Permanent Portfolio (Static)
StaticProconservativeBased on research by Harry Browne · Browne, H. Fail-Safe Investing (1999)
This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.
Launched Sep 1999About this Strategy
Classic 4x25% allocation: stocks, long bonds, gold, and cash. Covers prosperity, deflation, inflation, and recession.
The complete strategy logic, asset universe, and rebalancing rules are available to Pro subscribers. This includes the full methodology description, author notes, and implementation details.
Pro subscribers also get access to current signals, full backtest history, and the ability to blend this strategy into custom portfolios.
Strategy Rules
Pro subscribers only
- 1Allocate 25% to SPY (prosperity asset)
- 2Allocate 25% to TLT (deflation asset)
- 3Allocate 25% to GLD (inflation asset)
- 4Allocate 25% to SHY (recession/cash asset)
- 5Rebalance annually or when drift exceeds threshold
Key Differentiators
Research Source
Based on research by Harry Browne
Browne, H. Fail-Safe Investing (1999)
Strategy Info
- Type
- Fixed / Strategic
- Frequency
- annual
- Next Rebalance
- Jan 409:30 ET (227d)
- Variants
- 1
- Risk Category
- conservative
- Tags
- static, all-weather
- Type
- Fixed/Strategic Asset Allocation
- Trading Frequency
- Annual or on-drift rebalancing
- Number Of Holdings
- 4 ETFs
- Equity Allocation
- 25%
- Bond Allocation
- 50% (25% long-term + 25% short-term/cash)
- Gold Allocation
- 25%
- Philosophy
- Equal-weight coverage of all economic regimes
- Risk Level
- Conservative
Asset Classes
Permanent Portfolio (Static) at a glance
Permanent Portfolio (Static) is a fixed-allocation portfolio by Harry Browne across US Equity, Long-Term Treasuries, Gold, Short-Term Treasuries, rebalanced annual. Backtested 1978-12-29 to 2026-05-20 (47.4 years): 7.9% CAGR, 1.21 Sharpe, -18.6% max drawdown, 6.4% volatility.
- Type
- Fixed Allocation
- Author
- Harry Browne
- Rebalancing
- Annual
- Risk
- Conservative
- Period
- 1978-12-29 to 2026-05-20
- CAGR
- 7.9%
- Sharpe
- 1.21
- Max Drawdown
- -18.6%
- Volatility
- 6.4%
Permanent Portfolio (Static) — Fixed Allocation Portfolio
The static Permanent Portfolio by Harry Browne divides the portfolio equally (25% each) across four asset classes designed for four economic states: stocks (prosperity), long-term bonds (deflation), gold (inflation), and cash (recession). Pure static version with annual rebalancing — no trend following or SMA filters.
Backtest Performance (1978-12-29 to 2026-05-20)
| Metric | Permanent Portfolio (Static) |
|---|---|
| Compound Annual Growth Rate (CAGR) | 7.9% |
| Maximum Drawdown | -18.6% |
| Sharpe Ratio | 1.21 |
| Sortino Ratio | 1.65 |
| Annualized Volatility | 6.4% |
| Calmar Ratio | 0.43 |
| Total Return | 3637.2% |
| Backtest Period | 47.4 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- conservative
- Variants
- 1
- Author
- Harry Browne
- Source
- Browne, H. Fail-Safe Investing (1999)
Asset Classes
- US Equity
- Long-Term Treasuries
- Gold
- Short-Term Treasuries
Categories
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