Why Don't Money Managers Get It?
Posted: Thu Jul 03, 2014 8:33 pm
For many years I had my money at Fidelity. I got tired of my account manager calling me and telling me how "dangerous" my account was keeping 25% of my money in GLD and how I was missing out on the great "bull run." I gave up and moved my money to Schwab thinking they would get it. However, the people over there are now suggesting I lower my gold exposure and pile in to more equities. If you listen to them, you would start to believe that your whole portfolio is ten minutes from falling out of bed.
I stuck with PP last year for zero gain as gold got smeared and stocks rose 37%. Why would I sell the gold now with equities at all time highs and gold recovering to some degree and load up on stocks? It's a lonely feeling investing in PP like living in a remote island. I checked my stats for this year and I am up about the same percentage as the S/P. Over the last ten years, the gains are almost the same, even with missing out on last year gains but surviving the 2008 washout. Our system works without the volatility of 60/40 traditional allocation. At some point stocks will again get taken to the woodshed and gold will go on another run, you just don't know when. The difference is you don't have to worry about it when it does.
I stuck with PP last year for zero gain as gold got smeared and stocks rose 37%. Why would I sell the gold now with equities at all time highs and gold recovering to some degree and load up on stocks? It's a lonely feeling investing in PP like living in a remote island. I checked my stats for this year and I am up about the same percentage as the S/P. Over the last ten years, the gains are almost the same, even with missing out on last year gains but surviving the 2008 washout. Our system works without the volatility of 60/40 traditional allocation. At some point stocks will again get taken to the woodshed and gold will go on another run, you just don't know when. The difference is you don't have to worry about it when it does.