Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Broken is the wrong word. It is what it is. But the point the article makes is that PRPFX and other vehicles following this formula will not be able to repeat the fine results of the last 10 years. 25% of the portfolio is stuck in the mud - treasury bonds - possibly for many years to come. I sold out of PRPFX over a year ago and it's a move I'm very happy I made.
The biggest obstacle for the future of the permanent portfolio in its purest form would be an end to the 31-year bull market in bonds as proclaimed by Barron's over the weekend. People have been able to borrow money essentially for free, but that can't last forever. If Barron's is right and the bull market ended last May, then the permanent portfolio would appear to have 25% allocated to something that can't go up.
Reply to @MikeM: If you want Jay Culter, you can have him. If Rodgers plays for Green Bay, the Packers win. I'm actually an old Chicago Cardinals fan. Merry Christmas, Ted
Many articles and opinions during 2008-09 that Buy and Hold as a strategy was dead. I am still invested in the fund although during strong upward trends I wish not as much. But that's not why i'm devoting a part of my portfolio to it.
Comments
Merry Christmas,
Ted
Merry Christmas,
Ted
Now you get to enjoy the Buffalo Sabers.
Worst win/loss record in the NHL?
Mona
Merry Christmas Ted.
Permanently? No way to know that until you see it through at least a full market cycle.
This year is going to distort a lot of perspectives.