Resumen de The permanent portfolio
We investigate the performance of the "Permanent Portfolio" in the United States and international markets. This simple approach to asset allocation involves investors splitting their portfolio equally between stocks, bonds, gold and cash. The Permanent Portfolio does not consistently generate returns that are greater than those to a buy-and-hold stock portfolio or to stock and bond portfolios. By construction, its returns are the average of the four component asset classes. However, the Permanent Portfolio does outperform traditional portfolios on a risk-adjusted basis. It generates larger Sharpe ratios, larger Jensen alphas and has less downside risk.
