Modified Permanent Portfolio

Modified Permanent Portfolio Strategy Explanation Video

The Permanent Portfolio seeks to offer smooth returns over time by investing an equal amount in 4 uncorrelated asset classes (stocks, long-term bonds, short-term bonds and gold). Our modified version will invest only in the assets that are currently in an uptrend among the 4 in the universe. If no assets are in an uptrend, it will invest 100% of its assets in short or intermediate-term bonds.

Since 2006, this portfolio has returned 7.8% per year, outperforming its benchmark by 0.6%

Modified Permanent Portfolio
60/40 Allocation
* Returns are model returns and do not reflect actual trading. Full performance disclaimer

Annual Return: 7.8% 60/40 Portfolio: 7.2%
Year To Date: 11.9% 60/40 Portfolio: 4.1%
Beta: 0.08 Standard Deviation: 14.2%
Full Return History

Portfolio Holdings


Ticker Date Added Return
GLD 10/19/2018 58.39%
TLT 12/14/2018 48.68%
SPY 5/1/2020 14.07%
SHY 11/16/2018 7.43%

Latest Changes

Last Rebalancing: 7/24/2020  Next Rebalancing: 8/21/2020

Additions Deletions
Performance Disclaimer: Returns presented on Validea.com are model returns and do not represent actual trading. As a result, they do not incorporate any commissions or other trading costs or fees. Model portfolios with inception dates on or after 12/30/2005 include a combination of back tested and live model returns. The back-tested performance results shown are hypothetical and are not the result of real-time management of actual accounts. The back-testing of performance differs from actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Back-tested returns are presented to provide general information regarding how the underlying strategy behind the portfolio performed in our historical testing. A back-tested strategy has the benefit of hindsight and the results do not reflect the impact that material economic or market factors may have had on advisor's decision-making if actual client assets were being managed using this approach.

Optimal portfolios presented on Validea.com represent the rebalancing period that has led to the best historical performance for each of our equity models. Each optimal portfolio was determined after the fact with performance information that was not available at portfolio inception. As a result, an investor could not have invested in the optimal portfolio since its inception. Optimal portfolios are presented to allow investors to quickly determine the portfolio size and rebalancing period that has performed best for each of our models in our historical testing.

Both the model portfolio and benchmark returns presented for all equity portfolios on Validea.com are not inclusive of dividends. Returns for our ETF portfolios and trend following system, and the benchmarks they are compared to, are inclusive of dividends. The S&P 500 is presented as a benchmark because it is the most widely followed benchmark of the overall US market and is most often used by investors for return comparison purposes. As with any investment strategy, there is potential for profit as well as the possibility of loss and investors may incur a loss despite a past history of gains. Past performance does not guarantee future results. Results will vary with economic and market conditions.