The permanent portfolio fund is a type of investment that is made to offer a solid performance whatever of what is going on in the market. Here are the basics of permanent portfolio funds and what they have to offer you as an investor.
Permanent Portfolio Fund
The idea for permanent portfolio funds that you have a mutual fund that could withstand any market conditions. This was accomplished by investing in many different types of securities. Putting emphasis on investing in things that you could find outside of the stock market.
A permanent portfolio school of thought was to invest in an equal proportion of stocks, bonds, cash, and gold. Therefore, the original investment mix was 25% of each type of investment. In today’s conditions the current composition of the fund is 25% precious metals, 10% Swiss franc bonds, 15% real estate and natural resource stocks, 15% aggressive growth stocks, and 35% in government securities such as T-bills. In this way investors funds regardless of what happened in the economy feel more secure. Although with this fund you have to expect a slow and steady growth curve. This type of fund has been proven to gain value steadily over time. We encourage you to try it, if you want to create a fund that is somewhat secure and has steady gains as time goes on. At best, you will have an asset that will have paid out some income at the same time have grown in value with a relatively low-risk investment approach that lets you keep your money over the long-term. It sounds very viable especially in these volatile times when the stock market tends to fluctuate and the stability and strength economy is somewhat unsure, the permanent portfolio may work for you.
An interesting interview with Jim Rogers is up at Businessweek.com
So you reject the advice about diversified portfolios?
Diversification is something that stock brokers came up with to protect themselves, so they wouldn’t get sued [for making bad investment choices for clients]. Henry Ford never diversified, Bill Gates didn’t diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket.
Continue reading How to invest during a financial crisis – The Jim Rogers way
Shares of BP recovered over the past week. At least, BP shares recovered from 52-week oil spill low (as well as a new 14-year low) that was touched on Friday, June 25, when fears spiked that Hurricane Alex would shut down BP’s oil spill containment effort.
By far the largest block of survey votes pinned an acceptable “buy” BP value at $25, with 28% of survey respondents saying that if BP hit that mark, it would signal the time to place a long bet.
Many potential BP buyers, has even lower expectations for the stock. Approximately 17% of survey respondents said they would buy BP at $20. Another 19% of survey takers indicated that BP shares would have to dip below $20 before they became interested in the stock.
Lurking beneath all of the reluctance to step up and take a bet on BP is the view demonstrated by 17% of survey takers: hurricane fears might be overblown, these votes said, but when it comes to BP, hurricanes or no hurricanes, the stock is ultimately headed for bankruptcy.
Although making resolutions to improve your financial situation is a good thing to do at any time of year, many people find it easier at the beginning of a new year. Regardless of when you begin, the basics remain the same. Here are my top ten keys to getting ahead financially. Continue reading Ten Tips for Financial Success
Everyone is selling. Recession is on the horizon. Investors are nervous trying to minimize loses. One may panic, but the one who are steadfast will be the one reaping all the profits. It is the time to own recession proof stocks which I’ll tackle in this post.
There are basically two approaches you can do when the economy is on a downturn.
Continue reading Tips in owning recession proof stocks
Interesting artcle at cnn.money.com regarding Boeing stock. With the added input of two analysts.
NEW YORK (Fortune) — Boeing stock has plunged as air travel swoons globally. This year is expected to be only the third time air traffic has declined in its 50-year history.
Boeing Shares have dropped 60% since their peak in October of 2007, and earnings have sunk 50% in the first quarter as airlines delay or cancel orders, Boeing begins to cut production, and investors worry about Pentagon spending cuts.
Continue reading Stocks to Watch – Boeing
If you are asking that question you may find this article a bit disconcerting.
IEA slashes forecast for oil demand – again
Agency sees global demand declining by 2.4 million barrels per day in 2009 amid recession.
Continue reading Is it a good time to invest in oil?
The Dow Jones Industrial Average briefly edged above 11,000 Friday, but finished just below the mark, as promising economic data and waning Greece debt fears helped power the assent, while investors began looking to company earnings next week.
The Dow, which finished the day after adding 70 points, or 0.6%, to 10,997, crossed the 11,000-point threshold near the closing bell for the first time since September 2008. The S&P 500 improved 8 points, or 0.7%, to 1194, while the Nasdaq went ahead by 17 points, or 0.7%, at 2454.
The tech-heavy Nasdaq also led the other major averages for the week, adding 2.1%. The S&P gained 1.4% since last Thursday’s close, while the Dow picked up 0.6%.