This Forum & Dissenting Opinions of the HBPP

[mathjak107]

so here it is more than a decade later and what i saw as the achilles heel of the pp back then , long term treasuries , is still down about 1% cagr a decade later and cash was at zero for years

rebalancing made things worse as good money fell lower and lower as it got added to bonds only to fall even more .

so you guys fought the point with me but harry never saw zero interest rates or 1-2% on long term treasury bonds where they had no where to go going forward except down .

today it’s a different story with rates close to historical norms. but back then putting 50% of the money in a black hole just made no financial sense to me.

that to me made the pp back then highly speculative on rates when rates were already in a range where going up was far greater than going down.