Tagged: permanent portfolio

Permanent Portfolio 2013 Results

In 2013 the Permanent Portfolio returned -2.4% for the year according to Morningstar’s data. Here is the breakdown of the popular asset classes according to Morningstar. They are rounded to the nearest tenth and may not reflect all dividends yet. They are close enough for government work: S&P 500 +29.0% Total Stock Market Index +30.0% EAFE International Index +18.8% Emerging Market Index -1.8% Commodities Index -8.2% Real Estate Investment Trust Index -2.1% Treasury Inflation Protected (TIPS) Bonds -7.4% Corporate Bonds -2.2% International Bonds -4.5% Total Bond Market -1.5% Now we’ll...

Permanent Portfolio Backtesting with Daily Data

Over on the forum, user Peak2Trough put up a website that uses daily market data for the Permanent Portfolio going back several decades through today: Peak2Trough Permanent Portfolio Backtesting Tool His tool allows for a number of configurable allocation and rebalancing options and will show a chart and table of the results. Since his data uses daily results, it can show a more granular view of maximum drawdowns than what is typically done for annual comparisons. Standard backtesting warning: The...

Mebane Faber Compares Eight Portfolios

A recent blog post by Mebane Faber compares eight different asset allocation strategies. In his comparison, the Permanent Portfolio did not have the highest returns (it likely never will), but it had by far the lowest drawdown/volatility of them all (-12.7% compared to -30% or worse). So the Permanent Portfolio gave the smoothest ride to get those returns. As we’ve covered before, I feel a portfolio with low volatility is very important for controlling investor emotions and ultimately achieving higher returns. A lot...