Gyroscopic Investing

From Seeking Alpha:

http://seekingalpha.com/article/258285- ... _watchlist

Thanks for the link. I posted a couple comments. Main one being you don't want to use LQD for the bond portion. That is a mixed corporate bond fund and not long enough duration and not low enough credit risk compared to Treasuries.

At least he gave HB credit for it.  

I'm not surprised to see so-called gurus are touting the PP right now b/c gold and LT bonds are doing so well.  I suspect that most of these people will abandon ship the next time there is a strong stock market rally and LTT's and gold are down.

I'm glad the writer gave credit to HB.  For some reason the writer recommends a corporate bond fund (LQD) instead of a US LT Treasury Bond Fund like TLT, but this could be a typo.

No discussion of macroeconomics... just charts.  They discuss 2008, but they don't go into the strategy of holding LT treasuries (which so many portfolios avoid).

I give them credit for mentioning HB, but this article wreaks of some real short-term thinking punditry.

He may have gotten the symbol wrong for TLT since he notes that HB used LTTs.  Stay tuned for a fifth asset. 

Yeah, using LQD in the PP is sort of like using salad oil instead of motor oil in your car.

I think that the successful (and relaxed) deployment of the PP strategy really requires that the user understand the strategy in depth.  Once you understand how the assets really work together, it should become obvious why most corporate bonds are wholly unsuitable for the LT bond portion.