Should I complement my European Permanent Portfolio with a US or Global version?
Posted: Thu Apr 17, 2025 11:32 am
Hi everyone,
I'm currently based in Europe and have been running a Permanent Portfolio (25% stocks, 25% long-term bonds, 25% gold, 25% cash) with a focus on European assets. So far, it's done its job in terms of stability and low volatility.
However, I'm now wondering if it would make sense to build a second Permanent Portfolio—either focused on the US or on the entire world (global diversification).
Here are some considerations I'm thinking through:
Option 1: Permanent Portfolio USA
Strong historical performance of US equities
Deep bond markets with low-cost ETFs
Dollar exposure as a hedge against EUR weakness
Currency risk and possible overlap with gold
Managing two portfolios in different currencies may be complex
Option 2: Permanent Portfolio Global
Maximum diversification (geographic + currency)
Broader exposure beyond US/Europe
Hard to find global long-term bond ETFs that fit the classic PP idea
Higher complexity and potentially more costly to rebalance
Given I already have a euro-based PP, do you think it makes more sense to:
Add a US Permanent Portfolio (accepting some duplication)
Build a more flexible Global version
Or just stick with one PP in euros and maybe add some global stock exposure separately?
I'd really appreciate any thoughts, especially from those who manage international or multi-currency portfolios.
Thanks in advance!
I'm currently based in Europe and have been running a Permanent Portfolio (25% stocks, 25% long-term bonds, 25% gold, 25% cash) with a focus on European assets. So far, it's done its job in terms of stability and low volatility.
However, I'm now wondering if it would make sense to build a second Permanent Portfolio—either focused on the US or on the entire world (global diversification).
Here are some considerations I'm thinking through:
Option 1: Permanent Portfolio USA
Strong historical performance of US equities Deep bond markets with low-cost ETFs Dollar exposure as a hedge against EUR weakness
Currency risk and possible overlap with gold Managing two portfolios in different currencies may be complexOption 2: Permanent Portfolio Global
Maximum diversification (geographic + currency) Broader exposure beyond US/Europe Hard to find global long-term bond ETFs that fit the classic PP idea Higher complexity and potentially more costly to rebalanceGiven I already have a euro-based PP, do you think it makes more sense to:
Add a US Permanent Portfolio (accepting some duplication)
Build a more flexible Global version
Or just stick with one PP in euros and maybe add some global stock exposure separately?
I'd really appreciate any thoughts, especially from those who manage international or multi-currency portfolios.
Thanks in advance!
