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Home>UPDATE: Jittery? Sleep well at night with this 'all weather' approach to investing

UPDATE: Jittery? Sleep well at night with this 'all weather' approach to investing

UPDATE: Jittery? Sleep well at night with this 'all weather' approach to investing

09/19/2017

By Shawn Langlois, MarketWatch

'As long as I'm invested in this portfolio, I won't panic, predict the end of the world, scream, and run for the hills'

Back in 2010, Drew Housman was fresh out of Harvard and earning his first real paycheck when he decided to jump head first into the market. He was young and felt like a 100% equity portfolio was the right call, considering his timeline.

It went well for a while, but then the summer of 2011 happened. The market tanked and took his savings down with it. Like so many novice investors before -- and after -- him, he couldn't take it and liquidated what was left of his nest egg.

"I immediately forgot all of my training," he wrote in a post for the Simple Dollar blog (https://www.thesimpledollar.com/why-i-chose-this-controversial-all-weather-portfolio-for-my-life-savings/). "I was like someone who played a lot of the videogame 'Call of Duty,' and then naively thought I'd be prepared if a real war broke out and I was called into action."

You're not alone, Drew.

Of course, his sale basically nailed the bottom of the dip, and he sat idly by over the next six years watching the market churn out historic returns. Now Housman says he's ready to make his return, though, still feeling the sting from his first attempt, he's taking a different approach he hopes will help him sleep at night.

He recently stumbled upon "The Golden Butterly," courtesy of "Tyler," the anonymous mechanical engineer behind the Portfolio Charts website (https://portfoliocharts.com/2016/04/18/the-theory-behind-the-golden-butterfly/). Essentially, the approach is a more aggressive tweak of Harry Browne's Permanent Portfolio -- a simple, risk-averse portfolio laid out decades ago.

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