As far as the portfolio being set up to deal with very high inflation or even runnaway inflation, it definately is not. Runnaway US inflation will devastate stocks that derive most of their revenues in US dollars and will obviously crush the 50% that is dollar-denominated debt. In a high inflation ...

Short-term treasuries are almost like cash anyway. I realize that the fed expands the money supply by purchasing treasuries and doesn't just drop a stack of bills on doorsteps, but that is still inflation. You can't go to the grocery store and buy food with treasuries nor can you buy gold with it. ...

I think most people really underestimate the amount of inflation we've suffered at the hands of the Fed this past decade. We often confuse inflation with price increases. Inflation is really the expansion of the money supply and we all know it's been expanded greatly in the past ten years, probably ...

Sure, but a market crash happens due to inflation, deflation, or recession, and the PP already has other assets to protect against those problems. However, in the context of the PP, the international stocks water down the stock allocation's tie to domestic prosperity.  Which tilts the portfolio tow...

What's universal about a PP with no U.S. equities at all?  Why TLT instead of long-term global treasuries? It's not universal. VT captures US markets and is a better reflection of global stocks but although the difference is probably minimal. I think stock or currency risk is bigger when you concen...

I'll do a backtest of the portfolio I've been discussing with the cash split between Yen/Francs. This is kind of cherry-picking two currencies that have appreciated 400%+ against the dollar in 40 years though. Maybe I'll throw something else in there but other than the Zimbabwe dollar almost everyth...

A few points: 1. The PP worked fine in Iceland. 2. Stocks aren't necessarily "rocked" in high inflation. 3. If runaway inflation is affecting the dollar, it may very well be affecting a lot or all other currencies too. 4. I don't feel like searching for something better than the HBPP. Why...

So we're all gathering here with the intent of improving our investments. In no way should we accept the HBPP as some sort of magical formula for success in any investing environment. HB was not a magician. He was a brilliant investor and philosopher. I've read most of his books and consider the HBP...

The permanent portfolio has proved itself completely inadequate to deal with hyperinflation. Stocks will be crushed in both an inflationary collapse and a deflationary one. That leaves gold facing off against the home currency at 50% disadvantage. To be sure, the pp holds up well during deflation fo...