Bubble
Protection!
The U.S. stock market has been in a bubble for years; however investors
who understand valuations and studied past bubbles know that this party will
end. And end it will with stocks
regressing back to their mean and typically overshooting below. Stocks: measured by the S&P 500 Shiller
PE is 136% above its average a mockery of anything resembling investing!
Permanent Portfolio's Worst Decline...
During the 2008 financial crisis, the Permanent Portfolio Class I shares
(PRPFX) experienced a maximum peak-to-trough drawdown of 27.16%. This drop
started from a peak on May 20, 2008, and reached its trough on November 20,
2008, recovering relatively quickly compared to pure equity benchmarks. Price
recovery took 221 trading sessions (roughly 11 months).
S&P 500 Index: Plunged -57% from its pre-crisis
peak to its early 2009 trough, taking over four years to fully recover.
As long as U.S. stocks remain at nose bleed levels I’ll have an anti-thesis towards equities; the upside is now significantly less than the downside. Its time for protection! Gleaned from my model portfolio and/or PRPFX.
Updated Monthly
AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 9/1/26
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