Permanent Portfolio
TacticalFreeconservativeBased on research by Harry Browne · Browne, H. (1999). Fail-Safe Investing
This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.
About this Strategy
The Permanent Portfolio, created by Harry Browne, is a classic all-weather allocation that divides the portfolio equally (25% each) across four asset classes: stocks, long-term bonds, gold, and cash. An optional tactical variant applies a 200-day SMA trend filter to the three risky assets (stocks, bonds, gold), shifting any below-trend allocation to cash for additional downside protection.
Strategy Rules
- 1Static variant: 25% SPY + 25% TLT + 25% GLD + 25% BIL
- 2Tactical variant: apply 200-day SMA filter to SPY, TLT, and GLD
- 3If risky asset is above its 200-day SMA → hold the 25% allocation
- 4If below 200-day SMA → shift that 25% to BIL (cash)
Key Differentiators
Research Source
Based on research by Harry Browne
Browne, H. (1999). Fail-Safe Investing
Strategy Info
- Type
- Tactical (TAA)
- Frequency
- monthly
- Next Rebalance
- Jun 109:30 ET (28d)
- Variants
- 2
- Risk Category
- conservative
- Regime
- Mixed
- Signal Date
- 2026-05-29
- Tags
- all-weather
- Type
- Tactical Asset Allocation (TAA)
- Trading Frequency
- Monthly (last trading day)
- Rebalancing
- Full portfolio rebalance each month
- Universe Size
- 4 assets (SPY, TLT, GLD, BIL)
- Allocation Method
- Equal weight 25% per asset class
- Tactical Variant
- Optional 200-day SMA filter on risky assets (SPY, TLT, GLD)
- Cash Mechanism
- Tactical variant: assets below 200-day SMA → allocation moved to BIL
- Data Source
- Institutional-grade market data
Asset Classes
Permanent Portfolio at a glance
Permanent Portfolio is a tactical asset allocation (TAA) strategy by Harry Browne across US Equity, Long-Term Treasuries, Gold, T-Bills/Cash, rebalanced monthly. Backtested 1987-06-30 to 2026-05-04 (39.0 years): 6.9% CAGR, 1.02 Sharpe, -17.3% max drawdown, 6.7% volatility.
- Type
- Tactical (TAA)
- Author
- Harry Browne
- Rebalancing
- Monthly
- Risk
- Conservative
- Period
- 1987-06-30 to 2026-05-04
- CAGR
- 6.9%
- Sharpe
- 1.02
- Max Drawdown
- -17.3%
- Volatility
- 6.7%
Permanent Portfolio — Tactical Asset Allocation Strategy
The Permanent Portfolio, created by Harry Browne, is a classic all-weather allocation that divides the portfolio equally (25% each) across four asset classes: stocks, long-term bonds, gold, and cash. An optional tactical variant applies a 200-day SMA trend filter to the three risky assets (stocks, bonds, gold), shifting any below-trend allocation to cash for additional downside protection.
Backtest Performance (1987-06-30 to 2026-05-04)
| Metric | Permanent Portfolio |
|---|---|
| Compound Annual Growth Rate (CAGR) | 6.9% |
| Maximum Drawdown | -17.3% |
| Sharpe Ratio | 1.02 |
| Sortino Ratio | 1.39 |
| Annualized Volatility | 6.7% |
| Calmar Ratio | 0.40 |
| Total Return | 1236.5% |
| Backtest Period | 39.0 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- conservative
- Variants
- 2
- Author
- Harry Browne
- Source
- Browne, H. (1999). Fail-Safe Investing
Asset Classes
- US Equity
- Long-Term Treasuries
- Gold
- T-Bills/Cash
Categories
Track Permanent Portfolio in Your Portfolio
Sign up for BestFolio to get monthly rebalancing signals, blend strategies into custom portfolios, and receive alerts when allocations change.