Gyroscopic Investing

The PP is out of vogue after recent large/fast gains elsewhere - but where the valuations in those alternatives seem high. Perhaps in another year after a major correction the board activity might once again soar. Those that perhaps profit took to start building up PP exposure at recent times might be the ones with the broader smiles. But maybe those that opted for a PP with the LTT element shifted more towards the shorter dated end, 25/25/50 stock/gold/5 year treasury bullet.

??

i think at this point in time the pp in it’s original 4x4 looks much much better .

rates are more likely to come down and even if they rise it looks like the big 4- 5% rise that crushed long term bonds has already happened.

while i certainly wouldn’t use it in the accumulation stage , it definitely is looking better in its original form than it has in a long long time .

in my opinion of course

Always a good time to buy.
That’s part of the beauty of it.

absolutely not true as those still licking their wounds in the 50% drop in long term bonds can tell you along with near zero return on the cash portion of the pp for a long long time.

i warned for years about the pp being overly rate sensitive and a poor choice for investing at those ridiculously low rates and it came to fruition.

but with a 5% rise in rates behind us , those dangers have dropped a huge amount.

we are up near historical norms in interest rates on long term bonds

I wouldn’t expect a market timer to say otherwise.
The pp is not for everyone, and it’s especially not for those timing the market, including interest rates.

well the proof is in the pudding .

many abandoned the pp because of it or they are still licking their wounds from long term bonds which are still off 50% from their peak as well as zero returns on cash at a time other assets were doing very well.

on the other hand we retired a decade ago now and our portfolio is up a million dollars from the day we retired despite spending a million from it over the ten years .

and never had more than 50% equities with most years in the 40% range .

so it was. a fabulous ride for us since retiring and part of that success was avoiding being overly rate sensitive at a time that was very poor for rate sensitive asset s