What are people's opinions on changing the stock portion of the PP to something like 20% S&P, 5% miners?
I know we've had this discussion before with dividend paying stocks, tech stocks, foreign stocks, etc., but the miners seem to non-correlate enough that you might be able to squeeze a little bit of a rebalancing premium out of them in the context of the PP.
Thoughts?
Adding the Miners
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Adding the Miners
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Pascal
Pascal
Re: Adding the Miners
Yes I have recently become aware of the low correlation between miners, and oil companies, versus other stocks. As a result have been adding to a UK commodities investment trust (closed end fund) BRCI which is currently undergoing a period of weakness.
Regards
Regards
Re: Adding the Miners
I personally wouldn't do it. Most of the miners are heavily leveraged. Maybe I could stomach 5% (at most) in my VP, but not my PP.
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Ad Orientem
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Re: Adding the Miners
IMHO individual stocks or sector specific indexes belong in the VP. Miners are very volatile and can be affected by a lot of things beyond the price of metals. It could also significantly skew the performance of the equities part of your PP which should do well in times of prosperity but mining stocks might take a hit in such times.
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Re: Adding the Miners
Yeah...I think you're right.Ad Orientem wrote: IMHO individual stocks or sector specific indexes belong in the VP. Miners are very volatile and can be affected by a lot of things beyond the price of metals. It could also significantly skew the performance of the equities part of your PP which should do well in times of prosperity but mining stocks might take a hit in such times.
"All men's miseries derive from not being able to sit in a quiet room alone."
Pascal
Pascal
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MachineGhost
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Re: Adding the Miners
'AdamA wrote: What are people's opinions on changing the stock portion of the PP to something like 20% S&P, 5% miners?
Bad idea. Gold miners don't align with any factor that outperforms the market average.
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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!
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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murphy_p_t
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Re: Adding the Miners
how did that mix perform in Q1?