This is my Permanent Portfolio:-
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5 Year Permanent Portfolio v FTSE All Share |
Background
In a previous post, I took a look at The Permanent Portfolio and concluded that I would create one to complement my income portfolios. Whereas I expect the capital value of my income portfolios to be volatile I would like to have part of my investments to be capital protected with the prospect of inflation+ growth. The Permanent Portfolio should meet that goal – of course, the proof of the pudding …
There are four equally split asset classes in the Permanent Portfolio in the original Harry Browne proposal – gold, equities, long-term government bonds, and cash. harry Browne subsequently suggested some variation in assets to the Permanent Portfolio and both the PERM ETF and PRPFX Fund have deviated from Browne´s original asset allocation. I am sure this is the result of significant backtesting but for me, it moves away from the elegant simplicity of the original portfolio – so I´m going for simplicity in my implementation.
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PERM PERMANENT PORTFOLIO ETF |
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PRPFX PERMANENT PORTFOLIO FUND |
SECURITY
GOLD
LONG TERM GILTS
CASH