Due to tax reasons it would be huge advantage for me to directly invest the stocks part of the PP in individual stocks, instead of funds. At least for a few years. Since I have losses from past stock investments which can only be charged against stock investment profits (but not funds profits).
So my idea is to buy the 30 individual stocks of the German DAX instead of a DAX ETF. What would you recommend regarding the rebalancing?
1) Sell an equal part of all 30 stocks as soon as this PP asset reaches the 35% rebalancing band?
2) Or sell according the profits the individual stocks made (i.e. from the ones with the highest profits sell the most, and keep the ones with the lowest profits)
And the other way around for buying when the asset reaches 15% of the PP (i.e. buy the ones with the highest losses)
Thanks for your thoughts!
Discussion of the Stock portion of the Permanent Portfolio
Moderator: Global Moderator
1 post • Page 1 of 1