Where to stash the cash

[DimPrawn]

Permanent Portfolio

Portfolio composition

The Permanent Portfolio investment strategy is based on the economic cycle, which is composed of four basic categories:

Prosperity
Inflation
Deflation
Recession

Four asset classes provide a means of profiting during each of these four economic states, without having to forecast or predict their uncertain arrival or duration.

Stocks – for profit during periods of general prosperity and/or declining inflation.
Gold – for profit during periods of bad inflation; during inflationary episodes gold bullion provides protection against a falling currency and other potential problems.
Long Term Bonds – for profit during periods of declining interest rates; and especially during a deflation. Bonds also do reasonably well during prosperity.
Cash – During a recession, no particular asset class is going to do well. The cash in a Treasury Money Market Fund offers stability when portfolio asset classes fall in price. It also protects purchasing power during a deflation.


You then rebalance the portfolio every quarter, so that the overall percentages remain the same. This effectively sells high and buys low, rinse and repeat. You get good growth and low volatility.

[FatLazyContractor]

You can try investing here.

Looking to invest? Buy shares in this Melbourne brothel - Lost At E Minor: For creative people

HTH

[suityou01]

Portfolio composition

The Permanent Portfolio investment strategy is based on the economic cycle, which is composed of four basic categories:

Prosperity
Inflation
Deflation
Recession

Four asset classes provide a means of profiting during each of these four economic states, without having to forecast or predict their uncertain arrival or duration.

Stocks – for profit during periods of general prosperity and/or declining inflation.
Gold – for profit during periods of bad inflation; during inflationary episodes gold bullion provides protection against a falling currency and other potential problems.
Long Term Bonds – for profit during periods of declining interest rates; and especially during a deflation. Bonds also do reasonably well during prosperity.
Cash – During a recession, no particular asset class is going to do well. The cash in a Treasury Money Market Fund offers stability when portfolio asset classes fall in price. It also protects purchasing power during a deflation.


You then rebalance the portfolio every quarter, so that the overall percentages remain the same. This effectively sells high and buys low, rinse and repeat. You get good growth and low volatility.

Isn't that for capitalism 1.0?

I thought nowadays it's permanent recession with constantly low interest rates. Just one long bust cycle?

[DimPrawn]

Isn't that for capitalism 1.0?

I thought nowadays it's permanent recession with constantly low interest rates. Just one long bust cycle?

This is why you are poor.

[suityou01]

This is why you are poor.

What is?

[Euler]

This thread is like a reprise of Dumb and Dumber.

[FatLazyContractor]

This thread is like a reprise of Dumb and Dumber.

I'd suggest that you continue here

[BlasterBates]

Tied to one index or across many indices?

As many sectors as possible.

mainly US, UK Europe, Far East

Blue chip companies with a mix of different industries.

or buy Exchange Traded Funds

[DimPrawn]

What is?

You thinking there is permanent recession.

Have a look at the S&P 500 since 2009. Look at London Property prices. There's always something making people a lot of money. If something is crashing, something else is booming, the money flows in and out of booming and busting things.

[alreadypacked]

He just sold his BTL hence the pile of cash. Too much hassle with tenants. It just wasn't for him.

The trick with BTL is to buy the house to fit the tenants you want to have. If you buy an ex-council house in a bad area, you are not going to get good tenants. It was not BTL that was a bad idea, it was the house he bought.