The GOLD scream room

[dualstow]

Seen on the Bogleheads forum. Too good not to share.

"Are bonds worth it?"
"yes of course you have to be diversified!"

"Are negative yielding bonds worth it?"
"yes, for the diversification value. Yield is not so important."

"Is gold worth it?"
"no, gold has no yield"

Knuckleheads cognitive dissonance intensifies

Gold must have said something really mean to Bogleheads back in the early days.

[Kbg]

That there is funny with a capital F.

[Kriegsspiel]

Hey, that gold price bros.

*knock on wood*

[Lonestar]

Seen on the Bogleheads forum. Too good not to share.

"Are bonds worth it?"
"yes of course you have to be diversified!"

"Are negative yielding bonds worth it?"
"yes, for the diversification value. Yield is not so important."

"Is gold worth it?"
"no, gold has no yield"

Knuckleheads cognitive dissonance intensifies

So they didn't mention that you can't eat it?

Has there ever been a gold thread on that forum that did not at some point mention wedding rings, guns, ammo or canned beans?

[Libertarian666]

Seen on the Bogleheads forum. Too good not to share.

"Are bonds worth it?"
"yes of course you have to be diversified!"

"Are negative yielding bonds worth it?"
"yes, for the diversification value. Yield is not so important."

"Is gold worth it?"
"no, gold has no yield"

Knuckleheads cognitive dissonance intensifies

So they didn't mention that you can't eat it?

Has there ever been a gold thread on that forum that did not at some point mention wedding rings, guns, ammo or canned beans?

Not as far as I know.

Here's the latest entry in the Knucklehead "analysis" of gold: https://www.bogleheads.org/forum/viewto ... 8#p5359308

[Lonestar]

It seems that about every three days there is a "should I own gold" thread on that forum. It's like going on a firearms forum and asking "should I turn my guns in to the government". Bless their hearts, they mean well but it's the same old answers over and over.

I remember the long thread about the PP several years ago. The concept and reasoning of gold and LLT's in a portfolio just could never quite get through.

[Tortoise]

The Knuckleheads are anti-LTT as well? Huh. What’s their main reason — because a diversified total bond market fund is supposedly safer, or because Treasury bonds tend to have the lowest yield?

[mathjak107]

The Knuckleheads are anti-LTT as well? Huh. What’s their main reason — because a diversified total bond market fund is supposedly safer, or because Treasury bonds tend to have the lowest yield?

most think in terms of total bond funds which have little lifting power in a flight to safety

[Lonestar]

The Knuckleheads are anti-LTT as well? Huh. What’s their main reason — because a diversified total bond market fund is supposedly safer, or because Treasury bonds tend to have the lowest yield?

most think in terms of total bond funds which have little lifting power in a flight to safety

I agree! After you mix in corporates, mortgage backed, and agencies, you have lost a lot of flight to safety aspect.

I feel when one is so deeply entrenched in the "classic" 2 or 3 fund lazy portfolio approach, they don't think enough about negative correlation. That seems to be the reason they have so many problems with gold. It just proves that looking at asset classes in concert is way more difficult than looking at them individually.

[mathjak107]

Typical portfolios have equities as the lead horse and everything else is weak ...rebalancing actually hurts you as you pull money out of the powerful asset and move to a less capable one .

The pp is different ....gold and long term treasuries are as volatile or more volatile then stocks and the results from rebalancing are very different.

I just finished migrating the two portfolios I use in to the one pp .......

I am not comfortable at all looking out so with our portfolios at record highs I wanted to get very defensive....this is the most I ever had invested in the pp ..... each asset is 7 figures .....

[stuper1]

..... each asset is 7 figures .....

I like the sound of that! Very nice, congratulations. I would hope to be there one day, but probably not. That's okay, I can admire the view from here.

[mathjak107]

..... each asset is 7 figures .....

I like the sound of that! Very nice, congratulations. I would hope to be there one day, but probably not. That's okay, I can admire the view from here.

It can be scary at times .....it is impossible not to see how each part of the portfolio is doing and those pieces are very volatile to say the least ....so the dollar swings are insane ...a mere 1% swing is over 10k in an asset .

But being I hit new highs it was time to get as super defensive as I ever have been with this mess we are living through

[Libertarian666]

Typical portfolios have equities as the lead horse and everything else is weak ...rebalancing actually hurts you as you pull money out of the powerful asset and move to a less capable one .

The pp is different ....gold and long term treasuries are as volatile or more volatile then stocks and the results from rebalancing are very different.

I just finished migrating the two portfolios I use in to the one pp .......

I am not comfortable at all looking out so with our portfolios at record highs I wanted to get very defensive....this is the most I ever had invested in the pp ..... each asset is 7 figures .....

All before the decimal point?

[mathjak107]

Typical portfolios have equities as the lead horse and everything else is weak ...rebalancing actually hurts you as you pull money out of the powerful asset and move to a less capable one .

The pp is different ....gold and long term treasuries are as volatile or more volatile then stocks and the results from rebalancing are very different.

I just finished migrating the two portfolios I use in to the one pp .......

I am not comfortable at all looking out so with our portfolios at record highs I wanted to get very defensive....this is the most I ever had invested in the pp ..... each asset is 7 figures .....

All before the decimal point?

Last I looked it was

[Smith1776]

Gold isn't quite at an all-time high in USD, but in CAD it has long surpassed that!

gold.png (28.88 KiB) Viewed 6851 times

[Libertarian666]

Gold isn't quite at an all-time high in USD, but in CAD it has long surpassed that!


gold.png

That's nothing. In Zimbabwe dollars it's at a zillion $/oz!

[Smith1776]

That's nothing. In Zimbabwe dollars it's at a zillion $/oz!

Damn. Foiled again!

[Ad Orientem]

Gold at $1861 in overnight trading. Only $39 from the record.

[Smith1776]

Gold at $1861 in overnight trading. Only $39 from the record.

It seems Craigr was right about the PP's assets being like a rudder on a ship. They take a little time to turn. Long term bonds didn't respond immediately in the '08 crisis either, but they eventually did. Perhaps we're seeing something similar with gold here.

I suppose that makes sense though. This probably dovetails closely with the academic research concerning the momentum factor! There are limits to arbitrage and markets take time to assimilate new information.

[Kriegsspiel]

Shit, bros, gold is really getting up there. I'm still not used to it being a performer.

[sophie]

Wow this is a shock. It is also strange....since July 1, all the assets are up including long bonds. I keep thinking one of the shoes has to drop. Who knows which one it will be...and happily, it doesn't matter. Harry Browne, whereever you are, thank you!

Except of course if it's stocks, it will be poison to stock/bond portfolios like the one in my corporate retirement accounts. How I wish it allowed gold, or it would have been a PP (or GB) a long time ago.

[Libertarian666]

Wow this is a shock. It is also strange....since July 1, all the assets are up including long bonds. I keep thinking one of the shoes has to drop. Who knows which one it will be...and happily, it doesn't matter. Harry Browne, whereever you are, thank you!

Except of course if it's stocks, it will be poison to stock/bond portfolios like the one in my corporate retirement accounts. How I wish it allowed gold, or it would have been a PP (or GB) a long time ago.

Can you take an in-service rollover from your corporate retirement account(s)? Some corporations allow that.

[sophie]

It's unfortunately a rather restrictive plan. I had already looked into in-service rollovers, and my employer doesn't allow them. I've also asked about brokerage windows, same response. I'm just thankful it's at Vanguard and not one of those awful high fee places like John Hancock.

[buddtholomew]

The PP and Gold have performed above any of my expectations.
I stopped tracking Golds performance after loss harvesting to offset gains in other assets and switching between GLD/IAU but according to VG I now have a 92% gain LTD on my holdings

[Ad Orientem]

Gold up another 1.4% to $1870. Now within striking distance of all time record of $1900 which is also probably the near term resistance.