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The Permanent Portfolio

By Michael Batnick, CFA
The Irrelevant Investor, LLC

Whether you’re an equity investor, hiding out in bonds, or waiting for the dollar to collapse, you’re making money. The permanent portfolio, which is an equal weighting of everything from stocks to bonds, gold, and cash, just had its best run in 40 years!

The main tenet behind this type of strategy is based on the old adage, “Don’t have all your eggs in one basket.” This means, by definition, that you’ll be underexposed to the best basket—stocks in this case.

Since 1976, the S&P 500® Index gained 11.2% a year. The permanent portfolio gained 7.9% over the same time.

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z - Cover Image: The Permanent Portfolio