Permanent Portfolio from Fail Safe Investing Book

Apparently, this permanent portfolio will go through the whole economic cycle in regardless the bull or bear market. Nonetheless, it will not bring big win or big losses & it’s only suitable for those passive investors contented to earn probably 8 to 9% on the compounded yearly basis.

For those people who wish to follow this strategy, the whole setup consists to invest the money in 25% stocks, 25% bonds, 25% gold and 25% cash.

Whatever which one goes up to 35% from 25%, gain of 10%, the decision is to sell & take the profit
Whatever which one goes down from 25% to 15%, loss of 10%, the decision is to buy due to discount.

And it only requires rebalancing once in a year.

It’s that simple and easy & wishes that I could be so lazy to be aware of this strategy when I started investing. 

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