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Author: dimpledott Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35367  
Subject: Re: Plan For Mom Date: 6/12/2003 1:55 PM
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One interesting idea would be something called the Permanent Portfolio. While not timing the market, it understands the idea that markets do change. The basic premise is to invest 25% in Treasury Bonds, 25% in Treasury Bills, 25% in leveraged stocks, and 25% in gold. The idea is that no matter which direction the market is trending, one of these investment classes will do well enough to carry the rest of the portfolio.

There's a mutual fund that follows this strategy, although they do vary it a bit. The ticker is PRPFX. It's not a fund for those looking for a tremendous return, but rather is designed for steady growth. It has, however, been known to go up dramatically in certain economic conditions. Most recently it has gone up quite a bit due to the increasing value of gold. It protects itself by rebalancing the portfolio periodically to avoid being overcommitted in any one investment class.

Just a thought. I've not seen much press on this fund, but I put some into it a year ago, and have been pleasantly surprised.
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