Harry Browne Permanent Portfolio

Background

The Permanent Portfolio was developed by Harry Browne, an American financial author and investment adviser. Browne observed that investors struggle to forecast inflation, deflation, recessions, and booms, and he sought a simple, rules-based approach that could remain resilient without prediction or frequent trading. His aim was a portfolio that protects purchasing power, preserves capital, and keeps investors calm enough to stay the course.

Primary Goals

The primary design goal is capital preservation with stable, inflation-adjusted returns across shifting economic conditions. A secondary goal is emotional stability—reducing the need to time markets and minimizing the urge to react to headlines. The portfolio is constructed around four broad macro environments, with each component intended to lead when its regime dominates:

• Prosperity (growth/expansion): Rising profits and steady demand favor assets tied to economic growth.
• Inflation (rising prices/currency debasement): Tangible stores of value help defend purchasing power.
• Deflation (falling prices/contraction): High-quality government debt tends to appreciate as interest rates decline.
• Recession or crisis (flight to safety/liquidity stress): Cash-like reserves provide stability and optionality.

By balancing assets that respond differently to these regimes, the strategy seeks to avoid relying on any single forecast while smoothing the ride for long-term investors.

Construction

The portfolio uses four broad asset categories chosen for their complementary roles and historically low correlations:

• Broad stocks: Provide growth potential during periods of economic expansion and rising corporate earnings.
• Long-term government bonds: Offer defense in deflationary environments and when interest rates fall, counterbalancing equity volatility.
• Gold: Acts as a hedge against inflation and monetary instability, and can diversify away from traditional financial assets.
• Cash or short-term Treasury bills: Contributes stability, liquidity, and the ability to rebalance after market declines.

Together these components create a simple, diversified structure intended to perform reasonably in prosperity, protect during stress, and preserve purchasing power over time.

Performance & Returns

Total Return by Period

Updated: Nov 13, 2025

1 Day	1 Week	28 Days	90 Days	1 Year	3 Years	5 Years	10 Years
-0.82%	0.94%	-1.14%	8.01%	17.45%	43.82%	28.21%	83.50%

Total Return by Year

2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
11.39%	11.40%	-13.69%	28.48%	16.49%	16.54%	-1.62%	10.63%	5.99%	-2.86%

10 Year Performance

Total Return	Annualized Return	CAGR	Max Drawdown	Sharpe Ratio	Sortino Ratio	Calmar Ratio	Ulcer Index
83.50%	6.37%	6.27%	-30.08%	0.45	0.63	0.21	0.06

Asset Allocation

Asset Class	Symbol	Weight %
Vanguard Total Stock Market ETF	VTI	25.0
SPDR Gold Shares	GLD	25.0
iShares 1-3 Year Treasury Bond ETF	SHY	25.0
iShares 20+ Year Treasury Bond ETF	TLT	25.0

Total Return Graph

Comparisons with Other Portfolios