Gyroscopic Investing

Investors in the PP will want to read Burton Malkiel's editorial in today's Wall Street Journal, "How to Invest in an Overpriced World."

Malkiel, a Princeton economics professor whose book "A Random Walk Down Wall Street," has become an investment classic that foresaw and supported the rise of passive investment strategies, endorses three strategies in his op-ed:

1. Broad diversification of asset classes.

2. Periodic rebalancing.

3. Paying attention to cost.

If you have invested in the PP, you have/are doing all three.

To be sure, Malkiel endorses some assets Harry Browne taught us to shun-- including REITs, emerging markets, and preferred shares. Nonetheless, there is plenty here to argue about as we face a new year in which all assets seem richly valued and, as Grandpa used to say, "Thur ain't nuthin' cheap out thur!"

Found it, thanks!

Btw, when I searched it popped up along with the line:

Appeared in the 1月 23, 2018, print edition.

月 is the Chinese (and Japanese) character for month, so 1月 is January. Not sure why it's on my screen, though.

The article pays homage to Bogle and the recommendations are aligned with the Boglehead philosophy.
The PP is referenced in the BH wiki as a passive portfolio which fits Malkiel's perspective rather well.

dualstow wrote:Found it, thanks!

Btw, when I searched it popped up along with the line:

Appeared in the 1月 23, 2018, print edition.

月 is the Chinese (and Japanese) character for month, so 1月 is January. Not sure why it's on my screen, though.

Every once in a while I see Chinese characters on these phpBB forums, Google news, and a few other places. I think I posted a screenshot here before. I simply assume Unit 63198 is targeting me and move on with my life.

jhogue wrote:Investors in the PP will want to read Burton Malkiel's editorial in today's Wall Street Journal, "How to Invest in an Overpriced World."

Malkiel, a Princeton economics professor whose book "A Random Walk Down Wall Street," has become an investment classic that foresaw and supported the rise of passive investment strategies, endorses three strategies in his op-ed:

1. Broad diversification of asset classes.

2. Periodic rebalancing.

3. Paying attention to cost.

If you have invested in the PP, you have/are doing all three.

To be sure, Malkiel endorses some assets Harry Browne taught us to shun-- including REITs, emerging markets, and preferred shares. Nonetheless, there is plenty here to argue about as we face a new year in which all assets seem richly valued and, as Grandpa used to say, "Thur ain't nuthin' cheap out thur!"

I think gold is pretty cheap.

That's about it.

Agreed.

I don't know whether or not it'll help gold, but the Doomsday Clock is now 2 minutes to midnight:

http://www.kurzweilai.net/the-doomsday- ... e-midnight

dualstow wrote:I don't know whether or not it'll help gold, but the Doomsday Clock is now 2 minutes to midnight:

http://www.kurzweilai.net/the-doomsday- ... e-midnight

Don't worry. As soon as the next Democrat takes office they'll turn back the hands of time.

Libertarian666 wrote:

jhogue wrote:Investors in the PP will want to read Burton Malkiel's editorial in today's Wall Street Journal, "How to Invest in an Overpriced World."

Malkiel, a Princeton economics professor whose book "A Random Walk Down Wall Street," has become an investment classic that foresaw and supported the rise of passive investment strategies, endorses three strategies in his op-ed:

1. Broad diversification of asset classes.

2. Periodic rebalancing.

3. Paying attention to cost.

If you have invested in the PP, you have/are doing all three.

To be sure, Malkiel endorses some assets Harry Browne taught us to shun-- including REITs, emerging markets, and preferred shares. Nonetheless, there is plenty here to argue about as we face a new year in which all assets seem richly valued and, as Grandpa used to say, "Thur ain't nuthin' cheap out thur!"

I think gold is pretty cheap.

That's about it.

I thought of expressing some skepticism of Libertarian666's all-weather enthusiasm for gold until I saw the following headline in today's Wall Street Journal:

"Gold Surge Accelerates as Dollar Falls:

jhogue wrote:

Libertarian666 wrote:

jhogue wrote:Investors in the PP will want to read Burton Malkiel's editorial in today's Wall Street Journal, "How to Invest in an Overpriced World."

Malkiel, a Princeton economics professor whose book "A Random Walk Down Wall Street," has become an investment classic that foresaw and supported the rise of passive investment strategies, endorses three strategies in his op-ed:

1. Broad diversification of asset classes.

2. Periodic rebalancing.

3. Paying attention to cost.

If you have invested in the PP, you have/are doing all three.

To be sure, Malkiel endorses some assets Harry Browne taught us to shun-- including REITs, emerging markets, and preferred shares. Nonetheless, there is plenty here to argue about as we face a new year in which all assets seem richly valued and, as Grandpa used to say, "Thur ain't nuthin' cheap out thur!"

I think gold is pretty cheap.

That's about it.

I thought of expressing some skepticism of Libertarian666's all-weather enthusiasm for gold until I saw the following headline in today's Wall Street Journal:

"Gold Surge Accelerates as Dollar Falls:

I do like gold a lot, but that doesn't mean I always think it is cheap.

Thanks for correcting my mis-perception of your views on gold.

You may be correct that gold is under-valued at the moment, but how can you tell?

jhogue wrote:I thought of expressing some skepticism of Libertarian666's all-weather enthusiasm for gold until I saw the following headline in today's Wall Street Journal:

"Gold Surge Accelerates as Dollar Falls:

It's mid-afternoon now, and all I see is 'Gold Falls as Dollar Rebounds, Treasury Yields Rise' in the same paper.

P.S. also -
'The Highest-Yielding Treasury Bond Isn’t Declining Like Its Peers'
The yield on the 30-year bond has been relatively stable, weighed down by doubts about a long-term pickup in inflation

Red across the landscape today.
Doing nothing.

buddtholomew wrote:Red across the landscape today.
Doing nothing.

No fun. I keep listening to podcasts where the speakers talk about a world where bonds and stocks aren't anti-correlated... where they go down together. These thoughts don't make me happy. The more I think about it, the more I think about gold and cash.

Cash is going up! It never feels good, though.

jhogue wrote:Thanks for correcting my mis-perception of your views on gold.

You may be correct that gold is under-valued at the moment, but how can you tell?

It is a couple of years off a major bottom and has been rising slowly and erratically for those years. There is no enthusiasm for it in the financial media.

Also, buddtholomew hates it.

But that last one may be permanent and thus would not have any predictive value.

Do you think that bitcoin is affecting the gold market? If so, how??

jhogue wrote:Do you think that bitcoin is affecting the gold market? If so, how??

Who knows? But I doubt it has any significant influence. The markets for the two assets are too different, in my opinion anyway.

jhogue wrote:Do you think that bitcoin is affecting the gold market? If so, how??

viewtopic.php?f=5&t=9238&hilit=gold+losing+bitcoin