John Budden’s Dog Bone Portfolio is designed to preserve wealth and maintain one’s purchasing power through Kondratieff Winter.
Our goal is to weather, not only countervailing inflationary and deflationary forces, but also to survive competitive devaluations.
Obviously, portfolio weightings are dependent on one’s personal risk tolerance and investment objectives. In any event, investors should at least have a sleeve of precious metals and precious metals shares in their portfolios as insurance against the inevitable devaluation of fiat currencies.
Securities should be selected with advice from a qualified registered investment advisor.
5% ~ Cash: Canadian and U.S. Dollars
0% ~ Bonds: Jim Grant, publisher and editor of Grant’s Interest Rate Observer, describes government bonds as “return-free risk.”
25% ~ Canadian Stocks (all listed on the TSX)
Canadian Chartered Banks: Toronto Dominion Bank (TD)
Railways: Canadian National Railway (CNR)
Oil and Gas: Imperial Oil (IMO)
Pipelines: Inter Pipeline (IPL)
Communications: BCE Inc. (BCE)
Intelligent Information: Thomson Reuters (TRI)
Merchandiser: Loblaw Companies (L)
Agriculture: Agrium (AGU)
Investment Management: Sprott Inc. (SII)
25% ~ U.S. Stocks
Health care: Johnson & Johnson (JNJ) (listed on the NYSE) Technology: Apple (AAPL), Google (GOOG), Tesla Motors (TSLA), Netflix (NFLX) (all listed on NASDAQ)
5% ~ Global
Food and Water: Nestlé (NSRGY) (listed OTC)
40% ~ Precious Metals (cash alternative, inflation, deflation, and devaluation insurance)
(25%) Royal Canadian Mint Gold Reserves: Exchange Traded Receipts (listed on TSX – MNT and MNT.U), Sprott Physical Gold Trust (listed on NYSE Acra – PHYS and TSX -PHY.U)
(5%) Royal Canadian Mint Silver Reserves: Exchange Traded Receipts (listed on TSX – MNS and MNS.U), Sprott Physical Silver Trust (listed on NYSE Acra – PSLV and TSX – PHS.U)
(5%) Sprott Gold Miners ETF (listed on NYSE Acra – SGDM)
(5%) Sprott Gold Miners Junior ETF (listed on the NYSE – SGDJ)
There is no trick to being a humorist when you have the whole government working for you
The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics