my global PP plan, your opinion please

General Discussion on the Permanent Portfolio Strategy

Moderator: Global Moderator

Post Reply
ibmkahm
Junior Member
Junior Member
Posts: 1
Joined: Thu Jul 11, 2019 3:14 am

my global PP plan, your opinion please

Post by ibmkahm » Thu Jul 11, 2019 3:23 am

Hi,
I'm from germany and plan to set up a PP with the follwoing etfs, but would like to have your opinion.

25% Stocks: Vanguard FTSE All-World (IE00B3RBWM25)
25% Gold: Xetra Gold ETC (DE000A0S9GB0)
50% global Bonds with average 10 year duration: iShares Global AAA-AA Government Bond (IE00B87G8S03)

In the bond part i would like to have global exposure, therefore the 25% long term and 25% short term bonds are mixed together for a 10 years average duration bond.

what do you think of it?
User avatar
Kbg
Executive Member
Executive Member
Posts: 1319
Joined: Fri May 23, 2014 4:18 pm

Re: my global PP plan, your opinion please

Post by Kbg » Thu Jul 11, 2019 6:54 pm

You've implemented a near classic PP using "global" as your country.

When you look under the hood you will find you have a heavy weighting to the US (40-60% ish) and you will be susceptible to country currency risk vs. global currencies. Neither of these are necessarily bad, just as long as you are aware of them.
User avatar
europeanwizard
Full Member
Full Member
Posts: 98
Joined: Sun Jun 04, 2017 4:06 am
Location: The Netherlands, Europe

Re: my global PP plan, your opinion please

Post by europeanwizard » Fri Jul 12, 2019 1:10 am

I think it's a pretty good portfolio, I've got something almost similar myself but I haven't gone global on the bonds part yet. Meb Faber has said a few short words about the global permanent portfolio in past episodes, something to the tune of very low volatility, hasn't done better than the US PP, interesting nevertheless.

That bond fund of yours, that seems to be distributing. Is that what you want?
User avatar
Smith1776
Executive Member
Executive Member
Posts: 220
Joined: Fri Apr 21, 2017 6:01 pm

Re: my global PP plan, your opinion please

Post by Smith1776 » Fri Jul 12, 2019 12:09 pm

OP, I implemented an international PP for Canadians a while back in this thread:

viewtopic.php?f=1&t=9613&p=169411#p169411

Granted, it's for Canadians, but you may find the general idea of using a simple balanced fund to cover the stock/bond/cash portion of the portfolio with one security to be useful.
V = E * (8.5 + 2G)
Post Reply