YTD Performance for PERM & PRPFX

Discussion of funds that implement the Permanent Portfolio strategy

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Ad Orientem
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YTD Performance for PERM & PRPFX

Post by Ad Orientem » Mon Jun 30, 2014 6:48 pm

PERM is up about 6.8%
PRPFX is up about 5.25%

Source: MSN Money

Hmmm...
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Re: YTD Performance for PERM & PRPFX

Post by barrett » Mon Jun 30, 2014 9:17 pm

I'm often confused why PRPFX would be an acceptable substitute for the PP. Just found this pie chart online:

http://www.permanentportfoliofunds.com/ ... /prpfx.pdf

From what I have read, silver and Swiss Francs were in Harry Browne's original PP but he simplified it and got rid of those two pieces. He used to say on his radio programs (2004 & 2005 more or less) that by that point he considered silver an industrial metal. For what it's worth the Swiss Franc has had a great run versus the US$ over the last 40 years or so. I looked for a chart but could only find one that went back ten years.

Isn't PRPFX only recommended for young investors who don't have enough assets to be able to set up a proper PP?

Anyway, I guess I don't compare the two because there is so much difference in their asset allocations.
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Re: YTD Performance for PERM & PRPFX

Post by dualstow » Tue Jul 01, 2014 10:03 am

I think I'm going to sell my PRPFX today. Just can't justify the expense ratio.

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Re: YTD Performance for PERM & PRPFX

Post by Dieter » Mon Aug 25, 2014 5:15 pm

My PERM is in positive territory now, including reinvested dividends (bought 2 years ago.)
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Re: YTD Performance for PERM & PRPFX

Post by sophie » Sat Oct 04, 2014 10:35 pm

Doesn't sound like either PERM or PRPFX are particularly attractive as one-stop shopping for the PP.  PRPFX has the silver and swiss franc issues, and its stocks are focused on natural resources which haven't done that well compared to the rest of the market.

According to etfreplay, PERM is down 2.8% since inception in 2012, while a 4-ETF PP (VTI, TLT, IAU, SHV) is up 7.6%.  The year to date numbers are 3.2% for PERM, and 5.9% for the 4-ETF PP.

I believe PERM's stock portfolio is also focused on natural resources and real estate.  That can explain some of the discrepancy, but not all of it.  I had considered PERM as an temporizing measure for my HSA until the balance builds up enough to buy 4 ETFs, but I'd rather not put my money into a fund that's doing something I can't understand.
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Re: YTD Performance for PERM & PRPFX

Post by Ad Orientem » Sun Oct 05, 2014 7:35 am

PRPFX is weighted towards an inflationary scenario. But much of the world is mired in a deflationary/ultra low inflation depression.
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Re: YTD Performance for PERM & PRPFX

Post by technovelist » Fri Oct 10, 2014 3:29 pm

sophie wrote: Doesn't sound like either PERM or PRPFX are particularly attractive as one-stop shopping for the PP.  PRPFX has the silver and swiss franc issues, and its stocks are focused on natural resources which haven't done that well compared to the rest of the market.

According to etfreplay, PERM is down 2.8% since inception in 2012, while a 4-ETF PP (VTI, TLT, IAU, SHV) is up 7.6%.  The year to date numbers are 3.2% for PERM, and 5.9% for the 4-ETF PP.

I believe PERM's stock portfolio is also focused on natural resources and real estate.  That can explain some of the discrepancy, but not all of it.  I had considered PERM as an temporizing measure for my HSA until the balance builds up enough to buy 4 ETFs, but I'd rather not put my money into a fund that's doing something I can't understand.
I believe that's one of the main "HB commandments": don't invest in anything [whose business model] you don't understand.
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Re: YTD Performance for PERM & PRPFX

Post by Ad Orientem » Fri Dec 19, 2014 2:49 am

PRPFX looks like it will be lucky to post a break even year, significantly underperforming the 4x25% HBPP.
Last edited by Ad Orientem on Fri Dec 19, 2014 2:52 am, edited 1 time in total.
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Re: YTD Performance for PERM & PRPFX

Post by MachineGhost » Fri Dec 19, 2014 2:09 pm

Ad Orientem wrote: PRPFX looks like it will be lucky to post a break even year, significantly underperforming the 4x25% HBPP.
What about it with the 10% EDV allocation?
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Re: YTD Performance for PERM & PRPFX

Post by Ad Orientem » Fri Dec 19, 2014 6:24 pm

MachineGhost wrote:
Ad Orientem wrote: PRPFX looks like it will be lucky to post a break even year, significantly underperforming the 4x25% HBPP.
What about it with the 10% EDV allocation?
That would help a lot since EDV is up by near 40% YTD. With PRPFX down by almost 8%, if 10% were in EDV your portfolio would still be in the red, but only by about 3%. I am becoming less and less enamored of PRPFX as I see the danger in it's heavy weighting towards an inflationary scenario being spelled out in big red ink numbers.
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Re: YTD Performance for PERM & PRPFX

Post by TennPaGa » Wed Jan 07, 2015 10:18 pm

"Portfolio" is VTI / IAU / TLT / SHY.

PRPFX didn't do very well at all in 2014.  Higher volatility and lower returns compared with the 4 ETF PP.  Yikes.

[img width=700]http://i.imgur.com/r0z6sXS.png[/img]
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Re: YTD Performance for PERM & PRPFX

Post by MediumTex » Wed Jan 07, 2015 11:51 pm

Ad Orientem wrote:
MachineGhost wrote:
Ad Orientem wrote: PRPFX looks like it will be lucky to post a break even year, significantly underperforming the 4x25% HBPP.
What about it with the 10% EDV allocation?
That would help a lot since EDV is up by near 40% YTD. With PRPFX down by almost 8%, if 10% were in EDV your portfolio would still be in the red, but only by about 3%. I am becoming less and less enamored of PRPFX as I see the danger in it's heavy weighting towards an inflationary scenario being spelled out in big red ink numbers.
It would have taken a gutsy person to stick with the 90% PRPFX/10% EDV mix I started talking about a few years ago, but it would have worked out pretty well to help erase the significant blind spot in PRPFX's allocation, though the PP is still clearly a more appealing approach for people who like their sleep.
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