Gyroscopic Investing

Cortopassi wrote:

Libertarian666 wrote:

I Shrugged wrote:I seldom look at my PP or its components.

I guess because my buy in of gold was below 800, I see it differently. If the current prices are waffling back and forth between a paper loss and gain, I can see how that would keep you worked up. I am in gold for the long, long run.

My average basis is about $400. Maybe that makes a difference.

Aarghh...

There were quite a few years when that didn't look so good, while the price was dropping. I.e., from the peak in 1980 to the low around 2000.

I still have some gold from the 1970's that I'm probably going to sell (and rebuy) this year because I have a lot of unused capital gains space due to having virtually no taxable income at present. Why not use the opportunity to reset my basis at $1300 instead of $200 or whatever it currently is?

Well...that didn't last long...but I'm not looking, right?

Same crap Corto...we have to re-balance when gold and treasuries rise in value.

When the day/year comes that I am able to rebalance OUT of gold because it has risen to a 140% band is the day I will stop worrying about it as an asset. I don't see that coming very soon, but you never know.

That will be a good day, but also one where the worry will shift to why is the stock market continually going down. Nah, that'll never happen.

Seriously, daily moves in gold and treasuries far exceed any volatility that I have witnessed in equities over the last 7-8 years.
I can almost guarantee that when stocks enter their decline, gold and treasuries will follow as well.

Yeah, if the same volatility existed in the market, that would probably cause major problems.

Both down over 1% right now, the double whammy always hurts.

Today I start removing methods of me accessing quick views on my accounts. Not worth it.

buddtholomew wrote:Seriously, daily moves in gold and treasuries far exceed any volatility that I have witnessed in equities over the last 7-8 years.
I can almost guarantee that when stocks enter their decline, gold and treasuries will follow as well.

Then you shouldn't have any gold, or treasurys for that matter.
If you don't get any advantage from holding either of those, just go 100% stocks.

Libertarian666 wrote:

buddtholomew wrote:Seriously, daily moves in gold and treasuries far exceed any volatility that I have witnessed in equities over the last 7-8 years.
I can almost guarantee that when stocks enter their decline, gold and treasuries will follow as well.

Then you shouldn't have any gold, or treasurys for that matter.
If you don't get any advantage from holding either of those, just go 100% stocks.

Yeah that's a great idea, I think I'll do that.
There's a rhythm or pattern to the portfolio assets in the short term that is difficult to ignore.
Who amongst us has not witnessed gold and treasuries running up until the event and then declining shortly thereafter.

buddtholomew wrote:

Libertarian666 wrote:

buddtholomew wrote:Seriously, daily moves in gold and treasuries far exceed any volatility that I have witnessed in equities over the last 7-8 years.
I can almost guarantee that when stocks enter their decline, gold and treasuries will follow as well.

Then you shouldn't have any gold, or treasurys for that matter.
If you don't get any advantage from holding either of those, just go 100% stocks.

Yeah that's a great idea, I think I'll do that.
There's a rhythm or pattern to the portfolio assets in the short term that is difficult to ignore.
Who amongst us has not witnessed gold and treasuries running up until the event and then declining shortly thereafter.

It's actually very easy to ignore those patterns, or to consider them irrelevant.

The latter is what I do, and it saves me a lot of work in posting here about being upset whenever asset prices go down.

By that measure everything is irrelevant.
So you see the pattern too.

buddtholomew wrote:By that measure everything is irrelevant.
So you see the pattern too.

Sort of irrelevant, yeah. I complain, but there are no better alternatives (for me and my makeup)!

100% in stocks? Great for the past 8 years, but who knew?
100% in gold? Depending on purchase date, you are comfortably ahead, near dead even, or severely under water. Who knew?
Etc, etc.

A slightly tweaked PP is still optimal, for me, so much that I plan on buying Craig's and Harry's books for my daughters at some point and hope they follow some version of it for their assets.

And not be as freaking anal about checking it all the time like I do.

As you know I've been selling gold for SCV as mentioned above. I don't want to have to manage the portfolio this closely but you can see the money coming out of gold and treasuries so visibly its almost foolish to just let it be...

buddtholomew wrote:As you know I've been selling gold for SCV as mentioned above. I don't want to have to manage the portfolio this closely but you can see the money coming out of gold and treasuries so visibly its almost foolish to just let it be...

Then close your eyes and don't let your pattern seeking and emotions rule your finances. It's dangerous.

I bought a handful of coins just before the plummet, when spot was ~1299. Whatever.

Cortopassi wrote:

buddtholomew wrote:By that measure everything is irrelevant.
So you see the pattern too.

Sort of irrelevant, yeah. I complain, but there are no better alternatives (for me and my makeup)!

100% in stocks? Great for the past 8 years, but who knew?
100% in gold? Depending on purchase date, you are comfortably ahead, near dead even, or severely under water. Who knew?
Etc, etc.

A slightly tweaked PP is still optimal, for me, so much that I plan on buying Craig's and Harry's books for my daughters at some point and hope they follow some version of it for their assets.

And not be as freaking anal about checking it all the time like I do.

I started a smallish PP-inspired Roth for our 19-year-old daughter after she made some money in 2016. The percentages are hard to get right because it's only a few thousand dollars but that is fine. We'll add to it over the next three years when she is still in college. When she is out on her own making real money, she can see how this has worked out so far and decide if she wants to continue investing this way.

Cortopassi, I know you didn't ask for my opinion, but in your shoes I would just keep accumulating and not worry so much about current balances. I'm sure you intellectually understand that these dips are good in the long run because you get more shares, ounces or whatever with your new contributions.

What I have come to realize is that it's hard for me to be active on this forum without being tempted to check balances. Damn!

I haven't looked the entire day, on purpose.

But I did just look, and things are up a little overall.

Would it have been worth the 0.12% it has gone up by me checking a dozen times? No.

Yes, I do and will just keep on accumulating, my only question on it is my cash % will be at 140% shortly, and it will happen before the year is out. So do I rebalance on that, or wait for Jan?

I want to start the same for my daughters and am accumulating some reading material for them.

Just bought at $1280

ochotona wrote:Just bought at $1280

Wow, I thought you were done for some reason. You must have a lotta gold.

dualstow wrote:

ochotona wrote:Just bought at $1280

Wow, I thought you were done for some reason. You must have a lotta gold.

Just 10%. Not 25%. Over the next five years I will slowly swap ETF in IRA for physical gold. Like-for-like, so not price sensitive. Just hope I can finish up before ETFs exhibit any weird tracking errors with gold metal.

I bought Gold yesterday at market close as well.
Re-balanced out of SCV and back into IAU.
I am only managing around the edges to make it seem like I am doing something
SPY/IJS, IAU, TLT and Cash 28%, 26%, 21% and 23%

I'm waiting for 1250....

I lost my gold in an accident with a scary, pan-dimensional clown hiding in a sewer inlet.

Cortopassi wrote:I'm waiting for 1250....

It's a crazy market! $100 swing in days!

Yes, here I am again not looking at gold going down.

Does the stock market ever stop going up? I am just going to move my net worth into short term SPY calls....