In a year where the stock market has provided zero safe places to hide…you may have changed, the markets certainly have, but one thing has not; the Permanent Portfolio.
We’ve reviewed the Permanent Portfolio before but believe it’s time to check in and provide an update on how it’s doing relative to the broad markets now as well as chime in on whether the strategy still has merit going forward. For some quick background, our first original review was written in June of 2013 (click here to see that). Most recently we revisited the topic with an update in November of 2020 (click here) as we climbed out of one of the wildest years in world history amidst a global pandemic.
If you didn’t hit the embedded article links above, the Permanent Portfolio is pretty simple at face value. The Permanent Portfolio is a seemingly basic portfolio allocation strategy created by investment advisor Harry Browne in the 1980’s and outlined in his book Fail-Safe Investing back in 2001. Here’s the secret (simple) sauce and how each asset class should do during repeatable economic cycles:
Have you ever seen survey results that made you question the validity of the data? You don’t have to look far to find surveys that rank everything from blenders to vacuums these days. J.D. Power and Associates is regarded as an industry leader when it comes to surveys and various product rankings; they are best known for customer satisfaction research and ratings on new and used automobiles. Annually they venture into the Financial Services industry, ranking the best ‘Full Service Investment Firms’… the results left us scratching our heads!
For the last two years (2014 & 2015) J.D. Power and Associates has named Edward Jones #1 in their Full Service Investor Satisfaction study. With any survey it is important to dig into how the data was collected and ultimately ranked to see if it carries any weight or credibility. The survey is fairly broad in scope looking at numerous factors such as: how investors feel about their advisor, investment performance, account information, account offerings, commissions/fees, website and problem resolution. While all of these are important one is often overlooked but in our opinion ultimately has the most dramatic impact on a portfolio… fees and expenses. If a portfolio is managed with products and services that have excessive charges does it really matter if the firm has a great website or local office?
Over the course of the last year we have presented many comprehensive and complimentary portfolio reviews for accounts held at Edward Jones. In the following paragraphs we will offer an overview of the company and break down several of the products and services that are common with Edward Jones accounts throughout the country. Articles like this can always ruffle some feathers but perhaps your opinion will align with ours after reading it. Continue reading →
With the holiday season now in the rear view mirror U.S. consumers are being reminded of the world we live in. In the middle of the holiday shopping season Target made an announcement that had an impact on millions of individuals. On December 19th Target announced that 40 million credit and debit cards had been jeopardized by a cyber attack. Since then the number of cards has grown to 70 million, it has been reported that the number could grow to as many as 110 million! Just last week Neiman Marcus released news that it is dealing with a similar situation and other retailers are likely to be in the same boat in the coming weeks.
On Friday (January 10th) Target announced that the security issue had a negative impact on their holiday shopping results. Stores saw sales decline up to 5% (depending on location) when compared to the previous years results. When 4th quarter earnings are announced on February 26, 2014, the additional expenses the company has incurred due to the hacking incident will certainly have an impact. CEO Greg Steinhafel announced that 4th quarter EPS (earnings per share) were lowered to $1.20 – $1.30 from the previous guidance of $1.50 – $1.60. Continue reading →