Has anybody looked into what happens if you don't rebalance the portfolio for an extended period of time? Suppose you went to jail for 10 years? Or slipped into a coma? Or you were abducted by the FARC?
What would PP returns look like without rebalancing?
Just curious.
In A Coma For 10 Years... What Happens To My Permanent Portfolio?
Moderator: Global Moderator
In A Coma For 10 Years... What Happens To My Permanent Portfolio?
"Now remember, when things look bad and it looks like you're not gonna make it, then you gotta get mean. I mean plumb, mad-dog mean. 'Cause if you lose your head and you give up then you neither live nor win. That's just the way it is. "
-
dualstow
- Executive Member
- Posts: 15332
- Joined: Wed Oct 27, 2010 10:18 am
- Location: searching for the lost Xanadu
- Contact:
Re: In A Coma For 10 Years... What Happens To My Permanent Portfolio?
I don't know, but but just prior to entering a ten-year coma, I'd rather be holding the pp than, say, solar panel stocks.
Hey, this would be a great way to not look at my spreadsheets so often.
Hey, this would be a great way to not look at my spreadsheets so often.
RIP OZZY
Re: In A Coma For 10 Years... What Happens To My Permanent Portfolio?
Hedge this uncertainty by investing in healthcare stocks and private correction facility stocks, as you being in a coma and/or in prison will mean a rise in the value of those underlying companies.
Re: In A Coma For 10 Years... What Happens To My Permanent Portfolio?
Hmm. Sounds like an argument for the simple funds approach in a brokerage which does free reinvestment. Then TLT and VTI (or SPY) would reinvest, gold wouldn't need to, and you would probably be low on cash when you woke up.Clive wrote:Simba's backtest spreadsheet takes total gains into account. In practice income wouldn't be reinvested in a total gains like manner so you could end up with lower gains and a large pot of cash.