Gyroscopic Investing

Down 1.96%

HB PP down .33%

PRPFX's energy and mining exposure probably caused a lot of this.

It's a good day to see the differences between PRPFX and the HB PP.

There is a huge difference between PRPFX and the HBPP.  PRPFX is definitely "juiced" to perform better durind prosperity and inflation, but will always under-perform during deflation or risk thereof. 

I hold PRPFX, but I also realize that you will have bigger draw downs than the HBPP.

Today also shows how EDV can help smooth out the PRPFX ride (even though it is pretty smooth to begin with).

PRPFX down 1.96% today

EDV up 5.18% today

PRPFX down 2.45% today.

HB PP down .24% today.

Dang!

Think I am going to sell PRPFX and put proceeds in 4x25 DIY PP. PRPFX going down TOO much for me.

BRESLOW wrote: Think I am going to sell PRPFX and put proceeds in 4x25 DIY PP. PRPFX going down TOO much for me.

Yep - it may be PRPFX has seen its day for a while.

MediumTex wrote: PRPFX down 2.45% today.

HB PP down .24% today.

Dang!

But EDV was up 6.68% today - so 90%PRPFX/10%EDV combo should net what - a drop of 1.77% for the PRPFX/EDV? 

Ariadne22 wrote:

MediumTex wrote: PRPFX down 2.45% today.

HB PP down .24% today.

Dang!

But EDV was up 6.68% today - so 90%PRPFX/10%EDV combo should net what - a drop of 1.77% for the PRPFX/EDV? 

EDV is doing its job helping to keep PRPFX out of trouble, but today was just a very bad day for the fund.

As someone using both approaches, let it be said I am doing a serious re-appraisal of PRPFX.  Under-allocation of long-term Treasuries, irrelevant Swiss Francs, and a questionable selection of aggressive individual stocks.  Problematic.

MediumTex wrote: EDV is doing its job helping to keep PRPFX out of trouble, but today was just a very bad day for the fund.

This PRPFX + EDV scheme was a really good call on your part.  I think you've saved a lot of people money.

Today is looking like it's going to be REALLY bad.

A storm is coming. The flight to cash has begun. Time to close up the windows.

Gumby wrote: A storm is coming. The flight to cash has begun. Time to close up the windows.

Gumby-

What are you suggesting? Is this comment specific to PRPFX, the HBPP or any investment other than Cash?

Best-
Budd

Well, I recently bought a small amount of PRPFX a couple of weeks ago at average cost of $49.24 without the EDV cushion.  So far, it has declined 6.4%.  Saw Cuggino on TV recently who said fund was up 7.6% for the year.  If things keep declining, PRPFX may show a 2-3% return this year, if that.

Wondering if I should sell or wait things out.

Today 9/23/2011

PRPFX -1.85%
HB ETF -1.73%

For the HB ETF -  I have been tracking since March 1 via yahoo portfolio....and rebalanced in August - this is not real money  as I was just trying to gauge my comfort level on the ETF version.
(HB ETF=IAU,SHY, TLT, VTI)

Ariadne22 wrote: Wondering if I should sell or wait things out.

My vote is on waiting it out, and maybe buying some TLT or EDV.

Ariadne22 wrote: Well, I recently bought a small amount of PRPFX a couple of weeks ago at average cost of $49.24 without the EDV cushion.  So far, it has declined 6.4%.  Saw Cuggino on TV recently who said fund was up 7.6% for the year.   If things keep declining, PRPFX may show a 2-3% return this year, if that.

Wondering if I should sell or wait things out.

But still better than cash, right?

longeyes wrote:

Ariadne22 wrote: Well, I recently bought a small amount of PRPFX a couple of weeks ago at average cost of $49.24 without the EDV cushion.  So far, it has declined 6.4%.  Saw Cuggino on TV recently who said fund was up 7.6% for the year.   If things keep declining, PRPFX may show a 2-3% return this year, if that.

Wondering if I should sell or wait things out.

But still better than cash, right?

I bought a little PRPFX yesterday and today.

The fear is pretty thick right now, but it won't stay this way forever.

Normally, when the mood is this foul it's a good time to buy.

I was thinking the same thing as Medium Tex. I was planning on doubling the size of our PP on gold options expiry day next Tuesday. I guess that might pretty well be a bottom for the current gold rout Stocks might have a further plunge if the euro finally gets disolved and all the banks go bust.

Ariadne "Well, I recently bought a small amount of PRPFX a couple of weeks ago at average cost of $49.24 without the EDV cushion.  So far, it has declined 6.4%.  Saw Cuggino on TV recently who said fund was up 7.6% for the year.  If things keep declining, PRPFX may show a 2-3% return this year, if that. Wondering if I should sell or wait things out."

For myself, I reason that whether or not to sell does not depend on what the price was when I bought an asset. All that matters is whether it makes sense to own it now and in the future. With hindesight it would have been better to have been 100% EDV a couple of weeks ago but we can never replay the past and so looking forward, the 90%PRPFX:10%EDV blend probably makes sense just as it generally does. Afterall  if we could replay the past, the best investment would be lottery tickets with the winning numbers .

stone wrote: I was planning on doubling the size of our PP on gold options expiry day next Tuesday. I guess that might pretty well be a bottom for the current gold rout.

Yep I plan to do something similar (having read through JESSE'S CAFÉ AMÉRICAIN blog when you mentioned it earlier this month)... unless I think of a reason to bottle it.

stone wrote: Stocks might have a further plunge if the euro finally gets disolved and all the banks go bust.

Ah yes thanks for that

PRPFX should have a much better day today.

...and back to bad day mode today.

I think everyone is just selling everything right now.  Once everyone gets their cash and sits on it for a few months they will start buying everything they sold back again.

I think you're right.  PRPFX and HBPP are still the best game in town.  I've been holding my nose and buying systematically.  This is a long-term play; always has been.

Glad to see you all are getting along well in spite of the fear and loathing which has not helped gold at all. I've watched all my PRPFX go from about 8% YTD to 0.39% YTD. Will anyone be kind enought to post the classic PP YTD number? TIA

PRPFX 12 mos return about 8%. I, for one would be delighted to get 2% out of PRPFX by EOY.

My old faithful Vanguard Wellesley (VWINX) is outperforming PRPFX on the YTD business; up 3.3% . 60% bonds/40%income stocks.

I noticed someone said they might be selling? Not a good idea IMO, after all you must do something with the money.