Gyroscopic Investing

My investment was down almost 2% today and closed at its low for the day. OMG! I've lost all confidence in this asset. What was Harry Browne thinking? You can't eat this asset and it barely hurts if it falls on your foot. What good is it? Overly volatile. I don't know how much more of this I can take. There has to be a better way that can exclude it from my overall investment portfolio. Please talk me off of the ledge!

Just be glad it isn't tanking in tandem with another asset like GLD and TLT

Reub wrote: My investment was down almost 2% today and closed at its low for the day. OMG! I've lost all confidence in this asset. What was Harry Browne thinking? You can't eat this asset and it barely hurts if it falls on your foot. What good is it? Overly volatile. I don't know how much more of this I can take. There has to be a better way that can exclude it from my overall investment portfolio. Please talk me off of the ledge!

Yep, it is panic time for the PP. Maybe we are long overdue to switch to the 100% Short Term Bond Portfolio. What could possibly go wrong? This diversification thing is for losers!

I don't intend to be snarky, but here is my take.

I reserve the right to complain about an asset that has lost 17% of its value over my holding period. A 2% decline in an asset that has risen 65% over the same holding period I can ignore.

To paraphrase rickB, everything in the PP sucks eventually. You have every right to be upset about the lagging asset, but I think the key to being really comfortable with the PP is to just not pay too much attention to whatever is going down at any moment in time. I'm terrible at this as well but I'm working on it. You buying gold when it was high is just a function of when you started your PP. Stocks have done great in that time but that won't always be the case.

I'll let you all know when I have achieved the KevinW level of PP equanimity myself (At that point I expect to be able to levitate and to use the force to fetch the TV remote.)

Hah, no do you don't get those powers, but you do get the power to focus on your work, family, and hobbies instead of freaking out about finances.

Another down day. I can't take too much more! (Unless I'm investing in the  Permanent Portfolio).

This is nothing, I was in gold at the 2011 peak. PP sure is looking pretty though with 25% in long-term treasuries.

Predict the following from now through 12-31-2014: Stocks rise, gold is flat and long-term treasuries fall.
What will really happen  : stocks and treasuries rise, gold falls.