Baseline

Putting Our Money Where My Mouth Is

If you are to take my concerns about rhyming history seriously, then I should have our money where my mouth is.  In other words, practice what I preach.

Our current portfolio has been put in place over the past four years.  It is a result of considerable research into where we are in the social, financial, debt, and currency cycles.  These positions have all been developed with a five-to-ten-year time horizon:

Stocks:

·         General Stock Market    0%

·         Commodity Producers 20%

Fixed Assets:

·         Bond Market                 0%

·         Direct-Own GICs          20%

Real Estate:

·         Excess Home Equity     15%

·         Apartment REITs            5%

·         Direct-Own Farmland  20%

Commodities:

·         Gold and Silver            10%

Private Business:

·         Debt and Equity             4%

Crypto:

·         General Crypto             0%

·         Bitcoin                          3%

Cash:

·         Savings Account             3%

 

The portfolio’s risk-reward breakdown over the next 10 years:

·         Low          33%       GICs, Gold & Silver, Savings

·         Medium    44%       Real Estate, Private Business

·         High         23%       Commodity Producers, Bitcoin

77% of the portfolio is in a diverse selection of real assets, with only the GIC’s and Savings as exceptions.

Regarding Debt:

·         We have intentionally prioritized and eliminated debt from our finances and do not use it to make or leverage investment

·         That said, good debt – to own a home, a vehicle, finance a productive private business – for a need, not a want remains a good financial decision in my view

Now you know where we stand.  And what we’ve done in relation to what history has presented us.  Between continuing to address the evolving Big Picture, I intend to comment over time on the individual components of our investments and periodically update this baseline for you.

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