tag:blogger.com,1999:blog-6658991406619889409.post1580451246024568088..comments2022-02-22T15:42:27.567+08:00Comments on Singapore Permanent Portfolio Investment Strategy: Can I modify the Permanent Portfolio allocation from time to time to improve performanceEppshttp://www.blogger.com/profile/04240900475803378173noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6658991406619889409.post-74003590931434828422012-09-26T19:17:42.568+08:002012-09-26T19:17:42.568+08:00Hi Formula1. In the short term, splitting cash int...Hi Formula1. In the short term, splitting cash into stock, gold and bonds can increase the dollar value returns, yet this comes with several drawbacks. In the longer term, if sudden major market corrections occurs, there is no cash component to buffer the drop in portfolio value. Near bottom of major corrections, there is also no cash to buy cheap stocks and gold at 20% discount or more. Part of the portfolio's cash component can also be your personal emergency fund, so having some cash on hand is good to protect oneself and be prepared for opportunities. This way there is also no need to market time when to have cash on hand and when to put cash into other assets. In future, interest rates may also rise and money market funds or fixed deposit will have higher interest returns. It is better to be consistent now to always have the 25% cash component.<br />Epps<br />P.S. I run this blog.Eppshttps://www.blogger.com/profile/04240900475803378173noreply@blogger.comtag:blogger.com,1999:blog-6658991406619889409.post-46136019085281496442012-09-26T15:55:35.561+08:002012-09-26T15:55:35.561+08:00Hi Alvin,
If cash is giving 0% return, do you thin...Hi Alvin,<br />If cash is giving 0% return, do you think that the portfolio would give a higher dollar value returns if the investment is split among the 3 asset classes consisting of Stock, Bond & Gold? Please comment. Thank you.<br />RichardFormula1https://www.blogger.com/profile/11111766579308792788noreply@blogger.com