If I understand what you are saying, you contend that once a PP has been established then one should not be concerned about the otherMediumTex wrote:
The overall PP did fine in 2008. That's the point--it didn't require you to correctly guess when it was time to exit the stock market and then decide when to re-enter. Trying to guess those things correctly is at the opposite extreme of what the PP is premised upon--i.e., avoiding the need to guess.
The PP certainly isn't the only game in town, and you may have success with your strategy, but I don't know if what you are describing is a PP approach, either in spirit or in practice.
rules HB put forth?
I was under the, perhaps mistaken impression, I was following the rules? Such as -
Rule 15 - Ask the Right Questions
15.1 "Is there any risk?"
- In what economic circumstances is the investment's price likely to go down?
- Are other investments in your portfolio likely to take up the slack by gaining in those same circumstances?
- What is the most you can lose on the investment?
- Under what circumstances could I lose substancial share - 20% or more - of my investment?
- Under what circumstances could my entire investment be lost?
- Would I have any residual liability - that is, can I lose even more than the cash I invest?
Rule 17 - Whenever You're in Doubt, Err on the Side of Safety