tag:blogger.com,1999:blog-5195878193838322245.post187474515691499823..comments2023-10-21T05:13:53.017-04:00Comments on LIBERTARIAN INVESTMENTS: Performance Review of PRPFXLIBERTARIAN INVESTMENTShttp://www.blogger.com/profile/06470924634367527671noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5195878193838322245.post-64192817680849642872012-06-27T21:06:12.110-04:002012-06-27T21:06:12.110-04:00John: Thanks for the addition to my post. I gener...John: Thanks for the addition to my post. I generally agree with all of your points. I think the PP still has a slight bias towards inflation, but not as much as PRPFX. However, I think this is good because you want to get bigger returns during inflationary periods so that your real returns are steady.<br /><br />For the second commenter, I do not put 100% into PRPFX. I don't put everything into the PP either. I like to speculate a little. But I do use PRPFX for convenience, particularly in my 401k.LIBERTARIAN INVESTMENTShttps://www.blogger.com/profile/06470924634367527671noreply@blogger.comtag:blogger.com,1999:blog-5195878193838322245.post-14989738260974634742012-06-27T14:11:39.198-04:002012-06-27T14:11:39.198-04:00I'm just curious about something. Does this me...I'm just curious about something. Does this mean that you put 100% of your investments into PRPFX?Kinolihttps://www.blogger.com/profile/14975102317380270992noreply@blogger.comtag:blogger.com,1999:blog-5195878193838322245.post-36864387501218190212012-06-26T23:47:22.440-04:002012-06-26T23:47:22.440-04:00I concur with most of your points. Ironically I ju...I concur with most of your points. Ironically I just posted on the permanent portfolio on my own blog a couple of hours ago. PRPFX is in my view the best 2nd choice out there. The 4x25% is the optimum choice but there are people who just don't want to deal with investing but who understand the need to have money salted away. PRPFX serves those people quite well.<br /><br />The asset allocation in PRPFX actually reflects one of Harry Browne's earlier incarnations of the PP. It is weighted towards inflation and harry was a farily big inflation hawk through most of his life. I think it took him a while to embrace the need for equal weighting for deflationary hedges. But PRPFX is weighted with inflation in mind and it is underweighted in dollar assets. That is one reason why it underperformed the 4x25 PP back in 08 but it also has out performed the 4x25 PP for most of the decade because the dollar was relatively weak during that period.<br /><br />Swiss Francs were originally put into PRPFX because Harry thought that this was the closest thing to a sound money currency in the world. The Swiss Franc was the last currency to abandon links to gold which it did only in 2000.<br /><br />To my mind PRPFX has two problems. First it is an actively managed mutual fund that charges fees and expenses about 3x higher than what you would pay using a 4x25 PP. Those fees will seriously detract from your long term returns. The second problem is it's underweighting in the dollar for deflation. This can probably be cured by taking perhaps 10% and putting that into EDV which a bit like long term treasuries on steroids.<br /><br />I guess that in conclusion PRPFX is best in breed if you must go with a managed mutual fund. Over the long term your not likely to get burned too badly. And in the event of a nasty inflation you will almost certainly outperform the 4x25 PP. But if we are heading into a deflationary depression, and I think that a reasonable argument could be made to that effect, PRPFX will not hold up that well.John (Ad Orientem)https://www.blogger.com/profile/14329907942477160166noreply@blogger.com