As If on Cue...

General Discussion on the Permanent Portfolio Strategy

Moderator: Global Moderator

Post Reply
User avatar
stpeter
Full Member
Full Member
Posts: 93
Joined: Tue Nov 26, 2013 8:26 pm

As If on Cue...

Post by stpeter »

As if on cue given discussion about our quiet forum, The Wall Street Journal just published an article entitled "Three Alternatives to the Classic 60/40 Portfolio to Consider Now" and the first portfolio featured is the 4x25 PP (the other two are the All-Weather Portfolio and the 30/70 Flip Portfolio). Here are a few quotes:

"Dividing your portfolio equally in four asset categories—stocks, bonds, commodities and cash—is a well-balanced long-term diversification strategy for investors to consider..."

"This investment strategy is designed to perform well across various economic conditions including expansion, recession, inflation and deflation by balancing risk across a range of asset classes. The focus is on resilience and capital preservation as well as total returns..."

Perhaps we'll have more visitors soon. 8)
User avatar
dualstow
Executive Member
Executive Member
Posts: 15423
Joined: Wed Oct 27, 2010 10:18 am
Location: searching for the lost Xanadu
Contact:

Re: As If on Cue...

Post by dualstow »

Ha!
PM ISHIBA OF JAPAN IS STEPPING DOWN
User avatar
Xan
Administrator
Administrator
Posts: 4572
Joined: Tue Mar 13, 2012 1:51 pm

Re: As If on Cue...

Post by Xan »

Oh no! Is this a sign of a top?
User avatar
dualstow
Executive Member
Executive Member
Posts: 15423
Joined: Wed Oct 27, 2010 10:18 am
Location: searching for the lost Xanadu
Contact:

Re: As If on Cue...

Post by dualstow »

I’m curious about that 30/70 Flip portfolio mentioned in the article.
His rationale: Higher interest rates and high stock valuations imply a narrow equity premium—the additional return investors expect from stocks compared with risk-free government bonds. Investors can achieve a similar rate of return with less risk investing in a variety of fixed-income and stock investments.
It’s not for me, but it’s an interesting idea.
PM ISHIBA OF JAPAN IS STEPPING DOWN
Post Reply