Peeking, and the Permanent Portfolio

General Discussion on the Permanent Portfolio Strategy

Moderator: Global Moderator

User avatar
ZedThou
Full Member
Full Member
Posts: 53
Joined: Thu Sep 22, 2011 9:59 pm

Re: Peeking, and the Permanent Portfolio

Post by ZedThou » Fri Nov 22, 2013 1:41 pm

6 Iron wrote: Honestly, a cold detached acceptance now.
Couldn't have described it better, and I keep tabs multiple times a day! We're all different, I suppose. There have been quite a few days this year where I was down five figures, but I have achieved emotional detachment.
Oh, such a beautiful tarmac. Look how smooth it is. See how smooth it is? And it's warm, and it's hard. - Charley Boorman Long Way Round
User avatar
6 Iron
Executive Member
Executive Member
Posts: 339
Joined: Sun Apr 25, 2010 11:12 pm

Re: Peeking, and the Permanent Portfolio

Post by 6 Iron » Fri Nov 22, 2013 2:03 pm

dragoncar wrote: It's impossible for me not to look.  It's just not gonna happen.  I make pretty regular purchases.
When I started, I did this, buying the lagging asset with monthly contributions and dividends. I now just put everything in cash/cash equivalents, and make asset purchases no more than a 1-2 times a year. I was using the frequent purchases as a justification for my frequent peeks; it was not improving my portfolio performance, just increasing gastric acid secretion.
User avatar
dualstow
Executive Member
Executive Member
Posts: 10749
Joined: Wed Oct 27, 2010 10:18 am
Contact:

Re: Peeking, and the Permanent Portfolio

Post by dualstow » Fri Nov 22, 2013 2:23 pm

It's a great idea to not look more than once a month, quarter or year, but as I asked in another thread, how will I know it's time to rebalance?
I get some emails triggered by major stock market movements, but I don't know how to set this up for the other assets.
Could someone please wake me when gold drops below 1200?
Last edited by dualstow on Fri Nov 22, 2013 2:25 pm, edited 1 time in total.
RIP Toots
in NE Syria, a Russian armored vehicle deliberately rammed an American military viehicle, leaving 7 US service members with concussions — the week
User avatar
6 Iron
Executive Member
Executive Member
Posts: 339
Joined: Sun Apr 25, 2010 11:12 pm

Re: Peeking, and the Permanent Portfolio

Post by 6 Iron » Fri Nov 22, 2013 2:51 pm

The timing of rebalancing is imprecise at best, and the trends that caused the need for rebalancing can always continue, making it impossible to know when is the best time to rebalance. So we use rebalancing bands, but these are guidelines for our own risk tolerance, not crystal balls. In my portfolio, asset valuation changes have been gradual enough that I have never checked and been shocked at how out of balance an asset was. My sense is that if something drastic happened (gold plummets to $500/oz, or the market loses 50% in one day, or LT bond yields go up to 8%), I would hear about it on the news and be able to react accordingly.

I check my balance sheet infrequently, but I still read the newspaper. It is not like I have been unaware of the current bull market in equities.
User avatar
annieB
Executive Member
Executive Member
Posts: 263
Joined: Thu Apr 12, 2012 5:23 pm
Location: Brentwood,Tennessee

Re: Peeking, and the Permanent Portfolio

Post by annieB » Fri Nov 22, 2013 4:13 pm

Can't believe how far gold can fall and not hit my 15% rebalance.
Now at 19.08%,VTI at 32.35%.

At my age,I check my numbers every Friday afternoon.. :)
dragoncar
Executive Member
Executive Member
Posts: 1111
Joined: Wed Aug 10, 2011 7:23 pm

Re: Peeking, and the Permanent Portfolio

Post by dragoncar » Fri Nov 22, 2013 5:28 pm

dualstow wrote: It's a great idea to not look more than once a month, quarter or year, but as I asked in another thread, how will I know it's time to rebalance?
I get some emails triggered by major stock market movements, but I don't know how to set this up for the other assets.
Could someone please wake me when gold drops below 1200?
You can make a tracking spreadsheet like this one and hide the cells with scary info:

https://docs.google.com/spreadsheet/pub ... utput=html

edit: use google docs and the function =googlefinance("symbol","price") to grab real time prices
Last edited by dragoncar on Fri Nov 22, 2013 5:30 pm, edited 1 time in total.
User avatar
Tyler
Executive Member
Executive Member
Posts: 1926
Joined: Sat Nov 12, 2011 3:23 pm
Contact:

Re: Peeking, and the Permanent Portfolio

Post by Tyler » Sat Nov 23, 2013 1:25 pm

I enjoy applying my nervous intellectual energy that Cowboyhat describes to spending less rather than investing. It's another side of financial optimization that I have far more control over. 
Mechanical engineer, history buff, treasure manager... totally not Ben Gates
Post Reply