Gyroscopic Investing

It is mechanical, MT. I am on my way to a 10% EDV holding to compliment my PRPFX holding. The recent EDV run-up is just helping me get there that much sooner. 

Today was a nice illustration of how the PRPFX/EDV concept is supposed to work.

The HB PP was up about 1%.

PRPFX was down .34%, while EDV was up 4.96%.

So the combo would have been up about .8 pct at 9:1?

I'm liking the combination greatly! PRPFX up 0.53% today. EDV up another 1.10%.

Reub wrote: I'm liking the combination greatly! PRPFX up 0.53% today. EDV up another 1.10%.

Hopefully you will like it on the bad days as well.

Those are the ones where you can get in trouble.

MT, I was 90% in the stock market in 2008 when it crashed and I took that long ride down and back up. Watching a properly balanced PP move is like a ballet next to that.

Hey, Reub, as Dr. Phil would say, how's that EDV purchase working out for you?

I've been on the fence about adding a touch of EDV (have restrictive 401k issues), and have been sighing a lot today about not pulling the trigger.

The EDV has been smoothing out some of my PRPFX losses. Just as MT predicted.

I am kicking myself for not doing 10% EDV to pair with my PRPFX purchase last week (IRA)

Do I go and sell 10% of PRPFX now so that I can pick up EDV? ;-(

I would do it in light of the fact that PRPFX holds a 10% holding in Swiss Francs, which are now pegged to the Euro. This in my opinion is a game changer for PRPFX. They need to change their allocation so that they have some deflation protection, as a larger holding of TLT or EDV would accomplish. As a large holder of PRPFX, I sold some yesterday and purchased some TLT to go along with my previous EDV holding. I am still waiting for the Permanent Portfolio Fund to answer my recent emails on this subject.

Don't hold your breath; I wrote them a while ago about the same thing.  No answer.

longeyes wrote: Don't hold your breath; I wrote them a while ago about the same thing.  No answer.

The Swiss Frac will ultimately be a wild card.  The Japanese do the same nonsense with the Yen, and it's continuted to strengthen against the dollar in spite of everything.  I wouldn't worry too much about it, but I would definitely get some long term bond exposure if you position in PRPFX is sizable.

Reub wrote: The EDV has been smoothing out some of my PRPFX losses. Just as MT predicted.

MT for Pres.

Currently holding both PRPFX and HB PP in separate accounts I saw the light last week when the HB PP went down only a little and PRPFX went down a lot. Sure enough EDV would have smoothed it out so I bought some the next day.

This is from Yahoo:

http://www.thestreet.com/_yahoo/story/1 ... &cm_ite=NA

Notice the  VWINX ranking. I have always thought well of it, own a good bit; outperformed PRPFX slightly YTD.

jackh wrote: Sure enough EDV would have smoothed it out so I bought some the next day.

Another way to smooth it out (kind of) is to simply buy it on dips.  If it reaches a high and then pulls back 2 or 3 percentage points, just buy more.  

I guess that doesn't really "smooth it out," but it will increase your yield.