Background - http://crawlingroad.com/blog/2008/12/22/permanent-portfolio-historical-returns/
Thoughts? Anybody here investing using this model?
Thoughts? Anybody here investing using this model?
Permanent Portfolio - Thoughts?
- Thread starter EricVorheese
- Start date
It is an indicator. Either way, put aside the past performance numbers - does the premise behind this model make sense?
1. It's not an indicator at all. Current markets are.
2. No, it does not, because it's based on nothing.
c4yrslf12 - i think the root of this question is really "does anyone think this method is good" which in reality is "i want to find a good method".
If your not able to contribute to the what he is really asking, then your just taking the opposite view without any backup to your claims as well.
How about providing the OP with a working method, even if based on current markets?
If your not able to contribute to the what he is really asking, then your just taking the opposite view without any backup to your claims as well.
How about providing the OP with a working method, even if based on current markets?
A working method is a constantly changing one. Because markets are ever changing, why would anyone subject themselves to a permanent plan? This thought process creates a fallacy from the get go.
"does anyone think this method is good" -- I would say no. While it has a basic fundamental use of diversification, it's irrelevant without change.
"i want to find a good method" -- every single persons "method" will be completely different because every single person has different investing risks, time horizons, goals and objectives, and amounts of money.
Learn about asset allocation, future tax diversification, and hedging.
Just buy some gold each month. That's my permanent portfolio and it lets me sleep at night. If you buy gold, take delivery.
Gold has been down every month since its highpoint in September. It is waiting for the next QE announcement.
The timing is right.
It is good to note that it ran up to it's high back in September all because of a QE announcement. That rally didn't last long.
Gold has been down every month since its highpoint in September. It is waiting for the next QE announcement.
I'm thinking long term. Come back in 5 years. The stock market is down quite a lot when you price it in gold:
http://pricedingold.com/dow-jones-industrials/
Where do you buy your gold? And I'm assuming you store it in a safe deposit box that's insured? Or do you keep it in a vault in a swiss bank high in the alps?
Where do you buy your gold? And I'm assuming you store it in a safe deposit box that's insured? Or do you keep it in a vault in a swiss bank high in the alps?
I buy mine from Apmex. I don't store it in safe deposit box. I think that's risky, especially if the gov't declares bank holidays. Also, in places like California, the state can seize your box if you don't make contact with the bank for a few years, EVEN if you're paying the fees. Imagine having to file paperwork to get your property back if they haven't already sold it off.
I recommend storing some gold in the country and the rest outside of the country. You don't need much space to store/hide your gold. Get creative.
I have read about the Permanent Portfolio before. Seems like a solid alternative for your average joe to invest in instead of mutual funds or whatever people who don't want to deal with investing do.
Certainly the major strength of this method is simply safety and keeping your capital from major loss. However, the other edge of the sword is that you're not going to realize amazing gains.
So it really depends on what your goal is. If you're looking to go full mGrunin and shoot for high returns then this method is not for you.
If you're looking for a safe place to put a nestegg for the long term and not have to worry about stock market fluctuations or learning about investing, then I'd recommend it for sure.
Certainly the major strength of this method is simply safety and keeping your capital from major loss. However, the other edge of the sword is that you're not going to realize amazing gains.
So it really depends on what your goal is. If you're looking to go full mGrunin and shoot for high returns then this method is not for you.
If you're looking for a safe place to put a nestegg for the long term and not have to worry about stock market fluctuations or learning about investing, then I'd recommend it for sure.
I have some doubts about them. However, I think Sprott Physical Bullion Trust is probably the best one since it's all physical gold (symbol: PHYS).
Trust Highlights - Sprott Physical Gold Trust - Sprott Physical Bullion Trusts
They have allocated storage in Canada and are open to inspections. Also, if you're an American there are tax advantages when you sell your shares. I have some of their physical gold and silver in a Health Savings Account where I can't own physical gold directly.