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The power of gold and rebalancing in a portfolio
The Perth Mint (blog) ^ | 04-29-2015 | Bron Suchecki

Posted on 04/29/2015 1:24:13 PM PDT by NRx

The Permanent Portfolio is an investment strategy developed by Harry Browne in the 1970s that advocates splitting your money equally across four assets – cash, gold, equities and bonds – and rebalancing back to that split whenever they diverge too much. Mainstream financial planners would probably balk at a 5% allocation to gold, let alone 25%, but how does such a strategy perform in reality and could you get your financial planner to consider it?

(Excerpt) Read more at research.perthmint.com.au ...


TOPICS: Business/Economy
KEYWORDS: gold; investing
Related page; The Permanent Portfolio.

http://earlyretirementextreme.com/wiki/index.php?title=Permanent_Portfolio

1 posted on 04/29/2015 1:24:13 PM PDT by NRx
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To: NRx

http://earlyretirementextreme.com/wiki/index.php?title=Permanent_Portfolio


2 posted on 04/29/2015 1:24:41 PM PDT by NRx (An unrepentant champion of the old order and determined foe of damnable Whiggery in all its forms.)
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To: NRx

You might not be too excited if you bought $14 Silver or $1600 Gold.


3 posted on 04/29/2015 1:30:54 PM PDT by G Larry (Obama Hates America, Israel, Capitalism, Freedom, and Christianity.)
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To: G Larry

You’re supposed to rebalance it. If you are rebalancing, you did neither.


4 posted on 04/29/2015 1:46:30 PM PDT by dinodino
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To: NRx; All
could you get your financial planner to consider it?

WTF? If my financial planner doesn't do what I tell him, I get another financial planner that will, tout suite! He is there to advise me, not tell me what I will be doing with my money. I tell him, he doesn't tell me.
5 posted on 04/29/2015 1:48:30 PM PDT by notdownwidems (Washington DC has become the enemy of free people everywhere)
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To: dinodino

Oh...I didn’t know that “rebalance” meant “never buy at current prices”.....


6 posted on 04/29/2015 2:29:47 PM PDT by G Larry (Obama Hates America, Israel, Capitalism, Freedom, and Christianity.)
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To: G Larry

You implied that one would purchase all of one’s metals at a peak. If you are rebalancing, that is untrue.


7 posted on 04/29/2015 2:37:05 PM PDT by dinodino
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To: dinodino

Wrong!

My point was that if you bought ANY between those prices and now, you’re not too inclined to buy more now.


8 posted on 04/29/2015 2:41:24 PM PDT by G Larry (Obama Hates America, Israel, Capitalism, Freedom, and Christianity.)
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To: G Larry

Wrong!

If you are rebalancing, you don’t care about the price. You are missing the concept entirely.


9 posted on 04/29/2015 2:43:03 PM PDT by dinodino
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To: dinodino

“you don’t care about the price”

HAHAHAHAHAHAHA!

If you’re the one selling to the suckers holding the bag, you don’t care.


10 posted on 04/29/2015 2:46:33 PM PDT by G Larry (Obama Hates America, Israel, Capitalism, Freedom, and Christianity.)
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To: G Larry

I’m guessing you’ve never read any Bogle, or anything about investing that was longer than what could be printed on a matchbook.


11 posted on 04/29/2015 3:02:36 PM PDT by dinodino
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To: dinodino

I was trading options and commodities in the 70’s.


12 posted on 04/29/2015 6:26:30 PM PDT by G Larry (Obama Hates America, Israel, Capitalism, Freedom, and Christianity.)
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To: G Larry

: ) Great tag line G Larry!


13 posted on 04/29/2015 6:33:01 PM PDT by antceecee (Bless us Lord, forgive us our sins and bring us to everlasting life.)
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To: G Larry

You are an active trader, so it’s no wonder you don’t understand/agree with EMH.


14 posted on 04/29/2015 7:33:46 PM PDT by dinodino
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