Take a look at it...it pretty much tracks the dow with less volatility...you've got a big expense ratio...its just not worth it...plus, most investors don't have the time frame this thing requires. I'd not buy it for openers and then don't hold it period. 20% in gold...that's nuts.
Since I added it a couple of mos. ago, it's actually dropped farther than my GLD ETF, so there's no point blaming gold alone. The fund is also heavily into Treasuries. Treasury bills fooled even the bond king and returned 11% and higher last year. There's no way they can repeat that performance. Gold plus treasuries and the rest of the mix is a recipe for a portfolio that's due for a decline. It shouldn't be too quick, tho if it maintains the present rate I'd lose 35-40% with this fund in the next year. Better than 2008, when it was closer to 50% with many funds.
I plan to bail out when I'm closer to 20% down.
Actually, you are wrong. In the last year it has done a lot WORSE than the Dow and the S and P. Seems to be reverting back to it's first 20 years of performance. That being negative 1%-2% a year on average.
Gold, just like oil, now tracks the stock markets. It has nothing to do with supply or demand. When the market is down, gold goes down with it. No reason, it just does. The markets are totally in the hands of the speculators.
Analysts will tell you that all mutual funds eventually perform near the overall market performance. While PRPFX certainly has performed well the past 10 years or so, it does not indicated that the fund's formula for investing will allow it to perform above market levels in the future. The recent large movements downward, indicate to me that the PRPFX has lost some of its advantage. I am hoping that I am wrong, and that we will see a reversal in the very near future. Losing 1.5% a day is not acceptable for a conservative fund.
I'm a long term investor in prpfx and have overall been very pleased, but I'm increasingly concerned about its ability to achieve its mission in today's currency-driven financial environment. In particular, I don't like its prospects in the event of a Euro bustup and a strong dollar appreciating environment. The Swiss Franc hedge is for now effectively gone (anyone at Permanent thinking of rerouting the SF portion into a true haven currency?) and under that scenario, I'd expect Gold (as against the dollar) to drop, and US stocks to drop (a lot), with only the UST portion of the portfolio benefitting. Yeah, it's still better than any 100% stock fund, but maybe not as good as a simple stock/bond balanced fund with a large bond component.
Well, even this fund can isn't insulated from a day like today when gold and oil take hits. The YTD performance was just reduced to 3.97%, which however is still well above the S&P YTD of -3.3%.
Yes, but the size of the hit they took today was a little scary relative to other balanced funds. With the recent spike in oil I suspect traders are dumping gold for a more lucrative commodity like oil. I'll need to check the prospectus to see if PRPFX invests in oil commodities.
The simple answer is that the DOW is up 4.97% YTD as of the close today, the S&P is up .004% YTD as of the close today, and the fund you are criticizing, PRPFX, is up 6.96% YTD as of the close today and there should be a dividend payable before year end.
I have posted on PRPFX several times and reiterate what I have often said. You buy this and forget it. It is one of the most boring funds available, and that should be considered a good thing.
Don't know about you folks, but roller coasters make me sick, and I don't wish to spend 3 hours a day tracking and trading. Right now, my portfolio consists of 5 funds, 20% each.
YACKX....large cap blend.
Haven't made a move except to rebalance in about 8 years, and I'm up about 95% during that time.
INVEST. Don't trade.