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Variation of Permanent Portfolio
Posted: Fri Mar 02, 2012 3:49 am
by Odysseusa
Original Permanent Portfolio
SHY
TLT
GLD
VTI
Variation of Permanent Portfolio
40% Bond
SHY (Barclays 1-3 Year Treasury Bond)
PCY (PowerShares Emerging Markets Bond)
TLT (iShares Barclays 20 Year Treasury)
IEF (iShares Lehman 7-10 Year Treasury) or LQD
20% Gold
GLD (SPDR Gold Trust)
GDX (Market Vectors Gold Miners ETF)
40% Stock
VTI
VEU
Re: Variation of Permanent Portfolio
Posted: Sat Mar 03, 2012 5:11 pm
by AdamA
Odysseusa wrote:
Original Permanent Portfolio
SHY
TLT
GLD
VTI
Variation of Permanent Portfolio
40% Bond
SHY (Barclays 1-3 Year Treasury Bond)
PCY (PowerShares Emerging Markets Bond)
TLT (iShares Barclays 20 Year Treasury)
IEF (iShares Lehman 7-10 Year Treasury) or LQD
20% Gold
GLD (SPDR Gold Trust)
GDX (Market Vectors Gold Miners ETF)
40% Stock
VTI
VEU
Why?
Re: Variation of Permanent Portfolio
Posted: Mon Mar 05, 2012 11:58 am
by Odysseusa
Just for intellectual stimulation, which is priceless.
Re: Variation of Permanent Portfolio
Posted: Mon Mar 05, 2012 1:56 pm
by KevinW
Could you maybe explain the thesis behind this? Monkeys at typewriters could invent random allocations...I'm sure you arrived at this after some deliberate thought, but if you'd share what it was, it'd help move the discussion forward.
When I squint, this allocation looks an awful lot like a Boglehead retirement allocation e.g. the contents of Target Retirement Income. 40% stock, 20% inflation protection, 40% nominal bonds. Except Bogleheads use TIPS instead of gold and Total Bond Market instead of your slice-and-dice.
Re: Variation of Permanent Portfolio
Posted: Mon Mar 05, 2012 2:58 pm
by shoestring
Is the point of this that this is in fact the PP with the cash diminished and hiding inside the bond portion?-
Re: Variation of Permanent Portfolio
Posted: Mon Mar 05, 2012 3:00 pm
by Odysseusa
Thanks, all. I am novice and I don't know what I am doing yet. That's why I post this thread for discussion.
Re: Variation of Permanent Portfolio
Posted: Mon Mar 05, 2012 3:59 pm
by Gosso
Odysseusa wrote:
Thanks, all. I am novice and I don't know what I am doing yet. That's why I post this thread for discussion.
I highly recommend you read through the
EPIC Bogleheads thread on the Permanent Portfolio. I found it very informative when I first began learning about the PP. It allowed many people to voice their negative views or concerns towards the portfolio, which were then nicely defended by Craigr and MediumTex. It also had virtually every tweek debated. If it weren't for that thread I wouldn't have chosen the PP. It is a bit "lengthy" at 72 pages, but worth it -- after all were talking about were to put your life savings or at least "money you cannot afford to lose".
Craigr or MediumTex, have you thought about posting a "sticky thread" with a link to that Bogleheads conversation? Maybe call it "advanced discussions", since it might be too much information for some people.
Re: Variation of Permanent Portfolio
Posted: Mon Mar 05, 2012 4:26 pm
by MediumTex
Gosso wrote:
Odysseusa wrote:
Thanks, all. I am novice and I don't know what I am doing yet. That's why I post this thread for discussion.
I highly recommend you read through the
EPIC Bogleheads thread on the Permanent Portfolio. I found it very informative when I first began learning about the PP. It allowed many people to voice their negative views or concerns towards the portfolio, which were then nicely defended by Craigr and MediumTex. It also had virtually every tweek debated. If it weren't for that thread I wouldn't have chosen the PP. It is a bit "lengthy" at 72 pages, but worth it -- after all were talking about were to put your life savings or at least "money you cannot afford to lose".
Craigr or MediumTex, have you thought about posting a "sticky thread" with a link to that Bogleheads conversation? Maybe call it "advanced discussions", since it might be too much information for some people.
That's a good idea.
That BH thread was really something. It was a lot of fun participating in that discussion and I think it was really helpful to a lot of people (myself included).
Re: Variation of Permanent Portfolio
Posted: Mon Mar 05, 2012 5:12 pm
by Odysseusa
Once again, thank you.
Re: Variation of Permanent Portfolio
Posted: Tue Mar 06, 2012 8:06 am
by Lone Wolf
Gosso wrote:
I highly recommend you read through the
EPIC Bogleheads thread on the Permanent Portfolio. I found it very informative when I first began learning about the PP. It allowed many people to voice their negative views or concerns towards the portfolio, which were then nicely defended by Craigr and MediumTex.
That really was a great thread. It will likely take you several days to get through the entire thing but it's time well spent IMO.