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Permanent Portfolio Performance Charts

Posted: Sat Mar 23, 2013 6:26 pm
by rmelvey
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

Re: Permanent Portfolio Performance Charts

Posted: Sun Mar 24, 2013 9:53 am
by JAIrwin
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.

Re: Permanent Portfolio Performance Charts

Posted: Sun Mar 24, 2013 12:25 pm
by rmelvey
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.

Re: Permanent Portfolio Performance Charts

Posted: Sun Mar 24, 2013 12:31 pm
by JAIrwin
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!

Re: Permanent Portfolio Performance Charts

Posted: Mon Mar 25, 2013 11:31 am
by grayfox
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.

Re: Permanent Portfolio Performance Charts

Posted: Mon Mar 25, 2013 5:11 pm
by hazlitt777
Thanks for the charts.