1. Lots to comment on here…

    Firstly, remind me never to sign up for the Biomacromolecules Journal. As riveting as it sounds, I would much prefer you give us a brief synopsis on your blog.

    Secondly, sorry to hear about your great grandparents. Not sure how close you were with them.

    Tertiary(?), I love what you said about NOT being in a hurry to pay down your mortgage balance. Sure it's great to be debt free, but there are too many reasons not to. The declining dollar and increasing inflation that will result from QE 1-3 is a wonderful thing for ANYONE with debt. Even if mortgage interest is no longer tax deductible.

    Quadrupally(?), I've always appreciated your investment approach. Very fundamental – Benjamin Graham would be proud. The ONLY thing I would consider changing would be the % allocated to bonds. Sooner or later, whenever rates rise, bonds will suffer (as you know).

    Thanks for sharing all of the details.
    My recent post This Blog is Under Construction

    • Thanks so much for reading! Great questions!

      Regarding the % allocated to bonds, I'm curious – how do you prefer to invest your fixed income portion of your portfolio? Cash or some other vehicle?
      My recent post The Art of Meaningful and Inexpensive Gift Giving

  2. Michael Block says:

    I've read this before but read it again and wanted to leave a short comment.

    Be careful comparing the Permanent Portfolio to the S&P500. The latter is all stock where the former is considered an actively managed conservative asset allocation fund holding cash, stocks, bonds and commodities.

    Lastly, I would also caution allocations to bonds. Rates will rise and both bond mutual funds and bond index funds provide no protection to to principal. Individual bonds pay a coupon and return principal at maturity. Both individual bonds, bond funds and bond index funds are all subject to the volatility of the “markets.” Shorter durations will minimize the susceptibility to a decrease in prices due to a rise in interest rates

    • Thanks for stopping by Mike!

      I agree that the Perm Port. is quite different than the S&P500. That comparison is done more for fun comparison purposes than anything else. I just have a very small amount of exposure to that style.

      I also agree with being careful about bonds. The majority of my fixed income holdings are short-term bond index fund, which is pretty stable in price compared to longer term ones.

      My recent post Grow Your Own Vegetables In Your Conservatory

Speak Your Mind


CommentLuv badge