The permanent portfolio: stocks, bonds, gold and cash
Harry Browne's idea: four equal parts, each meant for a different state of the economy. Built to survive anything rather than to win.
The rule
A quarter each in stocks, long-term government bonds, gold and cash. Once a year bring the parts back to 25% each.
Why people use it
Each part has its season: stocks like growth, long bonds like falling prices and recessions, gold likes inflation, cash helps when everything else falls. Something in the portfolio is usually working.
Where it hurts
In good years for stocks it lags far behind: only a quarter of the money is in them. Half the portfolio, gold and cash, earns no profit of its own.
How our bot runs it
25% each in SPY (stocks), TLT (Treasuries over 20 years), GLD (gold) and BIL (short Treasury bills). Rebalanced once a year, on the first trading day of January.
Live account
A virtual $100,000 account that follows this rule. Every trade is on the bot's page.
| Bot | Account | Return |
|---|---|---|
| Permanent portfolio | $99,963 | −0.04% |