Update: Harry Browne Permanent Portfolio November 2018

Update: Harry Browne Permanent Portfolio November 2018

November 15, 2018 0 By Jeremy




Rules-Based Strategy Update: Harry Browne Permanent Portfolio November 2018

The Harry Browne Permanent Portfolio is a buy and hold system that allocates investor capital into four asset classes. Each of these four asset classes are intended to do well during a specific economic cycle: inflation, deflation, growth, and recession.

Since not all of these economic cycles will occur at the same time, Harry Browne argued that by holding all of them you get solid diversification with good capital protection. The system holds 25% in each of the following assets: a world stock market ETF, and total bond market ETF, a gold ETF, and a treasury bond ETF.

This is a different type of system than a lot of the other strategies Robotic Investing tracks, as well as personally invests in.

It will be a good gauge to determine if the more active strategies will perform better than a simple buy and hold.

You can continue to see the progress results of this system by subscribing to the Robotic Investing newsletter. I will email you whenever a new post goes live, including all of the strategy updates I track on the site.

Harry Browne Permanent Portfolio Rules-Based Investing

Since this is a buy and hold portfolio, there is very little active trading. Instead, the initial portfolio is opened, and then the only thing to do is annual rebalancing. Here are the rules of the strategy:

  1. Segment portfolio into 25% segments
  2. Purchase each of the four ETFs:
    • VT – Vanguard Total World Stock ETF
    • BND – Vanguard Total Bond Market ETF
    • IAU: iShares Gold Trust ETF
    • SHY: iShares 1-3 Year Treasury Bond ETF
  3. Rebalance annually

This is a very conservative strategy. I look forward to seeing how it performs over the years.

Monthly Signals: Harry Browne Permanent Portfolio

There are no signals required for the Harry Browne Permanent Portfolio. Simply buy and hold each of the four ETFs.

Each month I generate the signals for the portfolio using TC2000. If you want to give TC2000 a try in order to generate the signals for the strategies on Robotic Investing, then use this link for $25 off.

There is no change for November 2018 – the system continues to hold VT, BND, IAU, and SHY. The portfolio will be adjusted and rebalanced in July 2019.

Strategy Tracking & Performance: Harry Browne Permanent Portfolio

Here is the portfolio tracker and performance chart for the Harry Browne Permanent Portfolio. The Morningstar Portfolio Tracker is used to track all the systems at Robotic Investing. As you can see the strategy is struggling compared to the S&P 500. Portfolios like this will often lag the market when equities are on a strong bull run.

Each of the portfolios tracked use a hypothetical $50,000 starting value. This portfolio was started on July 2nd, 2018.

Portfolio Value:

Harry Browne Portfolio Value - November 2018

Portfolio Performance:

Harry Browne Portfolio Performance - November 2018

I update all of the strategies at Robotic Investing on a monthly basis. If you want to get notified when each strategy is updated, then please consider subscribing to my newsletter. You will only receive emails when posts have been updated.

Disclaimer: The information provided on this site is for education purposes only. The author is not a registered financial adviser and the ideas discussed on the site are just trading analysis and not recommendations. Robotic Investing doesn’t endorse any of the comments that might appear on the discussion threads. There is no guarantee for those comments to be accurate. By reading this site you automatically agree that Robotic Investing is not responsible for any of your trading decisions. Remember not to risk money that you cannot afford to lose. RoboticInvesting.com and all its products are Copyright© by Robotic Investing and property of Robotic Investing. All Rights Reserved.

Feature Image: Likuliku Lagoon by Adam Selwood