Permanent Portfolio Performance Charts

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.

Permanent Portfolio Performance Charts

Postby rmelvey » Sat Mar 23, 2013 7:26 pm

I recently revamped a part of my website which some of the Bogleheads here might find interesting. It has detailed monthly real return data going back to 1972, and it as all adjusted for inflation. Any PP nerds will probably dig it :D
http://www.stableinvesting.com/p/long-t ... mance.html
User avatar
rmelvey
 
Posts: 404
Joined: Sat Sep 18, 2010 6:17 pm

Re: Permanent Portfolio Performance Charts

Postby JAIrwin » Sun Mar 24, 2013 10:53 am

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.
Jacob Irwin, graduate student/PF blogger
User avatar
JAIrwin
 
Posts: 10
Joined: Thu Mar 21, 2013 12:48 am
Location: Virginia, USA

Re: Permanent Portfolio Performance Charts

Postby rmelvey » Sun Mar 24, 2013 1:25 pm

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.
User avatar
rmelvey
 
Posts: 404
Joined: Sat Sep 18, 2010 6:17 pm

Re: Permanent Portfolio Performance Charts

Postby JAIrwin » Sun Mar 24, 2013 1:31 pm

rmelvey wrote:
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.


Well said! You do have to have a ton of discipline to stay the course with it. In my analysis, I determined that my personality is better suited to just following a more traditional normal stock/bond/reit, etc asset allocation with index funds, although the PP is still fascinating!
Jacob Irwin, graduate student/PF blogger
User avatar
JAIrwin
 
Posts: 10
Joined: Thu Mar 21, 2013 12:48 am
Location: Virginia, USA

Re: Permanent Portfolio Performance Charts

Postby grayfox » Mon Mar 25, 2013 12:31 pm

rmelvey wrote:I recently revamped a part of my website which some of the Bogleheads here might find interesting. It has detailed monthly real return data going back to 1972, and it as all adjusted for inflation. Any PP nerds will probably dig it :D
http://www.stableinvesting.com/p/long-t ... mance.html


:thumbsup Good work.
Gott mit uns.
User avatar
grayfox
 
Posts: 4021
Joined: Sat Sep 15, 2007 5:30 am
Location: Anytown, USA

Re: Permanent Portfolio Performance Charts

Postby hazlitt777 » Mon Mar 25, 2013 6:11 pm

Thanks for the charts.
hazlitt777
 
Posts: 1033
Joined: Fri Aug 12, 2011 5:10 am
Location: Wisconsin


Return to Investing - Theory, News & General

Who is online

Users browsing this forum: Bing [Bot], cinghiale, CPABOB, Exabot [Bot], iaminam, investor, RatDaddy, riptide, Toons and 61 guests