Pinwheel vs. PP?
Posted: Sat Oct 30, 2021 11:01 am
In light of numerous recent threads discussing conditions (e.g. unprecedented low interest rates, cryptocurrencies possibly usurping gold) I thought it would be interesting to look at another one of Tyler's brilliant portfolio ideas, the Pinwheel:
https://portfoliocharts.com/2018/10/01/ ... portfolio/
Of course on the surface one might legitimately ask what possible appeal this portfolio might have to those drawn to the PP? It's fairly complex and is quite volatile and subject to large (albeit usually brief) drawdowns. But if you dig down a bit into the thinking behind it it seems to me that the Pinwheel is arguably much more of an "all-weather" allocation than the PP, GB or Dalio's All Seasons. It's thoroughly diversified across countries and asset classes.
Some of the potential advantages I see to the Pinwheel going forward are that its equities are super-diversified (vs. Total Stock Market's complete reliance on a handful of tech stocks), it holds just the right fixed income (intermediate Treasuries and cash) for ballast and inflation protection but doesn't hold enough of them for their negative real returns to drag down the entire portfolio, and holds just enough gold to provide some sequence-of-returns-risk insurance without betting the farm on it.
https://portfoliocharts.com/2018/10/01/ ... portfolio/
Of course on the surface one might legitimately ask what possible appeal this portfolio might have to those drawn to the PP? It's fairly complex and is quite volatile and subject to large (albeit usually brief) drawdowns. But if you dig down a bit into the thinking behind it it seems to me that the Pinwheel is arguably much more of an "all-weather" allocation than the PP, GB or Dalio's All Seasons. It's thoroughly diversified across countries and asset classes.
Some of the potential advantages I see to the Pinwheel going forward are that its equities are super-diversified (vs. Total Stock Market's complete reliance on a handful of tech stocks), it holds just the right fixed income (intermediate Treasuries and cash) for ballast and inflation protection but doesn't hold enough of them for their negative real returns to drag down the entire portfolio, and holds just enough gold to provide some sequence-of-returns-risk insurance without betting the farm on it.
