Rich people use the permanent portfolio (or something like it)

[Indices]

http://www.reuters.com/article/2011/10/ ... LS20111004

[gizmo_rat]

"interest in the portfolio is still limited to the most "paranoid" clients"

Well at least I have one thing in common with the rich folks

[clacy]

"interest in the portfolio is still limited to the most "paranoid" clients"

Well at least I have one thing in common with the rich folks

LOL....paranoia

[KevinW]

I found the following sentence most interesting:

Other bankers said they have also advised clients to be underweight in stocks, with suggested allocations of 25 to 30 percent of their portfolio compared to 40 percent or more prior to the financial crisis.

So a 40% stock allocation was typical for rich investors.  That's much lower than the 60-90% that's so often suggested for middle class wage earners.  The more I learn, the crazier that advice seems.

[AgAuMoney]

I found the following sentence most interesting:

Other bankers said they have also advised clients to be underweight in stocks, with suggested allocations of 25 to 30 percent of their portfolio compared to 40 percent or more prior to the financial crisis.

So a 40% stock allocation was typical for rich investors.

It says, "40% or more" which means 40% would have been the minimum in ordinary times.