The permanent portfolio is an “all-weather” investment strategy designed to both hedge and seek growth across all economic conditions. It was devised by free-market investment analyst, Harry Browne, in the 1980s. 

The permanent portfolio is composed of an equal allocation of stocks, bonds, gold, and cash, or Treasury bills. This is a representation of Harry Browne’s Permanent Portfolio using four ETFs

Theme

Weight

Color Code

ETF Name

Ticker

Stocks

25%

Black

Vanguard Total Stock Market

VTI

US Long-Term Bonds

25%

Purple

iSHares 20+ Year Treasury Bond

TLT

Short-Term Bond

25%

Green

SPDR BLMBG Barclays 1-3 Mth T-Bill

BIL

Gold

25%

Gold

SPDR Gold Trust

GLD

 

Here is the portfolio’s performance year to date.

Screenshot-2021-06-10-9.47.01-AM-300x192 Permanent Portfolio Update 6.10.21

The VTI outpaces all three asset classes at 13.75%. BIL is holding stable at 0.04%. GLD is virtually neck-and-neck with cash as it recovers from its pullback levels, potentially poised to break above its 2020 record high. Long term bond ETF (TLT) is the laggard, barely holding above negative 10%.

 

Trading futures, options on futures, and forex involves substantial risk of loss and is not suitable for all investors. The use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.