Many people have searched and searched for the holy grail of investing: a portfolio that provides a good return with low risk that can weather the economic storms, no matter what they be. Some feel that they have found it in The Permanent Portfolio.

The Permanent Portfolio is a concept that was designed by Harry Browne, an investment advisor and Libertarian candidate for President in 1996 and 2000.

The Permanent Porfolio was designed to deal with the broad movements in the general economy, including:

  1. Prosperity
  2. Inflation
  3. Tight money/recession
  4. Deflation

In order to profit from each of these economic cycles, the permanent portfolio holds an equal allocation to each of these four asset classes:

  1. Stocks
  2. Bonds
  3. Gold
  4. Cash

In today’s show we discuss the Permanent Portfolio with Jake Desyllas from The Voluntary Life. We discuss the design and philosophy behind it as well as the strengths and weaknesses of the approach. Enjoy the show!

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