I posted this as a response to a thread over at the Boglehead’s forum where someone asked the provocative question about the Permanent Portfolio being “best.” Well I’m pretty big on the portfolio (I co-authored a book about it), but I’m not going to say it’s “best”, I’ll simply list out the pros and cons: Pros: – It’s a real return allocation. – Diversification based on economic cycles and is future agnostic. – Diversifies against non-spreadsheet risks. Cons – Doesn’t swing for the fences for returns. – Will lag any single overweighted asset. It’s a real-return allocation Meaning it targets Continue reading →