Tagged: rebalancing

Stop Losses and the Permanent Portfolio

Someone wanted to know if using stop losses is a good idea for the Permanent Portfolio. In short, no they aren’t. For the uninitiated, a stop loss is an automatic order in place at the broker to sell a security when a certain low price has been reached. The theory is that you can set a stock price that is, say, 20% below your purchase price and if the stock drops to that level it is sold automatically. The idea...

Portfolio Update: Summer of Chaos!

Well I don’t like checking on the portfolio too much, but I’ve been doing a lot of traveling this summer and apparently when I was not around the Euro is about to go kaput (we can only hope), the US is narrowly missing defaulting if a debt limit is not adjusted, there have been riots through the Middle East, the dollar has reached record lows against the Swiss Franc, there is a major heat wave striking most of the country and probably something else God-awful is sure to happen soon enough.