LOVING TLT

Discussion of the Bond portion of the Permanent Portfolio

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sk55
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LOVING TLT

Post by sk55 »

i love how TLT moves up sneakingly and steadly with all this turmoil.

helps me sleep at night...
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buddtholomew
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Re: LOVING TLT

Post by buddtholomew »

Agreed, but don't get married to the investment. If the time comes to rebalance, rebalance.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
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ochotona
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Re: LOVING TLT

Post by ochotona »

TLT can bite. IEF not as volatile.
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MediumTex
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Re: LOVING TLT

Post by MediumTex »

ochotona wrote: TLT can bite. IEF not as volatile.
EDV is the one with the bite.

TLT just nibbles.
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dualstow
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Re: LOVING TLT

Post by dualstow »

ochotona wrote: TLT can bite. IEF not as volatile.
IEF is variable portfolio material only.
I'm not against it. I bought  some for my wife. But, she doesn't run a permanent portfolio.
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sk55
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Re: LOVING TLT

Post by sk55 »

MediumTex wrote:
ochotona wrote: TLT can bite. IEF not as volatile.
EDV is the one with the bite.

TLT just nibbles.

MT whats the difference betweend TLT and EDV? 
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Xan
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Re: LOVING TLT

Post by Xan »

EDV comprises zero-coupon LTTs.  I think the maturity is also a bit longer that TLT.  That all adds up to more volatility.
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ochotona
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Re: LOVING TLT

Post by ochotona »

A relative bought some EDV and was not happy immediately after January 30 2015.
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buddtholomew
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Re: LOVING TLT

Post by buddtholomew »

Ocho, I wouldn't hold any of the PP assets in isolation, including LTT's.
Also, as part of a 4x25PP allocation, 50% LTT's and 50% STT's/Cash (barbell) reduces FI duration to approximately 8 years.
IEF duration is 7.3 years, so not really too far off.
I prefer holding the barbell over the bullet as I like holding a lot of cash.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
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Kriegsspiel
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Re: LOVING TLT

Post by Kriegsspiel »

buddtholomew wrote: Ocho, I wouldn't hold any of the PP assets in isolation, including LTT's.
Also, as part of a 4x25PP allocation, 50% LTT's and 50% STT's/Cash (barbell) reduces FI duration to approximately 8 years.
IEF duration is 7.3 years, so not really too far off.
I prefer holding the barbell over the bullet as I like holding a lot of cash.
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