Re: Multi-Region Permanent Portfolio
Posted: September 10th, 2020, 2:05 pm
Hi 1nvest.
Re your discussion of bonds above, whilst I understand them at a superficial level, I regard myself as less qualified to judge their relative merits than with stocks. This is not to say I am any kind of stocks guru
Consequently, the mix of a conservative (in context) ETF, VAGP, with an investment trust which invests in racier, higher yielding fixed income assets. VAGP's bond portfolio has an average maturity of around 9 years as I recall - so there is certainly some interest rate sensitivity there - but not extreme. I judge that active management in trusts like HDIV, IPE and CMHY will do better than an ETF in the higher yielding market segment, but whether that's true at all (and if so, if it's sufficiently true to counteract the higher fees) only the very long term will tell.
Hence, not putting all my eggs in one basket and having the 50/50 split.
Regards, Newroad
Re your discussion of bonds above, whilst I understand them at a superficial level, I regard myself as less qualified to judge their relative merits than with stocks. This is not to say I am any kind of stocks guru
![Wink ;)](./images/smilies/icon_e_wink.gif)
Consequently, the mix of a conservative (in context) ETF, VAGP, with an investment trust which invests in racier, higher yielding fixed income assets. VAGP's bond portfolio has an average maturity of around 9 years as I recall - so there is certainly some interest rate sensitivity there - but not extreme. I judge that active management in trusts like HDIV, IPE and CMHY will do better than an ETF in the higher yielding market segment, but whether that's true at all (and if so, if it's sufficiently true to counteract the higher fees) only the very long term will tell.
Hence, not putting all my eggs in one basket and having the 50/50 split.
Regards, Newroad