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Portfolio

Posted: Tue Jun 14, 2011 8:45 am
by LGrand85
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Re: Dollar vs. Permanent Portfolio

Posted: Tue Jun 14, 2011 8:54 am
by MediumTex
The PP has returned a pretty steady 4% real for many years.  In times of dollar devaluation, this would show up as larger nominal returns, but the 4% real has remained pretty steady through a variety of economic conditions (including extended periods of dollar strength).

Re: Dollar vs. Permanent Portfolio

Posted: Tue Jun 14, 2011 10:35 am
by MediumTex
LGrand85 wrote:
MediumTex wrote: The PP has returned a pretty steady 4% real for many years.  In times of dollar devaluation, this would show up as larger nominal returns, but the 4% real has remained pretty steady through a variety of economic conditions (including extended periods of dollar strength).
where can I find data on that? Just seems to me that as over time the dollar crashes lower, the PP seems to go up over time.
It does, but the PP also goes up when the dollar strengthens.

For an example of the PP doing well when the dollar is strengthening, the most recent example would be 2008.