocks. Gold seems safest. Obviously, if I liked market timing strategy, I wouldn't be doing the PP. But going extra heavy on stocks and LTTs feels scary.
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