Given recent bulls in gold and bonds, would it make sense for those just deploying PP to start with lower percentages of these assets? Maybe something like for those coming from large cash and equity portfolio
15% gold
15% bonds
35% stocks
35% cash
Percentages for those just deploying PP
Moderator: Global Moderator
Re: Percentages for those just deploying PP
If you look at the history of the PP, recently strongly performing assets have a tendency to perform well, not poorly, in the following year. That's part of the reason why, if I'm remembering right, Harry Browne suggested not rebalancing until you hit the 35/15 bands.
If you scour this board, you'll see there's a "relative strength" permanent portfolio suggested as your variable portfolio (or part of it) that overweights the two best assets from the preceding year of the permanent portfolio.
If you scour this board, you'll see there's a "relative strength" permanent portfolio suggested as your variable portfolio (or part of it) that overweights the two best assets from the preceding year of the permanent portfolio.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
Re: Percentages for those just deploying PP
I would stick to the original Harry plan of 25/25/25/25. When I started out LT bonds were high but are lower now. You can never predict which asset class will be in favor.
Re: Percentages for those just deploying PP
I would just follow the recipe.
No need to fix what isn't broken.
No need to fix what isn't broken.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: Percentages for those just deploying PP
Ain't broke so don't fix it. Who's to say that stocks aren't overvalued now? We just don't know.