YES- I own it in a taxable account.
I like it's risk profile. We use the fund to put mid term expenses (new car, kids education, extra mortgage payments).
My expectation is a yearly return of around 6-7% after taxes.
I think I adequately described my feelings very well in this thread:
http://www.early-retirement.org/forums/f28/anyone-familiar-permanent-portfolio-prpfx-fund-29121.html
I think I adequately described my feelings very well in this thread:
http://www.early-retirement.org/forums/f28/anyone-familiar-permanent-portfolio-prpfx-fund-29121.html
Since there isnt much reason to expect gold to go a lot higher or the dollar much lower
Gee, and I could have sworn that I owned a bunch of managed fund. Oh look, I do!
Nothing to do with managed funds being bad. Any fund that charges a lot and underperforms is a bad fund.
Right now the vast majority of this funds holdings are in gold, silver, US treasury bonds and swiss government bonds denominated in swiss currency.
As I mentioned in the thread referenced, this fund went absolutely nowhere until precious metals went bazonkas and the dollar dropped.
Since there isnt much reason to expect gold to go a lot higher or the dollar much lower, and it being unlikely that US treasury bonds will leap in value to cover the gap, I'd expect this fund to give up a fair portion of its recent gains when gold trickles back down and the dollar gains strength.
The funds holdings in stocks and other items of interest are extremely small.
So on one hand you have a fund that nobody really wanted to buy when it went sideways for decades, but after its shot its wad everyone wants to get into the action.
Remember that thing about buy low, sell high?
Its really only been in the last 5 years that the fund did well. The nasdaq did pretty good for about 5 years back in the 90's. Hope you didnt grab that tiger by the tail in 2001...
What else would have worked? You could have bought equal amounts of vanguards energy, reit, health care, precious metals and emerging markets and seen a far better return, not a lot of net volatility, and actually owned asset classes that move for reasons people can explain. And the expenses would have been less than a third of what you'd have to pay for prpfx.
I'm far less concerned with what this fund has done in the last 7 years than with what it didnt do for 20 years before that, which is make money. Sat there and lost ground to inflation is what it did.
Should gold and the dollar revert to the mean...and they will...you could easily lose 30% in this fund and then go sideways for another 20 years with it.
I know, this fund pushes all the "GOLD!" and "Wow, these are funny asset classes I dont own!" buttons. Theres no way to deal with those sorts of rationalizations.
A fund like this would have made good sense were we still on a gold backed monetary system, coupled with good old switzerlands tendency to never get involved in wars, and with US treasury debt being what everyone in the world wanted to own as the standard in safety.
But its not the early to mid 1900's anymore.
Its never fun to tell someone that their dog's ugly.
And for what its worth, I dont currently own any of these funds.
Still waiting on the explanation as to why you think PRPFX performed the way it did over the last 5 years or why you think it'll repeat the same performance over the next 5.
Why are you promoting funds you don't even own?
What else has had this kind of steady, non-volatile return during the same period?
Any arm-chair expert can go back and pick a set of funds that have HAD good performance.
And as for PRPFX's next 5 years - I will leave that up to the expert fund managers that have steered PRPFX to flawless performance for many years.
This thing is going to the moon.
Psst....One could have invested in vanguards wellesley fund during the same period and actually gotten low volatility, principal stability and reasonable growth without a lot of risk. A $10k investment in 1987 would be worth $60,000. Invested in PRPFX you'd have $35000.
Psst....