The GOLD scream room

[Ugly_Bird]

The portfolio is a massive waste of time and energy...

Huh?
To me, only time and energy I waste on PP when reading your complains. :-)
Kidding aside, it is quite opposite for me, I personally didn't spend much time on energy on PP at all.
Only when had it set up and then rebalanced for the first (and so far the only) time.

[buddtholomew]

No Buddburst today

[dualstow]

No Buddburst today

Looks like gold and TLT are going down...not as fast as stocks.

There's a boglehead thread about John Bogle saying it makes sense to sell stocks down 5 or 10% if it helps one sleep. Hmm. This is in the context of his belief that we're not going to see great market returns in the years to come.

For those who are 4x25 this might be a great opportunity to do nothing. Have another pina colada.

[PP67]

FIW According to Bloomberg's Billionaire Index, The world’s wealthiest people have, in aggregate, lost 2 percent of their wealth so far this year...

[Cortopassi]

Well that was an interesting day.

If the pattern holds from recent history, tomorrow will be a spectacular up day for stocks, while bonds and gold will be trashed and the PP slope for the year will continue down.

But I have no better alternative for sure. About the only thing I am considering is going back to a higher % in cash since it is paying near 2% now at Ally. 25% in cash would have been a good buffer today.

Days like this certainly make me wonder about all the little tweaks I have made over the past couple years, which helped last year but are hurting this year.

[buddtholomew]

The PP (or any balanced portfolio for that matter) is not immune to rising interest rates and tighter money.

Corto, this time is different
I see further declines in stocks as an 800 point drop in the DOW will panic most investors to sell.
Rates are going higher hell or high water and will exacerbate the declines in stocks even further than expected.
My guess is that rates pull-back in late October, equities stabilize and gold begins its ascent.
Probably will happen the other way then...

[dualstow]

I see further declines in stocks as an 800 point drop in the DOW will panic most investors to sell.

I agree. Anything could happen, but I feel tomorrow will see another slaughter or else a partial recovery, leading the semi-panicked to say ok, I recouped some of Wednesday’s losses and to sell by 3:00pm EST, i.e. an afternoon slaughter.

[eufo]

Is it wrong I love the slaughter days? It hurts my portfolio too, but it's interesting at least.

[jhogue]

Sage advice from Alexander Hamilton, The Federalist, No. 12:

“The prosperity of commerce is now perceived and acknowledged, by all enlightened statesmen, to be the most useful as well as the most productive source of national wealth; and has accordingly become a primary object of their political cares. By multiplying the means of gratification, by promoting the introduction and circulation of the precious metals, (those darling objects of human avarice and enterprise), it serves to vivify and invigorate the channels of industry, and to make them flow with greater activity and copiousness. The assiduous merchant, the laborious husbandman, the active mechanic, and the industrious manufacturer, all orders of men look forward with eager expectation and growing alacrity to this pleasing reward of their toils.”



In other words, stop looking through the wrong end of the telescope. Buy gold for the long run.

[dualstow]

Is it wrong I love the slaughter days? It hurts my portfolio too, but it's interesting at least.

Atl least we don’t have to wonder anymore.

[Cortopassi]

As expected, no stock selloff follow through.

[Cortopassi]

What the hell?