PP Tracking Error

General Discussion on the Permanent Portfolio Strategy

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EdwardjK
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PP Tracking Error

Post by EdwardjK »

According to ETFREPLAY.COM, the PP is up 10.4% YTD.  However, that assumes you're able to maintain a strict 25% allocation across the four assets.

Frequent rebalancing will cause tax consequences and transaction fees that will eat into the return and cause a tracking error compared to a constant 25% allocation.  So what is the consensus opinion on frequency of rebalancing and rebalancing bands?

Thanks,

Ed
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MediumTex
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Re: PP Tracking Error

Post by MediumTex »

35%/15%.

Basically, Harry Browne's recipe.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
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