Valentino Shoes Sale Analysis

Harry Browne's Permanent Portfolio And Market Stages Harry Browne's "Permanent Portfolio" of investing 25% in each of four asset classes is designed to incorporate four general stages or cycles we experience in the economy. Those four cycles are: prosperity, recession, inflation, and deflation. Years ago, Browne advocated investing 25% in stocks, 25% in cash, 25% in gold, and 25% in longterm treasury Cheap Valentino Shoes bonds as a way to cover each of the four economic stages.

The 25% invested in stocks takes advantage of periods of prosperity. Most portfolios overemphasize this market stage, thereby increasing portfolio risk. The second stage, recession, is the period when the investor wants to hold cash. To protect against inflation ravaging the portfolio, Browne advocated putting 25% in gold. To buttress the portfolio against possible deflation, longterm Treasury bonds are assigned a 25% position.

The December 2012 issue of the American Association of Individual Investors Journal carried an interesting article, "The Permanent Portfolio: Using Allocation to Build and Protect Wealth." This AAII article states that over the last 40 years, the Browne allocation plan returned 9.5% compounded annually. From the AAII article, "The worst loss, a drop of 5%, occurred Valentino Online in 1981. In 2008's financial crisis, the portfolio was down only around 2% for the year." That is an amazing performance for such a simple yet conservative portfolio.

What investment instruments cover these asset classes? I would use VTI for stocks, TLT for longterm Treasury bonds, GTU for gold, and TIP for cash. I realize TIP is not a money market ETF, but I use it since the Quantext Portfolio Planner (see analysis below) rejects VUSXX or VMMXX in the analysis.

Browne QPP Valentino Shoes Sale Analysis: Below is the QPP analysis for this four asset class portfolio. As background, the following analysis is based on a forecast that the S 500 will grow at a rate of 7.0% annually. This conservative four asset portfolio is projected to grow at 6.3% over the next six to 12 months, or slightly below the broad equities market. This lowrisk portfolio is projected to have a standard deviation of only 7.6%, or well below our goal of 15% maximum.