Easy Money Making Ideas no comments
Posted at 11:30 am in Finance
Boris Tomson
Easy Money Making Ideas
Permanent Portfolio Mutual Fund (PRPFX)
There is also a managed mutual fund that follows this strategy, although not exactly. It is run by the Permanent Portfolio Family of Funds and the ticker symbol is PRPFX.Visit to Apply Today http://moneyfinancehelp.blogspot.com/
Very recently it hasn’t been doing as well. The one-year trailing return is -20.60%, while the Vanguard S&P 500 Index fund has a trailing return of -47.50%, and the Vanguard Target Retirement Income fund has a trailing return of -16.90%. But over the last 5 and 10 years, the fund has beaten out most balanced mutual funds of stocks/bonds.
Food For Thought
I’m not advocating this approach by any means, but I found it intriguing for a variety of reasons. First, it still somewhat follows modern portfolio construction techniques by diversifying across multiple asset classes that are not strongly correlated with each other. Most portfolios these days are only split between stocks and bonds. The stocks part may be split many ways (small cap, international, etc.), but with correlations increasing across the board, that hasn’t really helped add much diversification. Maybe we all need more cash and direct inflation protection.
Second, the Permanent Portfolio is still a passive investment style that does not try to predict the future, time movements in and out of the market, or pick the best mutual fund or hedge fund manager. No stock newsletter or trading systems. You just rebalance across the four broad asset classes if they get lopsided.Visit to Apply Today http://moneyfinancehelp.blogspot.com/
Easy Money Making Ideas
Permanent Portfolio Mutual Fund (PRPFX)
There is also a managed mutual fund that follows this strategy, although not exactly. It is run by the Permanent Portfolio Family of Funds and the ticker symbol is PRPFX.Visit to Apply Today http://moneyfinancehelp.blogspot.com/
Very recently it hasn’t been doing as well. The one-year trailing return is -20.60%, while the Vanguard S&P 500 Index fund has a trailing return of -47.50%, and the Vanguard Target Retirement Income fund has a trailing return of -16.90%. But over the last 5 and 10 years, the fund has beaten out most balanced mutual funds of stocks/bonds.
Food For Thought
I’m not advocating this approach by any means, but I found it intriguing for a variety of reasons. First, it still somewhat follows modern portfolio construction techniques by diversifying across multiple asset classes that are not strongly correlated with each other. Most portfolios these days are only split between stocks and bonds. The stocks part may be split many ways (small cap, international, etc.), but with correlations increasing across the board, that hasn’t really helped add much diversification. Maybe we all need more cash and direct inflation protection.
Second, the Permanent Portfolio is still a passive investment style that does not try to predict the future, time movements in and out of the market, or pick the best mutual fund or hedge fund manager. No stock newsletter or trading systems. You just rebalance across the four broad asset classes if they get lopsided.Visit to Apply Today http://moneyfinancehelp.blogspot.com/