I started investing in the PP in mid-2011.  My gains are now equal to those I saw in August, 2012.  In other words, I haven't made any money in the PP in three years. The caveat is that I've been regularly and aggressively contributing to the PP.  So my early gains in 2011/2012 were small as a perc...

Low volatility portfolio usually comes accompanied with higher leverage. Is it a good idea to use leverage on PP given its low volatility?

MediumTex wrote: No.

Comparing gold to mining stocks is like comparing a golden egg to a goose.

I understand the temptation, but it doesn't work the way you are imagining.

May I ask why not?

I am wondering if this is a good idea. Gold does not pay an income. In fact, it comes with storage cost. However, gold mining stocks pay dividends and they tend to correlate with gold. Is it a good idea to replace gold miners with gold? Can the experts here share their opinions? Negative views are m...

https://web.archive.org/web/20160324133 ... l-returns/

Look at the year 1994. What happened? Shouldn't the components move in different directions for diversification to work? And how can cash have negative returns?

Permanent Portfolio has performed admirably well in the past few decades. I cannot put my finger exactly to why it works so well. One way to understand would be to ask under what circumstances would Permanent Portfolio do poorly? Is it a crazy notion to imagine that the 4 components - cash, gold, bo...

Permanent Portfolio provides good returns with low volatility. What characteristics about PP that makes it outperform despite the low volatility?

Well, if there is a severe currency devaluation, a PP with 25% gold would do better than just about any other lazy portfolio. Look at Iceland in 2008 when their currency was devalued about 50%. But I think you are really talking about protecting your assets, not just in your own currency, but relat...

Permanent portfolio looks like it is well-diversified but the 3 components - cash, bonds and stocks are denominated in the same currency if the PP is concentrated in the same country. There is little protection if there is a severe currency devaluation. I wonder if it would be a good idea to have a ...

Given that real estate is a popular asset class which provides income and growth, I am surprised it is absent from the Permanent Portfolio. Will it be a good idea to have REITs in the permanent portfolio? Why is this so?

I just got to hear about the permanent portfolio today and am very excited about it. This is my maiden post on this forum.

May I ask which country has the best historical permanent performance portfolio? A 10-year track record would be sufficient.

Thank you.