Permanent Portfolio 2010 Results

[craigr]

Well the end is near and the 4x25 portfolio was in the +15-16% range for the year. Numbers will fluctuate slightly as end of year dividends, etc. roll into the funds. But it's close enough for government work. Here is my write-up:

https://web.archive.org/web/20160324133 ... 0-results/

Happy New Year!

[moda0306]

One more year, and we'll officially have 40 years of proof that the PP is as amazing as we all hope/know/think it is.

Congrats everyone.

[bigamish]

Just my luck that I only was able to complete the establishment of my PP last week. Here's hoping that 2011 is just as good!

[Gumby]

One more year, and we'll officially have 40 years of proof that the PP is as amazing as we all hope/know/think it is.

Congrats everyone.

Congrats to everyone. Harry Browne would be proud of the PP living on here in cyberspace.

btw, moda0306, we already have a 40 year proof. Harry Browne's chart of the PP shows results from 1970.

Here's to 40 years!

[Lone Wolf]

Another great year.  Thanks for the update, Craig, and congratulations all!

[gonetowindsurf]

Craigr - you mentioned rebalancing gold in your blog posting. Can you please elaborate? My guess would be that those who purchased as late as 09 would need to rebalance, and those that have been in for 5 years would have rebalanced at least twice now - and would that money go into cash - because none of the other assets reached the lower band?
thanks
mike

[MediumTex]

Craigr - you mentioned rebalancing gold in your blog posting. Can you please elaborate? My guess would be that those who purchased as late as 09 would need to rebalance, and those that have been in for 5 years would have rebalanced at least twice now - and would that money go into cash - because none of the other assets reached the lower band?
thanks
mike

When one asset hits a rebalancing point, you rebalance the entire portfolio.

[craigr]

Craigr - you mentioned rebalancing gold in your blog posting. Can you please elaborate? My guess would be that those who purchased as late as 09 would need to rebalance, and those that have been in for 5 years would have rebalanced at least twice now - and would that money go into cash - because none of the other assets reached the lower band?
thanks
mike

Unfortunately rebalancing is going to also be portfolio dependent varying on tax situations, etc. But I mention gold as a friendly nudge that people should rebalance it if it is too high. Of all the assets, gold has the most emotional attachment for many. They either hate it or they are getting panicked about the news and won't sell it.

What I am suggesting is that if you have hit the upper band, you sell it down to 25% and use the proceeds to buy up your laggards whichever they may be in your portfolio. It's going to be time dependent. For some, the stocks may still be lagging. For others it may be the LT bonds. For others still the cash.

As Tex said, you can rebalance the entire thing, but if you are taxable you may not want to do this outright. You could instead just take the gold profits and buy up the biggest loser, second loser, etc. until depleted and limit sales in assets that are in between. There isn't necessarily a one size fits all solution. You need to evaluate your own position and make a decision.

But I mention gold because it has gone up a lot for most people following the portfolio and I suspect many are at, or very near, the upper band. They should rebalance if needed.