Yes, but this is the direct impact of currency deprecation.  What I mean is that in the case of big currencies like the euro, a local high inflation will cause an increase in gold demand from europeans and an additional gold price increase.

You have to consider also that the USD monetary policy and the EUR monetary policy have been, and are, both very similar.  Basically zero-interest.  So if in the future we have a significant inflation in euros, we will probably see a significant inflation in USD also.  And in addition EUR is not a s...

Here you can see the performance of the Euro PP:  http://www.carterapermanente.es/evoluci ... ermanente/

It looks like it's working pretty well.

Maybe you could use the more global MSCI ACWI (which also includes emerging markets) instead of MSCI World (only developed markets).

In my opinion the closest one can get to HBPP from the eurozone is: - 25% eurozone stock index like MSCI EMU (--> whole market in your currency) - 25% German 30yr bund (--> the safest long term bond in your currency) - 25% high quality short term bonds - 25% gold The main drawback with respect to th...

There is something in between world stocks and Amsterdam stocks which is eurozone stocks with the MSCI EMU index.  You could use SPDR MSCI EMU UCITS ETF (IE00B910VR50). With regard to the German long bonds, another interesting ETF is Deka Deutsche Boerse EUROGOV Germany 10+ UCITS ETF (DE000ETFL219)....

Really nice graphs Tyler, thanks a lot! Since you ask for ideas/requests, we would like to see similar plots for the Euro PP described here:  http://www.carterapermanente.es/evolucion-cartera-permanente/ Its composition is: 25% MSCI EMU 25% Germany Gov 30y 25% gold 25% Germany Gov 1y The timeframe w...

There is a interesting post from the same Spanish blog linked by chalimac which analyses the performance of the different country bonds in the last years and according to the results the bonds that offer the best results are those from Germany, the Netherlands and Finland.  And E20Y has about a 30% ...

Archive.org is our friend:

https://web.archive.org/web/20120729164 ... eland.html

How would a transition from a Euro-denominated German bond to a Deutsche Mark-denominated German bond work, based on history?  I know Greece will just repudiate all Euro-denominated debt after exiting, but I can't see Germany doing that. In addition of this transition, in the event of an Euro break...

Have you applied the concept to the PP to derive a variation of it?  Which is the proposal?  % of each asset, fixed or variable percentages?, etc.

Could you please explain a bit more?  What would be a "risk-normalized" PP ?

Regarding the performance of a EU-PP portfolio, I have actually did some testing (which may be replicated in the future... or not!) from 1 July 2007 onwards. There is a Spanish blog devoted to the euro permanent portfolio that has an interesting page with the evolution since 1999: http://www.carter...

I would be very hesitant to recommend a German put his stock exposure all into German stocks or bonds, or a Japanese into Japan, etc.  Those are way too concentrated of positions, IMO.    I can see the cash being put into Euros for a Euro person though.  I'm not sure Harry Browne would have agreed ...

Pfanni wrote: I cannot seem to find valid arguments for owning EUR bonds.

For me the point is to avoid the currency risk.  What if the EUR/USD exchange rate raises again to 1.59?  Or what if, as you are worrying, the euro collapses and your "New Mark" appreciates a lot with respect to the USD?

Hi Mouro. The problem with this ETF is that it holds bonds from France and Italy for example which are not top quality.  For a PP in euros I think that it is better to stay with German bonds (or alternatively Finland or the Netherlands, whose risk premium is very low).  You need the asset with the t...

Everyone but the americans will be exposed to the USD currency risk because gold is valued on the global market in the world currency of USD. I don't agree with that.  It does not matter in which currency the gold price is expressed.  Everyone could be talking about gold prices in EUR and nothing w...

Other advantages may outweigh that disadvantage.  Investors should be aware of it, though. Yes, I agree.  You are lucky in the US to have this strong link between your currency inflation and the gold price.  Being in Europe I prefer a pure EUR PP and assuming a smaller protection for inflation rath...

I said "more canonical" because AFAIK Browne recommended having the portfolio in your own currency if you were in a large enough currency area (or use USD if you were in a small country) to avoid currency exchange risks. With regard to the inflation protection, if there is both inflation i...

Have you considered the currency risk from including USD in your portfolio?  It could go up with respect to the euro, but also down... I really prefer a more canonical EUR permanent portfolio composed by: 25% in an ETF following MSCI EMU to have the maximum diversification without leaving the euro 2...