PP investors--stay the course

[buddtholomew]

I continue to doubt the PP and then all of a sudden it begins to work as expected. I recall a comment from Craig to the effect that the PP works like a rudder on a ship. Its a great analogy.

[OverTaxed]

Outside of the first few days, my PP has been down every single day since I started it earlier this year. I am currently down 3%.

[Reub]

I'm guessing that it was up about 1.5% today, halving your paper loss?

[Shadow]

Outside of the first few days, my PP has been down every single day since I started it earlier this year. I am currently down 3%.

What a like about the PP is that it is basically a defense first investing strategy. Protecting you against catastrophic loss during any economic cycle, in effect saving you from yourself. Epic gains are not what HB intended

[OverTaxed]

I'm guessing that it was up about 1.5% today, halving your paper loss?

I am invested in FLBIX, FSTMX, and IAU and I don't track day over day movements so I can't say. I purchased and read the new book, so I should know better, right?  Unfortunately, it's still frustrating having started my PP in early May and having several months straight in the red right after. Those kind of results just don't provide a lot of confidence as a new(ish) investor.

[frommi]

Be prepared for more pain when QE finally stops. And it will someday, its only a matter of when not if.
Currently it looks like all assets have a little synchronized, which is really bad for the PP. (Because whats the purpose of diversification?)
I can`t really see how 100% stocks can fail in the next 12 month, because as long as QE is running stocks will run up. And when it stops this means the economy is running on full steam. (otherwise the FED won`t stop it). But ignore me, i am just a silly speculator. 

[Pointedstick]

I can`t really see how 100% stocks can fail in the next 12 month, because as long as QE is running stocks will run up.

let's come back in a year and see how well the prediction has held up. 

[Libertarian666]

Be prepared for more pain when QE finally stops. And it will someday, its only a matter of when not if.
Currently it looks like all assets have a little synchronized, which is really bad for the PP. (Because whats the purpose of diversification?)
I can`t really see how 100% stocks can fail in the next 12 month, because as long as QE is running stocks will run up. And when it stops this means the economy is running on full steam. (otherwise the FED won`t stop it). But ignore me, i am just a silly speculator. 

IMO, they will stop only when it doesn't matter because no one wants their funny money any more.

[dualstow]

I am invested in FLBIX, FSTMX, and IAU and I don't track day over day movements so I can't say. I purchased and read the new book, so I should know better, right?  Unfortunately, it's still frustrating having started my PP in early May and having several months straight in the red right after. Those kind of results just don't provide a lot of confidence as a new(ish) investor.

I set up my dad's p.p. at an untimely...time, and it's been below breakeven most of the time.
I'm glad he's being patient with me.

[dragoncar]

I am invested in FLBIX, FSTMX, and IAU and I don't track day over day movements so I can't say. I purchased and read the new book, so I should know better, right?  Unfortunately, it's still frustrating having started my PP in early May and having several months straight in the red right after. Those kind of results just don't provide a lot of confidence as a new(ish) investor.

I set up my dad's p.p. at an untimely...time, and it's been below breakeven most of the time.
I'm glad he's being patient with me.

Haha same here although I think he missed a rebalance

[Straight Ays]

The way the market has been acting convinced me to go even more "pure" with PP.  I just bought my first I bond and my first actual 30 year bond (through a broker, so not 100% pure).  And I'm planning on continuing buying bond direct from here on out.  I was getting nervous holding TLT and EDV only.  By buying the bonds directly I felt more diversified.  I guess because they aren't an ETF.  As the original post said, it's a litmus test and I have my answer. 

[Pointedstick]

It appears to me that today the PP beat both the SP500 index and a 60/40 portfolio.

[buddtholomew]

I am honored to report that my PP is in the black (green) by .10% after today's performance. I finally noticed that the YTD conditional formatting color did not match the other green values in my spreadsheet.  It had always been red. 

[buddtholomew]

easy come, easy go. Back in the red. Board has been awfully quiet lately...

[Bean]

easy come, easy go. Back in the red. Board has been awfully quiet lately...

The amount of oversight in both time and brainpower to spend watching it could earn you money elsewhere.  The point of an investment portfolio is free time, if you want to micro manage it, invest in yourself and go buy a business and run it.

[MediumTex]

easy come, easy go. Back in the red. Board has been awfully quiet lately...

Dang!

I missed celebrating with you yesterday.

[buddtholomew]

easy come, easy go. Back in the red. Board has been awfully quiet lately...

Dang!

I missed celebrating with you yesterday.

We are sure to have another opportunity to celebrate soon.

Bean, what makes you think that I am not a small business owner; operating one's own business is not for everyone and has nothing to do with checking investment returns. I do agree that checking less frequently is better for your health.

[dragoncar]

easy come, easy go. Back in the red. Board has been awfully quiet lately...

The amount of oversight in both time and brainpower to spend watching it could earn you money elsewhere.  The point of an investment portfolio is free time, if you want to micro manage it, invest in yourself and go buy a business and run it.

It takes about 30 sec to check the portfolio, and another 30 sec to complain here.  It's not very time consuming, but it is somewhat cathartic.

[Bean]

I have no idea if my portfolio went up or down today, that is pretty relaxing.

Seriously though, you trusted enough to invest in the PP and should have set your exit criteria on entry.  Then you stick to it, unless there the reason for starting is gone or a need arises to adjust your exit criteria.

Was one of your reason for the PP, that it was worry free?  Because any crazy scenario I can come up with, the PP is safer than most other portfolios out there, while returning a comparable CAGR to other choices.

[buddtholomew]

I have no idea if my portfolio went up or down today, that is pretty relaxing.

Seriously though, you trusted enough to invest in the PP and should have set your exit criteria on entry.  Then you stick to it, unless there the reason for starting is gone or a need arises to adjust your exit criteria.

Was one of your reason for the PP, that it was worry free?  Because any crazy scenario I can come up with, the PP is safer than most other portfolios out there, while returning a comparable CAGR to other choices.

Certainly valid points and I strive to achieve the "zen-like" peace you have mastered.

[dragoncar]

I have no idea if my portfolio went up or down today, that is pretty relaxing.

Seriously though, you trusted enough to invest in the PP and should have set your exit criteria on entry.  Then you stick to it, unless there the reason for starting is gone or a need arises to adjust your exit criteria.

Was one of your reason for the PP, that it was worry free?  Because any crazy scenario I can come up with, the PP is safer than most other portfolios out there, while returning a comparable CAGR to other choices.

I set my complaining threshold higher than my exit position

[Bean]

Certainly valid points and I strive to achieve the "zen-like" peace you have mastered.

I think of the passive investment exercise like boiling water.  No matter how much you watch it, it probably won't go any faster.

[annieB]

"I like to watch"

[Kshartle]

"I like to watch"

Many do but don't admit it.

[dragoncar]

"I like to watch"

Many do but don't admit it.

"It puts the gold portion in physical, or it gets the hose"