JAIrwin wrote:The Permanent Portfolio is really a fascinating thing! I put together a chart of it's backtested performance during the 1999-2001 downturn, and it was amazing how steady it continued to grow during that time period. The key is that you have to have the discipline to stick with it over the long run and not be tempted to go after the higher returns of a more heavily weighted equity fund portfolio.
Yes I agree! It is such an extreme example of diversification that there are plenty of lessons for beginner/intermediate/advanced investors. I like it enough to use it, but it is certainly not for everyone. It would have taken an incredible amount of discipline to keep buying gold in the 80s-90s, even though the overall portfolio (what really matters) was chugging along great.