Change to Purchasing Power Portfolio

The first model purchasing power portfolio was published in March, 2009.  Read the original e-newlsetter to gain understanding about the construction.

In mid August, we made some changes to both the portfolio itself as well as the ongoing management options.  We now offer both a standard rebalancing program as well as a dynamic rebalancing program.  The neutral model portfolio is below.


On October 1, we reduced the allocation for Japan to 2.%% of the portfolio.  We sold 203 shares at $9.72 to accomplish this.

Although we do not know where the prices for the various assets we own are headed, we believe that the era of “correlations of 1” (everything going up and down in sync) is ending.    As such, we expect rebalancing (both static and dynamic) to play a more meaningful role in investors’ portfolios.

We will keep you updated as we make more changes to the portfolio.


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