I am thinking about moving some money around. Right now I own the Vanguard Windsor fund (VWNDX), and have taken a pretty good beating. I realize that this is primarily because of their extensive ownership in financials and healthcare, and although riding it out and dollar cost averaging is an option, I feel as if I will benefit from shifting some of my money around, since in my opinion the outlook on the economy is not too good for the next couple of years at least.
PRPFX has shown to be extremely resiliant, performing well in both bears and bulls, and appears to be a good hedge against down markets and inflation (both of which worry me in the future). VGSTX appears to be a safe, cheap, strong performer which will preserve some of my money.
I am thinking about pulling the money I have and investing about 60-65% into the Vanguard Star fund (VGSTX) and the rest into the Permanent Portfolio fund (PRPFX). I feel as if the economy continues to crumble the gold and precious metals holdings of PRPFX and the bond holdings from both PRPFX and VGSTX will hedge against serious losses, but if the economy turns I will still be able to capitalize on gains with these two portfolios. I am relatively new to investing (still in college), and don't have a ton of money to play around with. I am looking to invest long-term, but also realize that I will need to pull some money out periodically to pay for college loans, car, myabe a house one day, etc. Was wondering if I could get any advice or tips on how you think this new portfolio would work out. Thanks a lot!