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PP for smaller economies
Posted: Thu Sep 10, 2020 5:10 am
by Hal
Almost a one-size fits all PP.
Use local currency and World TSM & LT Bonds. (Hedged if possible)
For example,
https://www.betashares.com.au/fund/beta ... cy-hedged/
https://www.vanguardinvestments.com.au/ ... /?overview
Try it and see...
Re: PP for smaller economies
Posted: Thu Sep 10, 2020 5:25 pm
by Smith1776
The idea of a world PP is very intellectually enticing to me. (As people on this forum probably already know.)
There aren't a ton of good instruments for the world bond portion of portfolio here in Canada unfortunately.
I also toy with whether or not currency hedging in the gold allocation makes sense. This is probably a foreign concept to U.S. forum members here, but in Canada pretty much all of our gold funds have a currency hedged option. The hedged option delivers the returns of gold that U.S. investors experience but to Canadian investors.
I do wonder how an allocation of gold funds, each hedged to major currencies around the world would perform long-term. I'm highly inclined to say that it's definitely not worth the hassle, time, and expense. I also recognize that it may be self-defeating to link your gold to specific currencies. However, it is an interesting mental exercise.
Re: PP for smaller economies
Posted: Thu Sep 10, 2020 5:34 pm
by Smith1776
P.S. I forgot to add my obligatory "don't forget to factor tilt your equity" comment. So there it is.
Re: PP for smaller economies
Posted: Thu Sep 10, 2020 6:19 pm
by Hal
Smith1776 wrote: ↑Thu Sep 10, 2020 5:25 pm
The idea of a world PP is very intellectually enticing to me. (As people on this forum probably already know.)
There aren't a ton of good instruments for the world bond portion of portfolio here in Canada unfortunately.
I also toy with whether or not currency hedging in the gold allocation makes sense. This is probably a foreign concept to U.S. forum members here, but in Canada pretty much all of our gold funds have a currency hedged option. The hedged option delivers the returns of gold that U.S. investors experience but to Canadian investors.
I do wonder how an allocation of gold funds, each hedged to major currencies around the world would perform long-term. I'm highly inclined to say that it's definitely not worth the hassle, time, and expense. I also recognize that it may be self-defeating to link your gold to specific currencies. However, it is an interesting mental exercise.
Looks like Vanguard read your mind....
https://www.vanguardcanada.ca/instituti ... ex-etf.htm?
Personally, I see gold as "physical wealth" like farmland etc and the rest of the PP as "paper promises". So, I don't hedge my gold to any currency even though the option is there. Marc Fabers portfolio is 50% Physical (Gold/Farmland) and 50% Paper (Shares/Bonds-Cash)
Agree its an interesting mental exercise
PS:
https://www.blackrock.com/ca/individual ... rough=true
Re: PP for smaller economies
Posted: Fri Dec 25, 2020 1:17 am
by Smith1776
{ I banned the spammer and am deleting all the reported posts
- DS }
Re: PP for smaller economies
Posted: Fri Dec 25, 2020 10:19 am
by yankees60
I am almost done seeing all 20 of this new person's messages.
Cannot understand why some dormant topics were chosen rather than all the active ones?
Vinny