Gyroscopic Investing

Adding EDV to PRPFX compensates for the lack of long-term treasuries in the PP fund. How do proponents of this recommendation feel about shorting the S&P (Proshares SH as a proxy) in lieu of adding the additional treasury exposure?

One reason that would preclude me from using this strategy, is the premise that the market tends to increase over time. Is this the only reason not to adopt this approach, or are there others that I have not considered?

All the best.

Budd

Don't short the S&P.

Any short ETF is going to see decay in its value over time, so that's not a long term buy and hold strategy.

What are the recommended rebalancing bands when adopting a 90% PRPFX 10% EDV portfolio? Both components are held in taxable accounts. Also, with respect to LTT, what is the rationale behind holding EDV over TLT? I prefer EDV for simplicity (portfolio is at VG) as well as the benefits of free transaction costs for VG ETF's. I do notice however, that EDV and TLT do not track closely on a daily basis.

Budd

buddtholomew wrote: What are the recommended rebalancing bands when adopting a 90% PRPFX 10% EDV portfolio? Both components are held in taxable accounts. Also, with respect to LTT, what is the rationale behind holding EDV over TLT? I prefer EDV for simplicity (portfolio is at VG) as well as the benefits of free transaction costs for VG ETF's. I do notice however, that EDV and TLT do not track closely on a daily basis.

Budd

I would rebalance annually.  December or January based on what gives the best tax treatment.

EDV gives you more bang for the buck than TLT (take a look at the chart).