Or just a stock photo? Beautiful cat! Perfect illustration of the passive strategy.
https://portfoliocharts.com/2016/11/11/ ... at-choice/
Tyler, is that your cat?
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dualstow
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Tyler, is that your cat?
Whistling tunes / We hide in the dunes by the seaside
Whistling tunes / We're kissing baboons in the jungle
Whistling tunes / We're kissing baboons in the jungle
Re: Tyler, is that your cat?
Just a stock photo, but I understand that cats power the internet. 
I know the passive theme simply echoes common knowledge in these parts, but hopefully the message can help others understand the benefits of the approach.
I know the passive theme simply echoes common knowledge in these parts, but hopefully the message can help others understand the benefits of the approach.
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MachineGhost
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Re: Tyler, is that your cat?
Passive is for suckers!
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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dualstow
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Re: Tyler, is that your cat?
I wouldn't want MG (or CNBC) to answer any other way.MachineGhost wrote:Passive is for suckers!
But passive is for the wise.Whistling tunes / We hide in the dunes by the seaside
Whistling tunes / We're kissing baboons in the jungle
Whistling tunes / We're kissing baboons in the jungle
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MachineGhost
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Re: Tyler, is that your cat?
How wise do you feel after the nearly 100 basis point move in T-Bonds lately?dualstow wrote:I wouldn't want MG (or CNBC) to answer any other way.MachineGhost wrote:Passive is for suckers!
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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dualstow
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Re: Tyler, is that your cat?
Wise enough to know how unimportant ephemeral movements are.MachineGhost wrote:How wise do you feel after the nearly 100 basis point move in T-Bonds lately?dualstow wrote:I wouldn't want MG (or CNBC) to answer any other way.MachineGhost wrote:Passive is for suckers!
And look, bonds could completely crash, but the pp knows that.
Whistling tunes / We hide in the dunes by the seaside
Whistling tunes / We're kissing baboons in the jungle
Whistling tunes / We're kissing baboons in the jungle
Re: Tyler, is that your cat?
Go dualstow!!
And thanks for posting that. I'm due to rebalance into gold and bonds and once again it's nose-holding time.
And thanks for posting that. I'm due to rebalance into gold and bonds and once again it's nose-holding time.
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dualstow
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Re: Tyler, is that your cat?
I bought some bonds in the auction the other day, the ones with the CUSIP ending in ~RU4. 2.875% yield I can think of worse things than holding on to that for a while.WiseOne wrote:I'm due to rebalance into gold and bonds and once again it's nose-holding time.
I *wish* I had to rebalance into gold after this recent drop, but I can't justify buying more at 27% of my pp.
Whistling tunes / We hide in the dunes by the seaside
Whistling tunes / We're kissing baboons in the jungle
Whistling tunes / We're kissing baboons in the jungle
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MachineGhost
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Re: Tyler, is that your cat?
You guys seem to rebalance awfully frequently and not every 2-3 years as rebalancing bands dictate. You are letting your losers run and capping your winners.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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dualstow
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Re: Tyler, is that your cat?
Maybe not frequently, but I did rebalance after a year and several months as Harry suggests an annual rebalance is ok. I'm low on bonds and need some.MachineGhost wrote:You guys seem to rebalance awfully frequently and not every 2-3 years as rebalancing bands dictate. You are letting your losers run and capping your winners.
Whistling tunes / We hide in the dunes by the seaside
Whistling tunes / We're kissing baboons in the jungle
Whistling tunes / We're kissing baboons in the jungle
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MachineGhost
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Re: Tyler, is that your cat?
Who cares what Harry said 15+ years or so ago? He's dead, Jim! Use the P2T backtest tool and you'll see that annual rebalancing is inferior to the bands. The more frequent you rebalance, the lower your gains and higher your risk.dualstow wrote:Maybe not frequently, but I did rebalance after a year and several months as Harry suggests an annual rebalance is ok. I'm low on bonds and need some.MachineGhost wrote:You guys seem to rebalance awfully frequently and not every 2-3 years as rebalancing bands dictate. You are letting your losers run and capping your winners.
I believe Browne also wrote to check the bands once a year for a rebalance, not actually rebalance annually. The gaps help preserve momentum.
And my own optimizations showed that the proscribed 15%/35% rebalancing bands (checked yearly) were very close to being optimal.
I'm not nitpicking -- you're leaving money on the table if you rebalance too frequently. And yearly is too frequently.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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dualstow
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Re: Tyler, is that your cat?
Fair enough. I'll take another look.
Whistling tunes / We hide in the dunes by the seaside
Whistling tunes / We're kissing baboons in the jungle
Whistling tunes / We're kissing baboons in the jungle
Re: Tyler, is that your cat?
This is my first rebalance since starting in 2013. It was prompted by cash hitting an upper band, which happened because I've been getting lazy and putting odd PP contributions into cash.MachineGhost wrote:You guys seem to rebalance awfully frequently and not every 2-3 years as rebalancing bands dictate. You are letting your losers run and capping your winners.