Tuesday, February 28, 2012

Permanent Portfolio ETF

In the past I have offered a bit of financial advice, mostly related to my philosophy of living below your means and saving for a rainy day. I generally stay away from offering exact investment advice as I do not believe I am good at predicting the future and have any sort of clue about what investment are likely to work out for you in the long run. With that said, a big influence on my investment strategy was the late, great, Harry Browne. He developed what he referred to as the "Permanent Portfolio", this was basically a plan that said you should allocate your savings with 25% bonds, 25% stocks, 25% cash, and 25% gold, for your investment portfolio and this will give you the most stable returns possible. Over time his plan has worked, it is what I base my investment strategy on. However, even though his plan is simple, some people still find some of the details complicated, like the re-balancing aspect of the plan. So I am happy to see this new ETF, I like what I see in it so far, and think if you are looking to invest in an ETF or mutual fund with the goal of low volatility this is one to look into. Of course you will want to consider all your options and decide what is best for you, as every circumstance is different.

BTW- I have no dog in this race. I just think this looks like a good way for those interested in doing the PP to get into it without having to do much work.

No comments: