The Permanent Portfolio Allocation won the 2008 Lazy Portfolio Smackdown contest among all professionally recommended asset allocation strategies. This contest tracks a couple dozen portfolios that are designed to be easy to implement with low maintenance (hence “Lazy”):

Lazy Portfolio Smackdown Results 2008

They’re reporting a 2008 result of +1.2% for the Permanent Portfolio strategy with the next  closest rival at -18% and worse.

It’s nice to be #1, but the Permanent Portfolio is really not designed for hot and risky performance and will not likely be #1 every year. Instead it is designed to have consistent, stable and safe growth of money with enough diversification to prevent major losses of capital. Over time this performance will add up to big gains and allow you to sleep at night. 

Let’s hope 2009 is better for everyone no matter how you invest.

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