Gyroscopic Investing

Greg wrote: Very cool stuff. Although on mobile the image for the p.o. in lazy portfolios shows 60% for stocks instead of 25%

Tyler wrote:

Greg wrote: Very cool stuff. Although on mobile the image for the p.o. in lazy portfolios shows 60% for stocks instead of 25%

Good catch!  At least that was an easy fix. 

Mountaineer wrote: Would it be possible for us old retired guys to show something like the Vanguard Retirement Income fund, maybe even on the lazy portfolio page?  I look at it compared to the PP from time to time.

Great site, but the way.  Thanks.

... M

Tyler wrote: FYI -- I've received several requests for expanding the Pixel calculator to the full version rather than cropping it at ten years.  The new version is now up.  Enjoy!

Tyler wrote: I personally use the Permanent Portfolio.  The more I study it, the more I like it for my needs.  I am enjoying ER right now -- it gave me the time to put this together. 

frugal wrote: Do you have any studies about EU-PP?

lazyboy wrote: Thanks, Tyler. Is there a way to show VWINX: Vanguard Wellesley Income? It has done very well as conservative portfolio over its lifetime since 1970. I remember a post by Medium Tex a few years back about its stability and comparing it favorably as an option for those uncomfortable with the PP. I see a problem, though, if you are excluding managed funds from your presentation of all weather portfolios.

PP67 wrote: Tyler, awesome charts!...  There isn't a day that goes by where I am not glancing at a printout of one of your funnel charts!...  I find the funnel chart very soothing when the wheels seem to be flying off the wagon...

One suggestions: Would it be difficult to post the last year few years of performance on the funnel chart (ie last 12 months under Year Invested 1, last 24 months under Year Invested 2 and so on sort of like you do on your Hurricane charts.  The would give an indication of how the portfolio has been performing recently relative to the full 42 year history.  I've been posting these values by hand (taken from PeaktoTrough) but it seems like you have those values adjusted for inflation.  For instance, per PeaktoTrough, the last 12 months CAGR is -1.32, the 2 yr CAGR is +3.62, the 3 yr CAGR is +1.18, 4 yr CAGR is +2.17 and 5 yr CAGR is +4.44 which if you post it on the funnel chart (a dot for each year) all fall within the range of the full life PP (albeit on the lower range at this time).  To me, it is an indication that the portfolio is still operating within the range one could expect.

Again, great charts!

Tyler wrote: The very first versions of the calculators had Wellington and Wellesley as options, but I removed them to focus squarely on asset allocation where the holdings are more transparent.  I've considered adding some special calculators for certain well-established funds like that. 

In any case, here's VWINX with and without a side of gold.  IMHO, it's a nice fund.

[img width=300]http://i64.tinypic.com/2q0ow2d.jpg[/img]

[img width=300]http://i67.tinypic.com/2jf5mg.jpg[/img]

Pointedstick wrote: …As long as you notice how that magic turned a whole bunch of dark green squares into light green ones. These are the times that will try people like Budd because they reflect gold dragging down the portfolio, not holding it up. That seems to be the bargain you make when you add gold to turn the red squares into white or green ones in order to reduce sequence-of-returns risk.

MachineGhost wrote: And it is historically unprecendented for the PP to have a losing year, a winning year and a losing year in a row.  That is out of sample behavior so that is a warning that old operating assumptions may fall apart.