Gyroscopic Investing

Another day or two like this and the PP will be beating the S&P500 again.

[img width=600]https://i.imgur.com/AmMpoIA.png[/img]

Regardless, a >7% real return is pretty damn good. 10/10 A++ would invest again.

Pointedstick wrote: 10/10 A++ would invest again.

Hah!

Dec 1, 2014 :: 2,058
Dec 1, 2015 :: 2,052
S&P today :: 2,012

Not sure how to calculate precisely how the pp is doing, but is it time to revive this thread?

And is it a good time for all those who have strayed away from the PP to come home?

dualstow wrote: Dec 1, 2014 :: 2,058
Dec 1, 2015 :: 2,052
S&P today :: 2,012

Not sure how to calculate precisely how the pp is doing, but is it time to revive this thread?

I like a mathematical challenge.  First up, S&P500:

From Dec 31, 2014 (2058.90) to today (2012.37) = -2.260%

Next, PP components (a four-ETF version; adjusted closes, so dividends reinvested):

VTI: from 104.52 to 103.24 = -1.225%
TLT: from 123.03 to 123.76 = +0.593%
GLD: from 113.58 to 103.11 = -9.218%
SHY: from 84.04 to 84.59 = +0.654
Total PP = -2.299%

Looks like the S&P500 still wins by a hair.

TennPaGa wrote:

Pet Hog wrote: I like a mathematical challenge.  First up, S&P500:

From Dec 31, 2014 (2058.90) to today (2012.37) = -2.260%

Next, PP components (a four-ETF version; adjusted closes, so dividends reinvested):

VTI: from 104.52 to 103.24 = -1.225%
TLT: from 123.03 to 123.76 = +0.593%
GLD: from 113.58 to 103.11 = -9.218%
SHY: from 84.04 to 84.59 = +0.654
Total PP = -2.299%

Looks like the S&P500 still wins by a hair.

I think you've left out relevant dividends in both of these.

Yes and no.  I used adjusted closes for the ETFs, but it's true I am not comparing the PP with SPY (therefore, dividends) but rather with the S&P500 (no dividends).  Your chart doesn't include today's almost 2% drop in SPY, while the PP was almost flat.  SPY's total return is now negative ytd (from 202.58 to 201.88 = -0.346%), but still higher than VTI's (-1.225%).  So, 100% stocks (VTI or SPY) still beats the PP this year by at least 1%.

Incidentally, anyone can beat the S&P500 consistently, year after year, just by holding SPY -- as long as its dividend (currently about 2%) stays above its expense ratio (currently 0.09%).

d'oh!

If we are comparing PP to a 100% stock portfolio, then I think we should use VTI for both portfolios so that we are comparing apples to apples.  It looks to me that as of 12/12/15, VTI is =.3% and PP is -2.4%.

P.S.  I am pro-PP and continue to utilize it.

finster869 wrote: If we are comparing PP to a 100% stock portfolio, then I think we should use VTI for both portfolios so that we are comparing apples to apples. 

I think that's fair.
Of course I'd rather be up 0.3% than down more than 2% but at least the ride has been far less wild.

How is it going now? I see the market is down and gold is up...

Libertarian666 wrote: How is it going now? I see the market is down and gold is up...

The S&P is down to 2005. Wow.

Libertarian666 wrote: How is it going now? I see the market is down and gold is up...

We'll see, but I thought no PP has a bit more catching up to do. LTT might pass SP500 though.