An up close look at an investment strategy that can handle
today's uncertain financial environment
Market uncertainty cannot be eliminated. So rather than attempt
to do away with it, why not embrace it? That is what this book is
designed to do. The Permanent Portfolio takes you through
Harry Browne's Permanent Portfolio approach--which can weather
a wide range of economic conditions from inflation and deflation to
recession--and reveals how it can help investors protect and
grow their money.
Written by Craig Rowland and Mike Lawson, this reliable resource
demonstrates everything from a straightforward four-asset Exchange
Traded Fund (ETF) version of the strategy all the way up to a
sophisticated approach using Swiss bank storage of selected assets
for geographic and political diversification. In all cases, the
authors provide step-by-step guidance based upon personal
experience.
* This timeless strategy is supported by more than three decades
of empirical evidence
* The authors skillfully explain how to incorporate the ideas of
the Permanent Portfolio into your financial endeavors in order to
maintain, protect, and grow your money
* Includes select updates of Harry Browne's Permanent Portfolio
approach, which reflect our changing times
The Permanent Portfolio is an essential guide for
investors who are serious about building a better portfolio.
Autorentext
CRAIG ROWLAND is a serial entrepreneur who has been associated with several technology start-ups, two of which were ultimately purchased by Cisco Systems, Inc. At his last company, Psionic Software, Inc., he was founder, president, and CTO when purchased by Cisco. Another company Rowland was associated with was purchased by 3Com Corporation. He has provided consulting services to other start-up companies in addition to raising millions of dollars in venture capital for his own business.
J. M. LAWSON is an attorney and retirement plan consultant. His practice involves retirement plan design and compliance issues, as well as assisting employers in creating and monitoring retirement plan investment policies and procedures.
Zusammenfassung
An up close look at an investment strategy that can handle today's uncertain financial environment
Market uncertainty cannot be eliminated. So rather than attempt to do away with it, why not embrace it? That is what this book is designed to do. The Permanent Portfolio takes you through Harry Browne's Permanent Portfolio approachwhich can weather a wide range of economic conditions from inflation and deflation to recessionand reveals how it can help investors protect and grow their money.
Written by Craig Rowland and Mike Lawson, this reliable resource demonstrates everything from a straightforward four-asset Exchange Traded Fund (ETF) version of the strategy all the way up to a sophisticated approach using Swiss bank storage of selected assets for geographic and political diversification. In all cases, the authors provide step-by-step guidance based upon personal experience.
- This timeless strategy is supported by more than three decades of empirical evidence
- The authors skillfully explain how to incorporate the ideas of the Permanent Portfolio into your financial endeavors in order to maintain, protect, and grow your money
- Includes select updates of Harry Browne's Permanent Portfolio approach, which reflect our changing times
The Permanent Portfolio is an essential guide for investors who are serious about building a better portfolio.
Inhalt
Foreword xi
Preface: Life is Uncertain xv
Acknowledgments xix
Chapter 1 What is the Permanent Portfolio? 1
A Simple Idea 1
A Simple Allocation 3
Simply Great Results 3
Chapter 2 The 16 Golden Rules of Financial Safety 5
Rule #1: Your Career Provides Your Wealth 6
Rule #2: Don't Assume You Can Replace Your Wealth 6
Rule #3: Recognize the Difference between Investing and Speculating 6
Rule #4: No One Can Predict the Future 7
Rule #5: No One Can Time the Market 7
Rule #6: No Trading System Will Work as Well in the Future as It Did in the Past 8
Rule #7: Don't Use Leverage 8
Rule #8: Don't Let Anyone Make Your Decisions 9
Rule #9: Don't Ever Do Anything You Don't Understand 9
Rule #10: Don't Depend on Any One Investment, Institution, or Person for Your Safety 10
Rule #11: Create a Bulletproof Portfolio for Protection 11
Rule #12: Speculate Only with Money You Can Afford to Lose 11
Rule #13: Keep Some Assets Outside the Country in which You Live 11
Rule #14: Beware of Tax-Avoidance Schemes 11
Rule #15: Enjoy Yourself with a Budget for Pleasure 12
Rule #16: Whenever You're in Doubt about a Course of Action, It's Always Better to Err on the Side of Safety 12
Investing and the Rules of Life 12
Recap 13
Chapter 3 Permanent Portfolio Performance 15
Growth, No Large Losses, and Real Returns: The Holy Trinity 16
Only Real Returns Matter 24
Looking at Total Performance Over Time 26
Recap 30
Chapter 4 Simple, Safe, and Stable 33
Simplicity 33
Safety 34
Stability 35
Making the Most of Your Investments 36
Expect the Unexpected 44
Recap 46
Chapter 5 Investing Based on Economic Conditions 47
When Diversification Fails 48
A Different Way to Diversify 55
Four Economic Conditions 57
Four Economic Conditions þ Four Assets ¼ Strong Diversification 60
How the Portfolio Works with Economic Conditions 62
Recap 64
Chapter 6 Stocks 65
Benefits of Stocks 65
Risks of Stocks 66
Volatility 67
Owning Stocks 68
Recommended Stock Index Funds 69
Which Type of Index Fund to Use? 70
Why Use an Index Fund? 70
Avoid Actively Managed Stock Funds 74
Indexing is a Marathon 78
Beware of Trading Costs 79
Large-Cap and Small-Cap Stocks 80
International Stock Funds 81
A Warning About Company Stock 84
No Index FundsWhat to Do? 85
Recap 85
Chapter 7 Bonds 87
Benefits of Bonds 87
Risks of Bonds 89
Volatility 90
Bonds and Deflation 92
Owning Bonds 93
Bonds to Buy 94
Buying Bonds 94
Other Bond RisksThe Case for Treasury Bonds 98
Bonds to Avoid 103
Flight to Safety 108
Earning Money Multiple Ways 111
Bond Risk Matrix 112
Bond Funds and Retirement Plans 114
Recap 114
Chapter 8 Cash 117
Benefits of Cash 117
Risks of Cash 120
Volatility 121
Owning Cash 123
Cash RisksThe Case for Treasury Bills 128
Cash to Avoid 132
Cash Risk Matrix 140
Cash and Retirement Plans 140
Recap 141
Chapter 9 Gold 143
Benefits of Gold 144
Risks of Gold 145
Volatility 147
Causes of Inflation 148
Gold Protects During Extreme Events 149
No Interest, No Dividends, No Problem 152
Why Do Central Banks Hold So Much Gold? 153
Owning Gold 153
...