Permanent Portfolio is a self-directed long-term passive investment strategy, introduced in 1981 by Harry Browne and Terry Coxon and simplified into 4 asset class in 1987. It aims to provide consistent market returns and protections in different economic cycles of growth, inflation, recession and deflation. The strategy does not rely on market timing, and requires yearly management and minimal monitoring. This site is to provides educational information for learning about my research and implementation of Singapore version of Permanent Portfolio. Readers can also use the Permanent Portfolio knowledge to diversify their stock heavy portfolio into long term government bonds and gold for better portfolio protections in recession, deflation and inflation. Disclaimer: Use of information on this site represents acceptance of the disclaimer at bottom of this page and Disclaimer page.

Sunday, 29 July 2012

When to top up fresh fund or rebalance Permanent Portfolio

When to top up fresh fund or rebalance Permanent Portfolio?

Top up fresh fund to this portfolio every 12 months, by buying the worst performing 1 or 2 assets at end of every year, this way investor buy assets on the cheap, and try to get the portfolio back to 25% for each asset. This is called rebalancing. Investor can also rebalance my assets back to 25% if any asset drops below 15% or rise more than 35% of entire portfolio. Some uses a rebalance band trigger of 20% to 30% which is also another acceptable method. Use of either rebalance band is up to individual preference and tolerance.

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