Desert Portfolio vs PP
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Desert Portfolio vs PP
Any ideas as to why the Desert Portfolio as outeperformed the PP so handily since 1983? Is it strictly the drag of 25% gold vs 10% gold?
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Re: Desert Portfolio vs PP
I could be wrong, but I believe that a Desert Portfolio generates more taxable interest and dividends than an HBPP. The charts do not account for that real world problem.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
Re: Desert Portfolio vs PP
Since 1983 we have had the greatest bond and stock bull markets in history. So a portfolio that had more bonds and stocks won over that period. The question to ask, is 1983 to 2019 the exception or the rule?
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WhiteElephant
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Re: Desert Portfolio vs PP
There has been some discussion about treasury duration for the Desert Portfolio, but I think it the duration was 5 years instead of 10. That would reduce the outperformance somewhat.
Re: Desert Portfolio vs PP
The desert portfolio... particularly one with factor tilling in the equity, is what I consider to be a gateway drug to the PP.
25% gold is too bitter a pill to swallow for many people. 10% just gets them in the door.
So I guess 10% gold is marijuana. 25% gold is hardcore Breaking Bad levels of drug abuse?
25% gold is too bitter a pill to swallow for many people. 10% just gets them in the door.
So I guess 10% gold is marijuana. 25% gold is hardcore Breaking Bad levels of drug abuse?