Educational portfolio research · Four-regime balance

Permanent Portfolio

An equal split among growth, long-term government bonds, cash-like instruments, and gold. The intent is to keep some exposure suited to each of four broad economic conditions.

How to read this profile

Harry Browne described the framework in the 1980s as a way to keep the portfolio understandable across different economic conditions. The proxy sleeves here are educational and do not reproduce anyone’s holdings.

The equal sleeves make the trade-offs visible and reduce reliance on a single macro story.

Educational proxy allocation

VTI — US equities: 25.0%
TLT — Long-term US bonds: 25.0%
BIL — Short Treasury bills: 25.0%
GLD — Gold: 25.0%

These liquid ETF proxies do not reproduce any person’s current holdings. Historical observations are not predictions.

Where it can struggle

Each sleeve can spend long periods lagging, and equal weights do not remove drawdowns, inflation risk, rate risk, or the need for a personal liquidity plan.