Gyroscopic Investing

I love the PP...  I do quarterly mini-rebalances from VP into PP whenever my company stock holdings reach 1 year + 1 day - I sell the long term shares and buy whatever asset in the PP is lagging to try to get myself as close to 4x25 as possible.

So, Tuesday, I sold a bunch of company stock and bought a bunch of IAU to rebalance - like clockwork gold is up 3.5% today.  If I had been following my gut I would have been afraid to buy gold, but the PP is a great system.  About 6 months ago I remember buying a bunch of long term bonds, while watching the stock market shoot to the roof.  Who would have thought the bonds would be worth so much more today?  I remember feeling like a sucker buying 2042 maturity bonds with a 3.05% yield...

You can't predict the future, and I honestly think I could make a lot of money just doing the opposite of whatever my gut tells me to do.  Call it the George Constanza portfolio!  http://www.youtube.com/watch?v=cKUvKE3bQlY

But, in the absence of the stones/cajones/guts to follow the George Constanza principle - the PP makes the decision for me and my portfolio keeps making great returns.

Very nice, Storm.  Good discipline rebalancing from VP into PP regularly like that.

Like you, I know that I felt like the Lord of All Dunces buying ~2.95% 30-years last month.  With yields now below 2.7% (!!), the Permanent Portfolio is making me suddenly feel much smarter. 

LOL.... "the George Costanza Principle"

I feel like a genius again; bought $6,000 of S&P 500 index fund yesterday...