Gyroscopic Investing

2X - VTI
1X - SHY
1X - SGOL
1X - TLT

Didn't Clive or Wonk or somebody do some back testing on this type of allocation?  I seem to remember it, but can't find it. 
(Or maybe it was just one of those "Permanent Portfolio" dreams??)

There is no problem doing this if you count 1X of the stock as part of your variable portfolio. Just realize the extra volatility involved. For those wanting to reach for the brass ring for extra returns, I typically recommend taking the risk on more stocks as a long term play. But again there are increased risks.

4 x 25% Split 1972-2010 CAGR: 9.66%
Modified 2X Stock and 1X other components (40% Stocks 20% Bonds/ST Bonds(cash)/Gold) 1972-2010 Split: 9.94%

So not a huge CAGR difference overall. I'd consider anything less than around 0.5-1.0% difference in CAGR to be market noise.

But you get slightly more volatility in the modified approach. In 2008 the modified portfolio was down -7.98% vs. -0.71% for the standard portfolio using Simba's spreadhsheet numbers for instance.

Thanks for that.  Much appreciated.
- Adam.

I'm eager to hear back from the OP. Why do they feel the need to own PRPFX and the HB PP?

Budd:

I think maybe you replied to the wrong thread? But since I own both, I'll answer anyway.  My reasoning was that the Fund would give me a little broader diversification, while still adhering to the underlying principle of the PP.