The “permanent portfolio” is a special investing strategy that allows you to create a portfolio that you’ll only need to re-balance once a year — it’ll take care of itself for the rest of the time. This means you won’t have to watch the financial or economics news — your portfolio will be fine no matter what happens to the economy.
This website was created to explain how the permanent portfolio strategy works. Welcome to PermanentPortfolio.Net, where you can learn how to set up your own portfolio that will give you financial security, peace of mind, and the knowledge that no matter what happens to the world economy, your financial situation is strong.
What is the Permanent Portfolio?
The permanent portfolio is a passive investment strategy. The idea is that if you put the right type of investments in your portfolio, then you can actually maintain steady growth during recessions, inflation, depression, deflation, and other harsh market conditions.
The idea is that during every type of market problem, there’s an asset class that benefits. For example, inflation might hurt bonds and cash, but it gives a huge boost to gold and silver. So if you have the right amount of gold and silver in your portfolio, inflation can’t completely wipe you out.
The same goes for other asset classes. Growth stocks do well during good times, government bonds perform well during recessions, Treasury Bills perform well during depressions, etc.
Click here to learn more about how the permanent portfolio is set up.
Who Invented the Permanent Portfolio?
Harry Browne invented the permanent portfolio strategy. He’s one of the all-time best investment writers, and managed a newsletter for decades. Harry Browne focused on building a secure portfolio, and urged his readers to avoid overhyped crap about “getting rich quick” with investments.
Harry Browne is one of the few investment writers that I endorse across the board. I urge everyone I know to read his books, read his articles and newsletters, and take his advice to heart. He encourages slow, steady, and safe investing.
Is There a Permanent Portfolio Mutual Fund?
Yes, it’s called the Permanent Portfolio Family of Funds. It’s a simple way for people to put their money in a portfolio that’s extremely similar to what Harry Browne invented, with a few key differences. The Permanent Portfolio Fund has had a great track record so far, though it’s not for everyone.
How Has the Permanent Portfolio Performed?
The permanent portfolio fund has essentially performed the same as the stock market over the last few decades — only it hasn’t experienced any major crashes or dips. In other words, you get the same returns with less risk. That’s unheard of in the investing world.