Stay cool...

General Discussion on the Permanent Portfolio Strategy

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Smith1776
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Re: Stay cool...

Post by Smith1776 » Wed Mar 11, 2020 2:29 pm

dualstow wrote:
Wed Mar 11, 2020 7:23 am
Smith1776 wrote:
Mon Mar 09, 2020 3:24 pm
LOL no. It’s a platform called Wealthsimple. And they’re friggin taking over Canada.
...
Robinhood. I have no interest in infinite leverage or saying “guh” every other sentence. ;D
Wow, another Robinhood outage. Third one in a very short time!
I swear, Robinhood seems like it was coded by a first year computer science student cobbling together his homework assignment 2 hours before it's due.

Putting my life savings into that app? Yikes! :P
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pmward
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Re: Stay cool...

Post by pmward » Wed Mar 11, 2020 2:43 pm

Yeah, seeing as how there are numerous other free commissions providers (all of which get better fills than Robinhood) I think they go under because of this. Robinhood was very popular in the investments Slack at my work, and most people that used it are looking to transfer their assets to another brokerage.
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craigr
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Re: Stay cool...

Post by craigr » Fri Jul 31, 2020 6:04 am

Hi All,

I hope everyone stayed cool and rode things out with some smart re-balancing. It's nice to have a portfolio that doesn't make you panic and do dumb things in a market crash.

YTD and 3yr. charts show the PP is smashing a 60/40 index. Low volatility allows re-balancing into the storm without sweating at night. Solid investing is often more about managing emotions rather than high returns. An investor that can keep their cool will come out on top in the long-run. Low volatility investing like the PP proves its mettle once again.

Hope all are well!
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dualstow
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Re: Stay cool...

Post by dualstow » Fri Jul 31, 2020 9:16 am

So far, so good!
Herman Cain says the virus is under control and there’s nothing to be concerned about
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Xan
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Re: Stay cool...

Post by Xan » Fri Jul 31, 2020 9:35 am

The PP makes it pretty easy to stay cool. Especially when it's doing well.
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sophie
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Re: Stay cool...

Post by sophie » Fri Jul 31, 2020 9:39 am

This month has been incredible for PP owners. But even before this, it was remarkably easy to be a PP investor. During all the market panics this spring & summer, I've been completely unconcerned with how the markets were doing, except that I wanted to make sure I didn't miss a rebalance opportunity.

Thank you Craig and everyone else who introduced us to this wonderful portfolio!
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Re: Stay cool...

Post by mukramesh » Fri Jul 31, 2020 12:46 pm

Hi Craig! Thank you again for your site and book.
YTD results are even better than shown on ETF Replay due to an opportunistic rebalance during the crash ;D . PP is feeling pretty bulletproof.
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Re: Stay cool...

Post by pp4me » Fri Jul 31, 2020 1:08 pm

mukramesh wrote:
Fri Jul 31, 2020 12:46 pm
Hi Craig! Thank you again for your site and book.
YTD results are even better than shown on ETF Replay due to an opportunistic rebalance during the crash ;D . PP is feeling pretty bulletproof.
Interesting point both you and Sophie make about "opportunistic rebalancing". I've heard Craig speak of "mechanical rebalancing" which I took to mean sticking closely to the bands and only rebalancing when they are triggered. I think HB even went so far as to suggest only doing it once per year.

I'm actually tempted to sell off some Gold and Bonds right now since both are at all high times but isn't this just another form of "timing the market".
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Cortopassi
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Re: Stay cool...

Post by Cortopassi » Fri Jul 31, 2020 1:31 pm

pp4me wrote:
Fri Jul 31, 2020 1:08 pm
but isn't this just another form of "timing the market".
Yes.

All time highs are meant to be exceeded eventually, you just don't know when.
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sophie
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Re: Stay cool...

Post by sophie » Fri Jul 31, 2020 2:10 pm

I didn't "opportunistically" rebalance. I did it when I crossed a band. I was watching for when that happened using a google sheet I designed to give the indication, without my having to actually check my portfolio. I remember being a little disappointed though, that I didn't rebalance when stocks hit their low point, as some people here did. However, I would have been rebalancing out of cash into stocks, whereas my rebalance involved moving money from cash and bonds (primarily) and a bit out of gold. In the end I don't think it made a lot of difference.

I'm nowhere near crossing any band right now, so sitting tight as per plan.
mukramesh
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Re: Stay cool...

Post by mukramesh » Fri Jul 31, 2020 2:18 pm

Hi pp4me,

By opportunistic rebalancing, I meant I hit a rebalancing band (15/35) during the crash for stocks on the low side since they crashed so harshly (almost -35%). Completely mechanical but it requires paying attention to your portfolio balances, especially during times of high volatility. No market timing here but I definitely got lucky ;)

I would not sell any Gold or Bonds unless it is part of your mechanical rebalancing plan.


@Sophie: That is exactly what I did, Re: watching my Google sheet daily.
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Re: Stay cool...

Post by pp4me » Fri Jul 31, 2020 2:25 pm

I've been in the PP for about 12 years now and I have never hit a re-balancing band. Not even close as far I can remember. I have both re-balanced and let things ride during my yearly checkup however and it would take too much effort on my part to figure out which was the best strategy. And if I did what would be the point? There are no constraints in place requiring the future to behave the same way it has in the past as far as I know.
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