Category Archives: Investing

Investing

Saxo Bank’s Balanced Portfolio

Posted on by

Just saw some incoming links today from a Saxo Bank article on their new “Balanced Portfolio.” This is a variation of Harry Browne’s Permanent Portfolio and Ray Dalio’s All Weather Portfolio: Introducing Saxo Bank’s Balanced Portfolio Balanced Portfolio: Initial portfolio trades Abstract: A broad diversified portfolio that is designed to collect risk premiums across liquid assets throughout various economic environments has a more stable performance and volatility over time than traditional equity-concentrated portfolios. By allocating equal risk to each economic environment, surprises in the underlying economy have less impact on portfolio performance. They are basically applying the concepts of Harry Continue reading →

Risks with Running Your Own Stock Allocation

Posted on by

Ever get the urge to run your own stock allocation instead of using an index fund? I think a lot of us investors think about this from time to time. But should you do it for your core stock allocation vs. speculative money you can afford to lose? I wouldn’t for the following three main reasons: 1) A broadly based index fund, with billions in assets under management, has experienced personnel to manage the task more efficiently than an individual can accomplish. 2) Secondly, individuals can’t diversify as widely and cheaply as an index fund can. It is easy for Continue reading →

TIPS, Gold, and Lying Politicians

Posted on by

Treasury Inflation Protected Securities (TIPS) are a siren song. You are guaranteed a payment above the government issued Consumer Price Index. Sounds great. Yet ignoring the fact that this yield is negative due to the current market, the government is not capable (or willing) to protect you from the inflation they are causing. Economics and politics are connected at the hip. Numbers in a spreadsheet do not tell you about political risk that often comes with high inflation. In general, know this: 1) High inflation is a political problem in almost every case. The people causing the inflation usually know they Continue reading →