PP and the Election

General Discussion on the Permanent Portfolio Strategy

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AdamA
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PP and the Election

Post by AdamA » Fri Nov 11, 2016 12:38 pm

It is interesting to me that gold and treasury bonds have responded the most dramatically to the election results.

Any thoughts?
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buddtholomew
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Re: PP and the Election

Post by buddtholomew » Fri Nov 11, 2016 12:42 pm

yeah, its fucked up.
All the gains this year are disappearing before my eyes.
I've sat through more painful drops in gold and treasuries than I ever would have experienced in a 50/50 stock/bond portfolio.
Completely give up...
Last edited by buddtholomew on Fri Nov 11, 2016 12:59 pm, edited 1 time in total.
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AdamA
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Re: PP and the Election

Post by AdamA » Fri Nov 11, 2016 12:58 pm

I just think it's odd that the two "flight to safety" assets are taking losses instead of the stock market, given the uncertainty.
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buddtholomew
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Re: PP and the Election

Post by buddtholomew » Fri Nov 11, 2016 1:02 pm

AdamA wrote:I just think it's odd that the two "flight to safety" assets are taking losses instead of the stock market, given the uncertainty.
Just this week a 4% down day in treasuries coupled with a 3% down day in gold. Oh yeah, don't forget the 4% down day we had 1-2 months ago.

Bullshit.
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AdamA
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Re: PP and the Election

Post by AdamA » Fri Nov 11, 2016 1:27 pm

All of those drops boil down to a 2-3% drop for the portfolio. Are you really that stressed?
flyingpylon
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Re: PP and the Election

Post by flyingpylon » Fri Nov 11, 2016 1:49 pm

AdamA wrote:All of those drops boil down to a 2-3% drop for the portfolio. Are you really that stressed?
Don't forget this is Budd you're talking about. :)
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Cortopassi
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Re: PP and the Election

Post by Cortopassi » Fri Nov 11, 2016 2:12 pm

It is strange, though, that the expected flights to safety are not working as expected by any means.

My gains for the year at the peak are now fully cut in half.

BUT, not that I would have found anyplace else to invest.

We still have had a good year:

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dutchtraffic
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Re: PP and the Election

Post by dutchtraffic » Fri Nov 11, 2016 2:16 pm

Every asset has been going up at the same time, obviously they can and will all drop at the same time as well.
This is just a very minor drop, nothing to panic about at all, what will you do when all 3 assets come crashing down? Don't forget stocks even jumped higher, which were already stupidly overvalued.

This is what you sign up for when you want to invest your money though, if a 1 or 2% drop worries you then you should really not be investing.
What do you do when you are down 60%? Jump from a building?
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AdamA
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Re: PP and the Election

Post by AdamA » Fri Nov 11, 2016 2:20 pm

I am perfectly happy with the PP's performance.

I'm just curious as to what people think is motivating the trends in the various asset classes post election.
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Re: PP and the Election

Post by Cortopassi » Fri Nov 11, 2016 2:31 pm

If you look at the chart, it is interesting that except for the beginning of the year and the last few days that stocks, bonds and gold have all been pretty darn well correlated. Which is great when things go up, not so much on the way down.

It is not the absolute level of drop that worries me. It is the rapidity, and the seeming disconnect between what's supposed to happen.

But then again, I go and read Mish, and see that gold got slammed in the early 80's when inflation was terrible. Inflation up and gold up certainly does not always happen.

The PP is still the best place to be simply because no one knows what the heck is going to happen or how assets will react.
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jason
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Re: PP and the Election

Post by jason » Fri Nov 11, 2016 3:06 pm

I'm actually down about 6% from my all time high this year. About 1/3rd of my investment gains since I started the PP in June 2013 has been wiped out. My CAGR for the past 40 month period has dropped from a peak of about 5% to 3.3%. It's a bummer, but I don't know what else to invest in that is safe. It's tempting to put everything into VTI, but I know the stock marketing is going to crash right after I do that.
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Re: PP and the Election

Post by MachineGhost » Fri Nov 11, 2016 5:30 pm

AdamA wrote:I'm just curious as to what people think is motivating the trends in the various asset classes post election.
Economic growth.
"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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