Search found 72 matches
- Wed Jun 06, 2012 3:00 pm
- Forum: Permanent Portfolio Discussion
- Topic: The 50-50 Solution
- Replies: 28
- Views: 17256
Re: The 50-50 Solution
I also think the "bond" portion of way too many portfolios tends to be 1) too short in duration (even when they ARE long duration, they're callable so it's pointless), and 2) too risky (mortgages, munis, corporates, foreign, etc). I think the fact that the 50% bond portion is longer in duration and...
- Wed Jun 06, 2012 1:10 pm
- Forum: Permanent Portfolio Discussion
- Topic: time of year to rebalance
- Replies: 18
- Views: 9067
Re: time of year to rebalance
Thanks, Tortoise. I remember HB saying to put new contributions in cash. But I didn't read this passage carefully enough: "Whenever you have additional funds to invest, you don’t need to divide the additions evenly among the four investments. Just put the new money into the cash portion. If you do ...
- Wed Jun 06, 2012 1:05 pm
- Forum: Permanent Portfolio Discussion
- Topic: time of year to rebalance
- Replies: 18
- Views: 9067
Re: time of year to rebalance
Thanks, Tortoise. I remember HB saying to put new contributions in cash. But I didn't read this passage carefully enough: "Whenever you have additional funds to invest, you don’t need to divide the additions evenly among the four investments. Just put the new money into the cash portion. If you do t...
- Wed Jun 06, 2012 12:48 pm
- Forum: Bonds
- Topic: To the Canadian PP folks: how does ZFL compare to holding individual bonds
- Replies: 4
- Views: 3211
To the Canadian PP folks: how does ZFL compare to holding individual bonds
The question is in the subject line. I will be performing a rebalance soon, and have to buy some bonds, but unfortunately I need less than the 5K minimum. So I will be putting cash into ZFL instead (unless there is a better option). I would like to know how closely ZFL comes to tracking 45-year bond...
- Fri Jun 01, 2012 2:29 pm
- Forum: Permanent Portfolio Discussion
- Topic: Permanent Portfolio for Canadians
- Replies: 12
- Views: 6531
Re: Permanent Portfolio for Canadians
The other thing about doing a plain vanilla Canadian PP is that you have lower transaction fees, because you hold fewer ETFs. Another thing to consider if you're just starting out: For bonds, I'm pretty sure you have to buy a minimum of 5K-worth. If you want to hold smaller amounts, you can use the...
- Fri Jun 01, 2012 9:50 am
- Forum: Permanent Portfolio Discussion
- Topic: do we agree that we're in a period of deflation?
- Replies: 27
- Views: 10838
Re: do we agree that we're in a period of deflation?
For the deflationists: what do you make of the fact that prices aren't actually falling but rising ? For the inflationists: what to make of record low yields on LT bonds ? The whole narrative strikes me as a messy "work in progress". I'd suggest staying diversified. 8) [/quote] Right, Lone Wolf...
- Fri Jun 01, 2012 9:45 am
- Forum: Permanent Portfolio Discussion
- Topic: time of year to rebalance
- Replies: 18
- Views: 9067
Re: time of year to rebalance
Because I don't have very much money, by bi-weekly contributions into cash cause my cash pot to become overweighted. If I were to rebalance out of cash to maintain my bands, I'd have to do it twice a year, maybe more. That would cost me a lot of money in transaction fees. So I was thinking that a on...
- Thu May 31, 2012 9:36 pm
- Forum: Permanent Portfolio Discussion
- Topic: do we agree that we're in a period of deflation?
- Replies: 27
- Views: 10838
do we agree that we're in a period of deflation?
The PP is supposed to take advantage of (and protect you from) all economic conditions. What economic season are we in now? Deflation? Are we still in a transitional period? I know, this question comes up a lot, but I *still* don't have an answer, and it's been almost a year since I've been looking ...
- Thu May 31, 2012 9:24 pm
- Forum: Permanent Portfolio Discussion
- Topic: time of year to rebalance
- Replies: 18
- Views: 9067
time of year to rebalance
Hello there,
Canadian PP still hanging in at 2% gains since October 2010 when I started. But that's not why I posted :-)
I'm wondering if it's OK to do a rebalance this October.
Somebody here said that rebalancing in the fall is not a good idea. Should I wait till a better time?
THanks!
Canadian PP still hanging in at 2% gains since October 2010 when I started. But that's not why I posted :-)
I'm wondering if it's OK to do a rebalance this October.
Somebody here said that rebalancing in the fall is not a good idea. Should I wait till a better time?
THanks!
- Thu May 31, 2012 9:22 pm
- Forum: Permanent Portfolio Discussion
- Topic: Where should new contributions go?
- Replies: 54
- Views: 32912
Re: Where should new contributions go?
I have been accumulating into cash and plan to do a once-a-year re-balance out of cash into my other positions. I do this for two reasons: 1. My employer forces me to use Manulife funds, and Manulife only lets me take money out of their funds once a year. If manulife offered all the necessary funds ...
- Wed Apr 04, 2012 9:11 am
- Forum: Permanent Portfolio Discussion
- Topic: printing money does not equal inflation
- Replies: 22
- Views: 8049
Re: printing money does not equal inflation
Right, ok. By "printing money" I just mean "increasing the money supply". Japan is one example of where the government has increased money supply and inflation hasn't happened. I suppose this is occurring because the *demand* for money is going up in tandem, thus zeroing out inflation? (I guess the ...
- Mon Apr 02, 2012 12:56 pm
- Forum: Permanent Portfolio Discussion
- Topic: I just want reassurance that the canadian PP is ok
- Replies: 6
- Views: 3660
Re: I just want reassurance that the canadian PP is ok
thank-you.
Yes, I will stay the course with the PP as it seems to make logical sense.
I think the key for me is to not look at my portfolio, which I haven't done in about 2 weeks now (go me!).
I can't find the original article, but I think it was in the Financial Post.
Yes, I will stay the course with the PP as it seems to make logical sense.
I think the key for me is to not look at my portfolio, which I haven't done in about 2 weeks now (go me!).
I can't find the original article, but I think it was in the Financial Post.
- Mon Apr 02, 2012 12:48 pm
- Forum: Permanent Portfolio Discussion
- Topic: printing money does not equal inflation
- Replies: 22
- Views: 8049
printing money does not equal inflation
Hi, I **think** I read on this board that printing money does not necessarily lead to inflation. If I recall correctly, money printing precipitated by a credit crisis does not lead to inflation, according to the historical record. Now I'm not 100% sure I got this right. Could somebody set me straig...
- Mon Mar 19, 2012 11:53 am
- Forum: Permanent Portfolio Discussion
- Topic: Document your international Permanent Portfolio
- Replies: 39
- Views: 23229
Re: Document your international Permanent Portfolio
Canadian PP with not that much money. I have to put my new contributions into Manulife funds to get an employer match. I have to do some funky stuff to get my allocations right. 1. Gold: IGT etf (I will switch to have some physical gold when I have more money.) 2. Bonds: Canadian longest term bonds ...
- Mon Mar 19, 2012 11:34 am
- Forum: Permanent Portfolio Discussion
- Topic: I just want reassurance that the canadian PP is ok
- Replies: 6
- Views: 3660
I just want reassurance that the canadian PP is ok
Hi, While my US counterparts have seen the SP go up up up, the TSX is up only 5% since I bought in to the PP in October. In the news, it says that the TSX has not been doing as well as the S&P because gold and oil are down (and they feature heavily in the TSX, presumably). This suggests a correlatio...
- Mon Jan 09, 2012 3:44 pm
- Forum: Permanent Portfolio Discussion
- Topic: pp or solid bond fund for education savings plan for kids
- Replies: 9
- Views: 3893
pp or solid bond fund for education savings plan for kids
I am just starting an education savings plan for my kids, age 4 and 6, so my time horizon is a little over 10 years. I have under $1k saved. I was wondering whether you would suggest PP at this stage, given the lack of money and the medium time horizon. I worry about transaction fees, which are $20 ...
- Thu Nov 03, 2011 12:58 pm
- Forum: Permanent Portfolio Discussion
- Topic: What We Have Learned About Rebalancing
- Replies: 46
- Views: 20412
Re: What We Have Learned About Rebalancing
Thanks!MediumTex wrote:Low levels of liquidity and high bid/ask spreads in zero coupon funds and bad tax treatment outside of tax deferred accounts are a few objections.christina wrote: What is the argument *against* using zero coupon bonds?
- Thu Nov 03, 2011 12:40 pm
- Forum: Permanent Portfolio Discussion
- Topic: What We Have Learned About Rebalancing
- Replies: 46
- Views: 20412
Re: What We Have Learned About Rebalancing
What is the argument *against* using zero coupon bonds?
- Tue Nov 01, 2011 10:35 am
- Forum: Gold
- Topic: new offering by the Canadian Mint - direct ownership of gold at .35% MER
- Replies: 5
- Views: 3711
new offering by the Canadian Mint - direct ownership of gold at .35% MER
Hey, The Canadian Mint will be offering direct ownership of gold, to be held in its vault in Ottawa. To buy the gold, you need to buy exchange traded receipts (ETRs) on the Toronto stock exchange. http://www.mint.ca/store/news/royal-canadian-mint-announces-offering-of-new-gold-investment-product-131...
- Mon Oct 31, 2011 11:14 am
- Forum: Other Discussions
- Topic: Japan's deflation is on purpose?
- Replies: 5
- Views: 2851
Japan's deflation is on purpose?
Maybe some of you have opinions on this piece, which I found by googling "Japan deflation myth" :-) http://www.lewrockwell.com/north/north799.html here is a quote: Here is the ideal scenario: no monetary inflation and output increasing by 2% to 3% per annum. Consumer prices fall by 2% to 3% per annu...
- Sat Oct 29, 2011 2:18 pm
- Forum: Permanent Portfolio Discussion
- Topic: How can PP Possibly Work Outside of the US?
- Replies: 10
- Views: 4143
Re: How can PP Possibly Work Outside of the US?
I'm not sure whether this helps or not but, 1. canadian bonds will go up in the event of a canadian deflation. 2. canadian equities will go up in the event of a canadian prosperity. 3. I don't actually understand how gold is supposed to work for me as a canadian (since it protects against US devalua...
- Fri Oct 28, 2011 3:00 pm
- Forum: Bonds
- Topic: How to decide which bond to buy
- Replies: 10
- Views: 4160
Re: How to decide which bond to buy
OK, yes, the duration is all that matters.
There is a lot of clutter around yield/coupons, etc...I'm kind of glad I can ignore it.
There is a lot of clutter around yield/coupons, etc...I'm kind of glad I can ignore it.
- Fri Oct 28, 2011 1:21 pm
- Forum: Bonds
- Topic: How to decide which bond to buy
- Replies: 10
- Views: 4160
Re: How to decide which bond to buy
OK. I shouldn't pay attention to coupon/yield because it has already been priced into the bond -- is that correct? So even though the 35-year bond (#1) has a slightly lower yield and lower coupon than the 25 -year bond (#3), the price of the bond will reflect these discrepancies.
- Fri Oct 28, 2011 12:13 pm
- Forum: Bonds
- Topic: How to decide which bond to buy
- Replies: 10
- Views: 4160
How to decide which bond to buy
I see a bunch of long term federal canadian bonds in front of me. The stats are: Bond#1: coupon: 3.5/Maturity:2045/offer price:108.973/Offer yield:3.073 Bond #2: coupon: 4.0/Maturity:2041/offer price:118.251/Offer yield:3.058 Bond #3: coupon: 5.0/Maturity:2037/offer price:133.819/Offer yield: 3.080 ...
- Thu Oct 27, 2011 9:48 pm
- Forum: Bonds
- Topic: Danger of Bond ETF's vs Direct Purchase
- Replies: 68
- Views: 26323
Re: Danger of Bond ETF's vs Direct Purchase
Thanks, CA PP! I can see the bond you mention in the list from scotia itrade. Yes, this is a much better option than ZFL.