Hi-
Long time lurker at this site and its predecessor. I have been investing in the markets since 1986. I have to say that the last five years have been both the most fascinating and frustrating I have ever experienced. this is my first post.
In my Core account I hold FPACX, FESGX, IVWCX , ICMAX and ABRCX. I am contemplating the addition of PAUDX. I like the low volatility and equity like returns. I've read the commentary here and most seem to agree with its use as a Core type holding and with its performance and risk characteristics. Before I pull the trigger, any other thoughts that people want to share?
MarkM
Comments
Arnott: The Long View-Building The 3-D Shelter
By Rob Arnott | October 26, 2011
http://www.indexuniverse.com/sections/features/10121-arnott-the-long-view-building-the-3-d-shelter.html
Excerpt:
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"For an asset allocator, the sweet spot is a combination of cheap assets and an improving economic backdrop. Today, we have cheaper assets and a deteriorating macro picture. Thus, the prudent course is to add incrementally to these exposures.
If you are buying some assets, you have to be selling others. The obvious sell candidate in a long-term inflationary environment would be developed world sovereign debt.
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So while Treasuries and other ultra-low yielding safe haven assets will likely provide liquidity and possible short-term protection on a nominal basis, their long-term real return outlook is bleak. Thus, investors must ask themselves: What is risk? Short-term volatility or long-term impairment of purchasing power? Unless one plans to spend the bulk of one’s assets in the next year or two, we strongly assert the latter is a far greater risk.
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Investment portfolios of today are in a similar predicament. Sadly, a 3-D hurricane season will not be a matter of waiting a handful of months but will require many years of guarded vigilance. Preparedness can and should start now while a softening economy postpones the 3-D hurricane season a year or two. Fortunately, many of the asset classes that will form the bulwark of our shelter are becoming reasonably priced. There may never be a better time to establish our third pillar, using continued weakness to embed and reinforce our ability to weather the storm. The beach days are over. It’s time to get to work—carefully and deliberately—building protection from the greatest threat to our portfolios."
That's a nice add. Thanks.
MarkM