Let's say you have 5 million and live very simple life spending 50000 per year (1%). Let's say you are not lucky and you buy TSM at the peak (worst possible moment). You don't care where stock market is going. You can live on dividends only (even less). And you know (never looking at stock market ag...

Please post link to data and formula you used. The Permanent Portfolio might be considered as a blend of 50% long duration and 50% short duration, where cash and gold are considered as the short end and LT's/Stocks considered as the long end. Such a equal weighted long and short durations is a barbe...

After playing with numbers and thinking it looks rebalancing would be best when portfolio is up from last rebalancing. So one should wait if portfolio is down after last rebalancing. Any comment?

Let say I have cash for 1-3 years of my life expenses. Why would I need to hold more cash (25% of PP)? I can't find good argument. Rest of assets stay the same (33%gold,33%LT,33%stocks).

Zecco has for many years 10 free trades per month for account bigger than $25,000. So the only cost should be fee per year: for VTI 0,07%.

Rebalancing is generally seen first and foremost as a risk reduction measure. It is not necessarily going to boost returns in all cases. Important is how often to rebalance to achieve lower volatility but not lowering returns much. Questions are: should we rebalance with time (monthly , yearly, ......

Rebalancing between those might have added some benefits. Everybody talks about rebalancing not only for lowering volatility but also achieving higher profit. As I mentioned before I made simple simulation in excel (I can send through email) for 2 assets going: up up, up down, down down; sometimes ...

I think Simata is asking about the worst total draw down, from a daily high to a subsequent daily low (not just in a single day).  Perhaps this would be a peak in 2008 to some subsequent low.  For comparison the S&P index dropped about 55% from its peak on about 10 Oct 2008 to its subsequent lo...

To put a bit more meat as to why, it looks to me that a PP might be constructed using pic-n-mix from a range of stock, LT and cash components from across a range of foreign PP's.  For example perhaps you might opt to hold Japanese stocks, US treasuries and Euro Cash.  Gold is common to each anyway. ...

GoneToWindSurf, AFAICT the PP achieves real (after inflation) gains part due to the stock holding and part due to correlations/volatilities and rebalancing. Stocks over the long term provide real returns - typically 4% is suggested as a reasonable income withdrawal rate which implies inflation + 4%...

There's been some chat about the PP over on the AIM users message board and after I pointed out how you tend to get similar returns no matter if you invest in a domestic or foreign PP due to the currency exchange rates (i.e. a Japanese investors low returns relative to the UK and US since 1972 coul...

For the long dated Gilts you ideally want 30 year or more to maturity, replacing those once they're down to 20 years or less with newly purchased 30 year+.  So from http://www.fixedincomeinvestor.co.uk/x/bondtable.html?groupid=3 the 32 year 7 month 4.5% treasury springs out at the present time.  Gi...

I looked at the daily returns to the permanent portfolio components over the last few years to get some additional insight into how the assets move together.  While this approach may be flawed, from about mid 2005 to today the PP components all moved down on the same day 6% of the time.  In contras...

Clive, can you post numbers in spreadsheet for each year, not only CARG, so we can see how you got there? As an example, a UK PP investor achieved 11.41% annualised return between 1972 and 2008.  A UK investor buying into a Japanese PP achieved a 6.25% return over those same years however the Yen ro...