Portfolio for European investor

General Discussion on the Permanent Portfolio Strategy

Moderator: Global Moderator

Post Reply
Someguy
Junior Member
Junior Member
Posts: 8
Joined: Wed Sep 06, 2017 7:54 am

Portfolio for European investor

Post by Someguy » Thu Aug 15, 2019 6:35 am

I am an European citizen, with a 2.75% mortgage (35 years pending). I need safety and I need euros (for paying the mortgage), even if euro is cheap.

I finally decided to begin this portfolio:


STOCKS (30%)
- Total World


BONDS (30%)
- Vanguard 20+ Year Euro Treasury Index Fund Institutional EUR Accumulation
- State Street Euro Core Treasury Bond Index

Vanguard is around 40% AAA / 60% AA (France, Germany, Belgium, Netherlands, Australia), with average maturity of 28.5 years. State Street is 60% AAA / 40% AA (France, Germany, Netherlands), with average maturity of 10 years. I will combine them (4/1), for getting around 25 years.


CASH (30%)
- Insured saving account


GOLD (10%)


What do you think? Am I missing something?
User avatar
europeanwizard
Full Member
Full Member
Posts: 97
Joined: Sun Jun 04, 2017 4:06 am
Location: The Netherlands, Europe

Re: Portfolio for European investor

Post by europeanwizard » Thu Aug 22, 2019 1:52 pm

Looks good to me. Do you have a particular reason to go for 30/30/30/10 instead of 25% each?

Personally, I don't stick to 25% each either, I've got a lot more cash but I'm accumulating and am aiming for those percentages.
Someguy
Junior Member
Junior Member
Posts: 8
Joined: Wed Sep 06, 2017 7:54 am

Re: Portfolio for European investor

Post by Someguy » Thu Aug 22, 2019 5:31 pm

europeanwizard wrote:
Thu Aug 22, 2019 1:52 pm
Looks good to me. Do you have a particular reason to go for 30/30/30/10 instead of 25% each?

Personally, I don't stick to 25% each either, I've got a lot more cash but I'm accumulating and am aiming for those percentages.
There are two reasons:

- A lot of people express that gold is less useful for Europan PP than for USA PP.
- i would pay taxes for selling gold, but I can rebalance stocks, bonds and cash (using short-term bonds as cash for rebalancing) without paying taxes.
pmward
Executive Member
Executive Member
Posts: 407
Joined: Thu Jan 24, 2019 4:39 pm

Re: Portfolio for European investor

Post by pmward » Thu Aug 22, 2019 6:03 pm

Someguy wrote:
Thu Aug 22, 2019 5:31 pm

- A lot of people express that gold is less useful for Europan PP than for USA PP.
As far as I'm aware, gold has been working just as well as it should for EU investors with all the financial repression going on over there lately. Gold has returned more to you than it has to us the last few years. So I would personally not come to this conclusion.
Post Reply