I believe that any allocation to international stocks must be accompanied by a similar allocation to international bonds as well as cash (although Australia does not have a currency basket ETF).  This is so because every economy follows its own economic cycle.  Otherwise, the protection capabilities...

For what it's worth, this is my Ozzie Permanent Portfolio implementation: 25% Gold bars from Pert Mint 25% Vanguard Australia: Fixed Interest Australian Fund (Treasury and govt. bonds) 25% Vanguard Australia: International Bond Fund (Treasury and govt. bonds) 12.5% Vanguard Australia: Global Equity...

... in my previous post, I forgot to say that I decided not to go with the recommended approach of buying directly 15-year bonds because of the added hassle of having to transact them on an annual basis (when duration is 14 years) and because it is the government that arbitrarily sets the purchase p...

For what it's worth, this is my Ozzie Permanent Portfolio implementation: 25% Gold bars from Pert Mint 25% Vanguard Australia: Fixed Interest Australian Fund (Treasury and govt. bonds) 25% Vanguard Australia: International Bond Fund (Treasury and govt. bonds) 12.5% Vanguard Australia: Global Equity ...

For quite some time, I've been looking at the implementation of PP from the perspective of a non-US resident.  I'm interested in the topic because I currently live in Australia. Although some of the comments in this thread and other threads suggest that each component of the PP may be in different j...

Here is Bridgeway's asset allocation, including percentages and suggested funds:

http://seekingalpha.com/article/878251- ... -portfolio

The recently launched bond ETFs in Australia are quite illiquid at the moment, which means that they have very wide buy/sell spread.  They'll be an ideal product in times to come, but not now. Another recent development is the launch of the Vanguard Inflation Linked Govt Bond fund.  Although the &qu...

I'm seeing vastly different figures for an Australian PP over 2011 ? ? ? Clive The Pert Mint performance you quote relate to the spot price.  This is technically correct - however, I used bullion price, which is what I hold and that gives me an accurate representation of portfolio performance (for ...

Australia PP: ASX : -15% Cash: +5.63% Bonds: +11.63% Gold: +9.3 25% in each of the above would yield: +2.9% Are those Australian long term bonds? What funds do you use to get the above? The bond component represents the performance of a wholesale Vanguard Australia fund, which mixes 5 to 10 year bo...

We will put in more information dealing with the international applications as well. Many overseas have had great luck with the portfolio in their home countries. I would welcome a chapter on non-US investors.  In particular, when the non-US investor has a limited choice of investing products, whic...

Australia PP:

ASX : -15%
Cash: +5.63%
Bonds: +11.63%
Gold: +9.3

25% in each of the above would yield: +2.9%

Just open a US-based brokerage account and you can buy US treasuries directly. See the post on how to buy them at Fidelity.  A workmate (also Australian citizen) has a Fidelity account.  He's mentioned that he has had terrible problems in withdrawing funds via wire or any method other than issuing ...

I was reviewing the excellent bond FAQ here and I can definitely say that an Australian treasury 10-year bond did not behave like TLT did during the late 2008 (Lehman collapse).  How did they behave? Whereas TLT went up as a result of safe haven buying during Sep 08 to Mar 09, 5-year bonds were alm...

Thank you Adam and Ad Or. I'm an Australian citizen.  I guess the real challenge is the lack of long-term maturities, whether treasury or AAA corporate.  The longest is 10 years.  The real problem is that this time horizon does not really protect against serious deflation - they do not behave like T...

Given my current Australian residence, I cannot buy TLT or US Treasury bonds directly.  I can't find a similar option - my options are: 1) Buy 10-year Australian Treasuries (AAA) directly 2) Buy a mutual fund of Australian Treasury (50%) plus Australian Federal and State Government bonds (mix of AAA...

Opening a safe deposit box is quite easy in Australia so I believe that retrieving physical gold from the Perth Mint and leaving it in a box somewhere in a Perth safe deposit box is the way to go.  If you really think about it, gold is the only portion of the PP that can be held physically in the lo...

Marc Faber has been advocating the purchase of land as a hedge against inflation for years.  His allocation is consistent with his outlook on the global economy.

If 35% stocks, 65% inflation bond type allocations can provide a more constant return over multiple time periods - then if you use a PP as the 'inflation bond' holding :- It would be interesting to calculate the standard deviation of both allocations - that would give an indication if the PP's lowe...

There is no question that the PP has historically under-performed some allocations.  On the other hand, there is also no question that the PP's Sharpe ratio is by far the best of any traditional asset allocation techniques or traditional portfolios (with the exception of 100% cash allocation!).  The...

Interesting article that is somewhat related to the issue of maximum drawdown - it possibly makes the case for a PP more compelling:

http://macrobusiness.com.au/2011/07/are ... long-term/

I've read a lot of rubbish on the net regarding the concept of 'max drawdown.'  It's an excellent concept, easy to understand, but sometimes hard to calculate.  The best way to determine the max drawdown is by multiplying the standard deviation of a security by 3.  There is a statistical reason for ...

For those of you who remember the "Gummy stuff" work (I'm not sure if it is still available here http://www.financialwebring.org/gummy-stuff/), Gummy developed a great spreadsheet to test the 200-MA concept with any security, whether individual stock, ETF, fund, etc.  I ran several scenari...

After all, the PP is a clear demonstration of low risk = low reward! This may be more a matter of perception, but to me 9%+ returns are not "low reward". Simba's spreadsheet shows a CAGR of 8.05% for the period 1985-2010.  Although I'd agree that such a result is not bad at all, it is in ...

Thanks for the responses.  I guess the overall conclusion is that, in bull markets, the PP underperforms but in bear markets it performs better than most asset allocations.  The question is which of the two, either secular bull market (like 1982 to 2000) or secular bear market (2001-2011), is the ou...

Hi all Please let me start by saying that I'm a PP converted and fully invested in the orthodox variation of the PP per HB recommendation.  However, I constantly keep on reading and analyzing various asset allocations and long-term results. As most of you are aware, the Simba spreadhseet available f...