Variation of Permanent Portfolio

[Odysseusa]

Original Permanent Portfolio
SHY
TLT
GLD
VTI

Variation of Permanent Portfolio

40% Bond

SHY (Barclays 1-3 Year Treasury Bond)
PCY (PowerShares Emerging Markets Bond)

TLT (iShares Barclays 20 Year Treasury)
IEF (iShares Lehman 7-10 Year Treasury) or LQD

20% Gold

GLD (SPDR Gold Trust)
GDX (Market Vectors Gold Miners ETF)

40% Stock

VTI
VEU

[AdamA]

Original Permanent Portfolio
SHY
TLT
GLD
VTI

Variation of Permanent Portfolio

40% Bond

SHY (Barclays 1-3 Year Treasury Bond)
PCY (PowerShares Emerging Markets Bond)

TLT (iShares Barclays 20 Year Treasury)
IEF (iShares Lehman 7-10 Year Treasury) or LQD

20% Gold

GLD (SPDR Gold Trust)
GDX (Market Vectors Gold Miners ETF)

40% Stock

VTI
VEU

Why?

[Odysseusa]

Just for intellectual stimulation, which is priceless.

[KevinW]

Could you maybe explain the thesis behind this?  Monkeys at typewriters could invent random allocations...I'm sure you arrived at this after some deliberate thought, but if you'd share what it was, it'd help move the discussion forward.

When I squint, this allocation looks an awful lot like a Boglehead retirement allocation e.g. the contents of Target Retirement Income. 40% stock, 20% inflation protection, 40% nominal bonds. Except Bogleheads use TIPS instead of gold and Total Bond Market instead of your slice-and-dice.

[shoestring]

Is the point of this that this is in fact the PP with the cash diminished and hiding inside the bond portion?-

[Odysseusa]

Thanks, all. I am novice and I don't know what I am doing yet. That's why I post this thread for discussion.

[Gosso]

Thanks, all. I am novice and I don't know what I am doing yet. That's why I post this thread for discussion.

I highly recommend you read through the EPIC Bogleheads thread on the Permanent Portfolio.  I found it very informative when I first began learning about the PP.  It allowed many people to voice their negative views or concerns towards the portfolio, which were then nicely defended by Craigr and MediumTex.  It also had virtually every tweek debated.  If it weren't for that thread I wouldn't have chosen the PP.  It is a bit "lengthy" at 72 pages, but worth it -- after all were talking about were to put your life savings or at least "money you cannot afford to lose".

Craigr or MediumTex, have you thought about posting a "sticky thread" with a link to that Bogleheads conversation?  Maybe call it "advanced discussions", since it might be too much information for some people.

[MediumTex]

Thanks, all. I am novice and I don't know what I am doing yet. That's why I post this thread for discussion.

I highly recommend you read through the EPIC Bogleheads thread on the Permanent Portfolio.  I found it very informative when I first began learning about the PP.  It allowed many people to voice their negative views or concerns towards the portfolio, which were then nicely defended by Craigr and MediumTex.  It also had virtually every tweek debated.  If it weren't for that thread I wouldn't have chosen the PP.  It is a bit "lengthy" at 72 pages, but worth it -- after all were talking about were to put your life savings or at least "money you cannot afford to lose".

Craigr or MediumTex, have you thought about posting a "sticky thread" with a link to that Bogleheads conversation?  Maybe call it "advanced discussions", since it might be too much information for some people.

That's a good idea.

That BH thread was really something.  It was a lot of fun participating in that discussion and I think it was really helpful to a lot of people (myself included).

[Odysseusa]

Once again, thank you.

[Lone Wolf]

I highly recommend you read through the EPIC Bogleheads thread on the Permanent Portfolio.  I found it very informative when I first began learning about the PP.  It allowed many people to voice their negative views or concerns towards the portfolio, which were then nicely defended by Craigr and MediumTex. 

That really was a great thread.  It will likely take you several days to get through the entire thing but it's time well spent IMO.