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These days we rebalance when the opportunities present themselves. It is more than quarterly as we have done in the past. For example: 1. Precious metals and mining stocks lost 5% on Monday, Dec 29, 2025. Picked up few shares of SLVR and GDX to increase the alternative bucket. Congrat to @Old_Joe who made similar move. 2. Sold some VOO and bought EM mid-cap value funds. Goal is to shift US equity more to oversea that have more attractive valuation. 3. Sold some PRWCX and bought international value funds. Same reason as #2. 4. Increase oversea bond allocation using DODLX and NRDCX as $38 trillion national debt and $950 billion annual interest worry us. Also the dollar lost ~10% versus other major currencies in 2025. Will the deficit improved in 2026? Will trim US bonds to half when signs of the FED losing their independence. 5. Maintaining 5-10% in cash and cash equivalent as we approach retirement.
As i mentioned previously, our annual gain is modest with our globally diversified and conservative portfolio, and that is good enough for us. Risk mitigation remains our main goal, especially in this chaotic year.
Like @hank bucket approach and the naming nomenclature.
- "These days we rebalance when the opportunities present themselves."
Agree with ya there. Lock-in gains - especially the nice ones.
- "Picked up few shares of SLVR and GDX to increase the alternative bucket."
I won't touch precious metals with a 10-foot pole. But do own a few investment grade Morgans. Also have some limited exposure to the precious metals through more broadly diversified funds.
Ditto @Old_Joe / Just remember: "It ain't over 'til the fat-lady sings."
- "Sold some VOO"
Generally speaking I don't invest in S&P index funds or similar.
- "Bought some EM mid-cap value funds."
Sounds like a smart move. However, I've somewhat backed off on the midcaps. Did pick up a little BATRA today, an indirect play on real estate and internet sports betting. EM? Prone to streaks of under and overperformance
- "Goal is to shift US equity more to oversea that have more attractive valuation."
A worthy goal. I'd be a little careful as many overseas markets have had a nice run-up.
- "Sold some PRWCX"
It's been a great fund. I owned it many years ago.
- "Bought some international value funds"
I do think there's value in value. About all I look at any more.
- "Increased oversea bond allocation using DODLX and NRDCX"
Agree with having a toe-hold on international currencies & bonds. But use care. Many foreign currencies have had a nice run up.
- "$ 38 trillion national debt and $950 billion annual interest worry us."
Yes. Worries many. Simplest (and most likely) solution is to monetize the debt by allowing the dollar to erode in value. Short term they'll try to reduce interest expense by holding rates down, but likely to backfire long term.
- "Maintaining 5-10% in cash and cash equivalent as we approach retirement."
My direct cash holdings are around 20% of portfolio. Toss in in what's held thru diversified funds and it's closer to 30%.
- "Our annual gain is modest with our globally diversified and conservative portfolio.'
- "Risk mitigation remains our main goal ... "
Agree with both of above.
- Like @hank bucket approach and the naming nomenclature.
It helps me to think more clearly to have a structured portfolio plan. Lots of different concepts and terms can be utilized - with names like: buckets, sleeves, ranges, subsets, targets, limits and nominal positions.
Thanks for the mention @Sven Very nice summary by you.
@hank, Making buckets of ETFs enable one to explore your ideas and themes as part of the strategies. Will watch your progress.
I use the alternative bucket as a low correlation vehicle to equities. Precious metal is fine but they are for good trading purpose by taking advantage of the high volatility. Warren Buffet does not invest in gold since they fail to meet his criteria - no dividend and intrinsic value. Thus, investors should maintain a small allocation, 5-10%.
When i see more long term treasuries re-open at auction, i have to wonder why when Bessent said the Treasury dept wants to reduce their long bond holding. Something does not jive.
The tread of debasing US dollar has hold for more a year due to heighten debt. For example, Euro-zone countries and China have steady selling treasury. For the near term, US dollar will remain the world reserve currency in the near term. The tariffs are opening opportunities for other major currencies.
@hank, Making buckets of ETFs enable one to explore your ideas and themes as part of the strategies. Will watch your progress.
I use the alternative bucket as a low correlation vehicle to equities. Precious metal is fine but they are for good trading purpose by taking advantage of the high volatility. Warren Buffet does not invest in gold since they fail to meet his criteria - no dividend and intrinsic value. Thus, investors should maintain a small allocation, 5-10%.
When i see more long term treasuries re-open at auction, i have to wonder why when Bessent said the Treasury dept wants to reduce their long bond holding. Something does not jive.
Agree. My only "long-lasting" bucket is the one having 10 CEFs that was largely assembled in the March-April period. Have experimented with a few others - but found it pretty hard in most cases to replicate what a good fund manager does - even when expenses are factored in.
Thanks for the comments @Sven. Best of fortunes with your approach.
Comments
1. Precious metals and mining stocks lost 5% on Monday, Dec 29, 2025. Picked up few shares of SLVR and GDX to increase the alternative bucket. Congrat to @Old_Joe who made similar move.
2. Sold some VOO and bought EM mid-cap value funds. Goal is to shift US equity more to oversea that have more attractive valuation.
3. Sold some PRWCX and bought international value funds. Same reason as #2.
4. Increase oversea bond allocation using DODLX and NRDCX as $38 trillion national debt and $950 billion annual interest worry us. Also the dollar lost ~10% versus other major currencies in 2025. Will the deficit improved in 2026? Will trim US bonds to half when signs of the FED losing their independence.
5. Maintaining 5-10% in cash and cash equivalent as we approach retirement.
As i mentioned previously, our annual gain is modest with our globally diversified and conservative portfolio, and that is good enough for us. Risk mitigation remains our main goal, especially in this chaotic year.
Like @hank bucket approach and the naming nomenclature.
- "These days we rebalance when the opportunities present themselves."
Agree with ya there. Lock-in gains - especially the nice ones.
- "Picked up few shares of SLVR and GDX to increase the alternative bucket."
I won't touch precious metals with a 10-foot pole. But do own a few investment grade Morgans.
Also have some limited exposure to the precious metals through more broadly diversified funds.
- "Congrats to @Old_Joe who made similar move."
Ditto @Old_Joe / Just remember: "It ain't over 'til the fat-lady sings."
- "Sold some VOO"
Generally speaking I don't invest in S&P index funds or similar.
- "Bought some EM mid-cap value funds."
Sounds like a smart move. However, I've somewhat backed off on the midcaps. Did pick up a little BATRA today, an indirect play on real estate and internet sports betting. EM? Prone to streaks of under and overperformance
- "Goal is to shift US equity more to oversea that have more attractive valuation."
A worthy goal. I'd be a little careful as many overseas markets have had a nice run-up.
- "Sold some PRWCX"
It's been a great fund. I owned it many years ago.
- "Bought some international value funds"
I do think there's value in value. About all I look at any more.
- "Increased oversea bond allocation using DODLX and NRDCX"
Agree with having a toe-hold on international currencies & bonds. But use care. Many foreign currencies have had a nice run up.
- "$ 38 trillion national debt and $950 billion annual interest worry us."
Yes. Worries many. Simplest (and most likely) solution is to monetize the debt by allowing the dollar to erode in value. Short term they'll try to reduce interest expense by holding rates down, but likely to backfire long term.
- "Maintaining 5-10% in cash and cash equivalent as we approach retirement."
My direct cash holdings are around 20% of portfolio. Toss in in what's held thru diversified funds and it's closer to 30%.
- "Our annual gain is modest with our globally diversified and conservative portfolio.'
- "Risk mitigation remains our main goal ... "
Agree with both of above.
- Like @hank bucket approach and the naming nomenclature.
It helps me to think more clearly to have a structured portfolio plan. Lots of different concepts and terms can be utilized - with names like: buckets, sleeves, ranges, subsets, targets, limits and nominal positions.
Thanks for the mention @Sven Very nice summary by you.
I use the alternative bucket as a low correlation vehicle to equities. Precious metal is fine but they are for good trading purpose by taking advantage of the high volatility. Warren Buffet does not invest in gold since they fail to meet his criteria - no dividend and intrinsic value. Thus, investors should maintain a small allocation, 5-10%.
When i see more long term treasuries re-open at auction, i have to wonder why when Bessent said the Treasury dept wants to reduce their long bond holding. Something does not jive.
The tread of debasing US dollar has hold for more a year due to heighten debt. For example, Euro-zone countries and China have steady selling treasury. For the near term, US dollar will remain the world reserve currency in the near term. The tariffs are opening opportunities for other major currencies.
Thanks for the comments @Sven. Best of fortunes with your approach.