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100% stock VP based on PP principles?

Posted: Tue Apr 10, 2012 8:50 am
by atrchi
Has anybody tried something like this, got any ideas how to improve it?

25% airline stocks (or the ETF "FAA")
25% stocks correlated to oil (I prefer something like BPT here - avoid the futures ETFs or oil companies)
25% natural gas income trusts (e.g. HGT,SJT which don't decay like NG futures, are the best pure-play IMHO)
25% nitrogen fertilizer stocks (highly profitable, but inverse to NG due to their NG-heavy cost structure, e.g. TNH is the pure play here)

The idea is to apply the "see-saw" principles of the PP to an aggressive stock-only VP.

Thanks

Re: 100% stock VP based on PP principles?

Posted: Tue Apr 10, 2012 10:27 pm
by clacy
I have thought about a more volatile version of the PP with a percentage of my funds.  ETF's not stocks, but it would include

Zeros for LTT's
UUP or long dollar positions in forex for cash
Silver for inflation rather than gold
SCV for stocks

Maybe you could capture more via rebalancing due to higher volatility?

Re: 100% stock VP based on PP principles?

Posted: Wed Jun 13, 2012 11:40 am
by Greg
clacy wrote: I have thought about a more volatile version of the PP with a percentage of my funds.  ETF's not stocks, but it would include

Zeros for LTT's
UUP or long dollar positions in forex for cash
Silver for inflation rather than gold
SCV for stocks

Maybe you could capture more via rebalancing due to higher volatility?
Out of curiosity, is there a reason you would use Small-Cap Value for the stocks versus Small-Cap Growth? I would think that Growth would be more volatile than Value but perhaps not?