YTD Performance for PERM & PRPFX

Discussion of funds that implement the Permanent Portfolio strategy

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Ad Orientem
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Re: YTD Performance for PERM & PRPFX

Post by Ad Orientem » Wed Jan 07, 2015 11:58 pm

MediumTex wrote:
Ad Orientem wrote:
MachineGhost wrote: 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.
I entirely agree. To be honest, I have become profoundly disenchanted with PRPFX over the last couple of years. On a side note, it is nice to see you MT. The forum has missed you.
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MachineGhost
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Re: YTD Performance for PERM & PRPFX

Post by MachineGhost » Thu Jan 08, 2015 12:12 am

Ad Orientem wrote: The forum has missed you.
Amen!

But, I realy fail to see why anyone would even consider the PRPFX.  It is pre-PP it is NOT the PP.  I believe it should be banned from talking about on here so not as to mislead new investors (just kidding, give my track record...).
"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: YTD Performance for PERM & PRPFX

Post by MediumTex » Thu Jan 08, 2015 2:21 am

MachineGhost wrote:
Ad Orientem wrote: The forum has missed you.
Amen!

But, I realy fail to see why anyone would even consider the PRPFX.  It is pre-PP it is NOT the PP.  I believe it should be banned from talking about on here so not as to mislead new investors (just kidding, give my track record...).
I never liked the over-exposure to commodities in PRPFX.  I always thought that the inflationists of the 1970s simply didn't understand how the commodities markets worked over longer periods--i.e., they always cycle between boom and bust because every boom is followed by an increase in production that sets the stage for the next bust.  This process seemed to have simply eluded them, or maybe they thought that all paper currencies were going to just collapse simultaneously, which is naive in a world where paper currencies are actually supported nicely by large standing armies.

The Swiss franc exposure was never a great idea and it became completely obsolete when Switzerland made it clear a few years back that it wasn't going to allow its currency to appreciate in a way that hurt its exporters too badly.

The silver exposure in PRPFX is also misguided, since silver and gold are subject to very different market forces.

The lack of long bond exposure in PRPFX misses an important component of the protection offered by the PP, and this has always been a flaw in PRPFX dating to its inception, which occurred just as the greatest bull market in history for LT bonds was starting.

So yes, PRPFX is deeply flawed and in some ways it is the worst imaginable PP simulation because it leans in all of the wrong directions most of the time. 

Buyer beware.

With all that said, the 90% PRPFX/10% EDV mix has done pretty well, thought not as well as the PP.
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Re: YTD Performance for PERM & PRPFX

Post by Khisanth » Wed Mar 18, 2015 2:42 pm

I'm still PRPFX+EDV in my IRA accounts. However, I just took a look at Yahoo Finance and learned that Facebook is one of the top 10 holdings in PRPFX.

I'm -10% in this account.

http://finance.yahoo.com/q/hl?s=PRPFX+Holdings
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Re: YTD Performance for PERM & PRPFX

Post by MachineGhost » Wed Mar 18, 2015 5:41 pm

Khisanth wrote: I'm still PRPFX+EDV in my IRA accounts. However, I just took a look at Yahoo Finance and learned that Facebook is one of the top 10 holdings in PRPFX.

I'm -10% in this account.

http://finance.yahoo.com/q/hl?s=PRPFX+Holdings
Yeah, the manager of the Permanent Funds family has no stick picking skills whatsoever.
"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: YTD Performance for PERM & PRPFX

Post by Reub » Thu Mar 19, 2015 12:37 pm

Khisanth wrote: I'm still PRPFX+EDV in my IRA accounts. However, I just took a look at Yahoo Finance and learned that Facebook is one of the top 10 holdings in PRPFX.

I'm -10% in this account.

http://finance.yahoo.com/q/hl?s=PRPFX+Holdings
FB up over 21% in the past year. Not so bad.
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