Gyroscopic Investing

Another episode - In this show we discuss strategy vs. outcome and the four economic cycles of the Permanent Portfolio. I also answer a reader question about taxable investing with the Permanent Portfolio allocation and commercial Permanent Portfolio Mutual Fund (PRPFX).

Here is the feed URL so you can subscribe in iTunes:

https://web.archive.org/web/20160324133 ... dcasts.xml

Here is the direct link to the first show:

Crawling Road Money Show – Episode 2

Great episode.  It's funny but I hadn't really considered the implications that the deflation protection in the Permanent Portfolio had never been tested in the real world.  I'm glad you reminded me of that fact.  A related point is that no other portfolio had really ever been tested in a real deflationary environment, either, and it shook most of them apart.

It's a reminder of how important a solid theoretical underpinning is for any portfolio in addressing whatever comes.  You can't just weave a bunch of crap together, backtest it, and assume that the resulting calculation will predict the future for you.

I'm really finding myself looking forward to these podcasts.

It was interesting watching the portfolio work in deflation. Good economic theory trumps backtests.