Global Permanet Portfolio

General Discussion on the Permanent Portfolio Strategy

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lordmetroid
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Global Permanet Portfolio

Post by lordmetroid » Sun Jan 24, 2016 10:26 pm

So, I realized, not living in the USA and Sweden lacking in investment products to make a completely Swedish Permanent Portfolio. The best thing I could probably do is to diversify my Permanent Portfolio globally. After all, we are living in a global economy today anyway.

Anyone who has any recommendations of ETFs that are good for Bills and Bonds of different governments or areas around the globe?
I am also curious, if I ought to diversify into more commodities such as Copper, Silver, Palladium and Oil or if I should simply leave it with Gold?
koekebakker
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Re: Global Permanet Portfolio

Post by koekebakker » Mon Jan 25, 2016 1:00 am

Hi Lord,

Ishares has a global AA+ bond etf, see also Dutchtraffics Global PP thread. AUM are tiny though.

Instead of holding cash and LT's seperately you could also lump them together by using only intermediate treasuries. That's probably easier to implement.
Historically intermediate treasuries have behaved very similar to a cash/LT split.

No idea why you'd want to hold all those other commodities. Variable Portfolio maybe?
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ochotona
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Re: Global Permanet Portfolio

Post by ochotona » Mon Jan 25, 2016 8:52 am

I would consider silver. Platinum and palladium ETFs have high expense ratios, not as well traded so less liquid, larger spreads. All of the white metals perform more similarly due to their industrial nature. Doug Eberhardt suggests 75% gold, 25% silver. The GLTR ETF hold 2/3 gold, 1/3 white metals.
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technovelist
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Re: Global Permanet Portfolio

Post by technovelist » Mon Jan 25, 2016 10:27 am

Gold is not primarily a commodity. It is primarily money.

The other metals are commodities first and foremost, although silver has a small monetary component to its value.

I don't see any reason for including anything but gold in the gold component of PP.
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lordmetroid
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Re: Global Permanet Portfolio

Post by lordmetroid » Mon Jan 25, 2016 10:42 am

I found no other long term bonds other than US bonds available at my broker of choice so, I simply bought TLT in the end, for equities I have used 1/3 of my equity part of the portfolio so far to buy the Swedish Index, don't know if I ought to diversify into Asia and US for the other parts or I simply should buy 25% swedish index.
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lordmetroid
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Re: Global Permanet Portfolio

Post by lordmetroid » Mon Jan 25, 2016 5:44 pm

Alright, my portfolio is designed!

25% Equities:
  • 1/4 Europe Index
  • 1/4 USA Index
  • 1/4 Asia Index
  • 1/4 Japan Index
25% Gold:
  • IAU
25% Bonds:
  • TLT
25% Cash
  • Swedish Money Market mutual fund
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AdamA
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Re: Global Permanet Portfolio

Post by AdamA » Mon Jan 25, 2016 5:50 pm

lordmetroid wrote: Alright, my portfolio is designed!

25% Equities:
  • 1/4 Europe Index
  • 1/4 USA Index
  • 1/4 Asia Index
  • 1/4 Japan Index
25% Gold:
  • IAU
25% Bonds:
  • TLT
25% Cash
  • Swedish Money Market mutual fund
You may have mentioned this elsewhere already, but why not just use VT for your stock holding?
"All men's miseries derive from not being able to sit in a quiet room alone."

Pascal
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lordmetroid
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Re: Global Permanet Portfolio

Post by lordmetroid » Mon Jan 25, 2016 5:56 pm

AdamA wrote: You may have mentioned this elsewhere already, but why not just use VT for your stock holding?
I want to rebalance the equities myself so I am buying the region which is on sale at that buying moment.
I also do not want the composition to be skewed dependent on the current market-size.
Last edited by lordmetroid on Mon Jan 25, 2016 6:00 pm, edited 1 time in total.
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lordmetroid
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Re: Global Permanet Portfolio

Post by lordmetroid » Tue Jan 26, 2016 6:10 pm

Perhaps it is better to simply get a passive global index fund. That way it can re-balance itself each year if one region or the other grows in a higher rate than another.
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Re: Global Permanet Portfolio

Post by koekebakker » Tue Jan 26, 2016 11:18 pm

No one really knows if it will be better or not. It will be a lot simpler.
Given your tendency to tinker I would choose one global stock fund or etf and be done with it.

Even if a 'real' PP isn't possible, a combination of MSCI World, Swedish bonds and some gold makes a fine portfolio. Only buy stuff that you can easily hold on too for 30+ years: global stocks, domestic bonds, a bit of gold. Keep it simple, set it and forget it. Go fishing.

When you keep feeling the strong urge to tinker set aside something like 5% of your portfolio as play money and do whatever you like. Buy oil, cattle or chase triple momentum absolute value returns...
Kike Moreno
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Re: Global Permanet Portfolio

Post by Kike Moreno » Wed Jan 27, 2016 3:55 am

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

Post by LazyInvestor » Wed Jan 27, 2016 5:11 am

As a NRA, there is a huge difference between holding US Treasury Bonds directly vs. thru an ETF. In the first case there is no tax on the interest and it's estate tax exempt. Be careful with ETFs. Hold total world market on LSE, not on US exchanges as it's also significant estate tax difference.
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