[Split from older thread Subject: Golden Butterfly Portfolio - is it really that good? by Moderator Misenplace]
Hi, I'm neutral on the question and just reading the comments [in the Golden Butterfly Portfolio thread] with interest, as I'm trying to make my mind between GB and other approaches.
But I see recurring comments about 50 years being insufficient to assess the effect of gold, and a few suggesting that 100 years would be enough.
If that's of any help, there's a 97 years backtrack here, that has the merit of going through the 1929 crisis:
https://www.lazyportfolioetf.com/alloca ... butterfly/
I also see some debate about implementation with futures in the resembling all weather portfolio. Indeed Ray Dalio explains in his book Principles, that when he created the all weather, he implemented it with futures to add leverage to match the returns of equities. The difference between the DIY all weather advertised a bit everywhere on the net and his original idea is that he used the treasuries as collateral to buy managed futures, which gave him one more asset class for the portfolio and a total exposure of 130%. That should provide good downside protection, as managed futures tend to perform well when other assets have strong trends, so it should help cushion situations like 2022 where everything goes down at the same time.
I have no experience in futures, but I find the idea of cushioning portfolios with something that should do well when everything else falls interesting.
Hi, I'm neutral on the question and just reading the comments [in the Golden Butterfly Portfolio thread] with interest, as I'm trying to make my mind between GB and other approaches.
But I see recurring comments about 50 years being insufficient to assess the effect of gold, and a few suggesting that 100 years would be enough.
If that's of any help, there's a 97 years backtrack here, that has the merit of going through the 1929 crisis:
https://www.lazyportfolioetf.com/alloca ... butterfly/
I also see some debate about implementation with futures in the resembling all weather portfolio. Indeed Ray Dalio explains in his book Principles, that when he created the all weather, he implemented it with futures to add leverage to match the returns of equities. The difference between the DIY all weather advertised a bit everywhere on the net and his original idea is that he used the treasuries as collateral to buy managed futures, which gave him one more asset class for the portfolio and a total exposure of 130%. That should provide good downside protection, as managed futures tend to perform well when other assets have strong trends, so it should help cushion situations like 2022 where everything goes down at the same time.
I have no experience in futures, but I find the idea of cushioning portfolios with something that should do well when everything else falls interesting.
Statistics: Posted by brieuc — Mon Apr 01, 2024 12:07 pm — Replies 0 — Views 10
