MonsfortPermanence

An immutable asset allocation that continually yields profit seems to be the holy grail of investing. A famous approach is that advocated by Harry Browne during the 1970s and 80s. The tenets are that the future can not be predicted and that a fixed diversification across asset classes, which should be upheld at all times, protects against unforeseen developments. Browne´s allocation calls for 25% in shares, 25% in gold, 25% in bonds (long-duration bonds) and 25% in cash (short-duration bonds). This allocation is aimed at weathering the four economic conditions of prosperity, inflation, deflation and recession or possible combinations. „MonsfortPermanence“ is based on these assumptions, but takes a different view on asset classes (sectors): 1. ENTREPRENEURSHIP: shares via managed and passive funds: approx. 25% 2. SOVEREIGNS: mostly gold, to a lesser extent other precious metals, also an allocation to Bitcoin, all via ETCs/ETPs: approx. 25% ("Sovereigns" doesn´t refer to bonds here, but to assets largely independent from third parties) 3. CREDIT: managed and passive funds, which provide a mostly international exposure to bonds; a short-duration vs. long-duration approach might be considered: approx. 25% 4. SYSTEMIC RISK MITIGATION: a) alternative strategies (e.g. arbitrage, long volatility, trendfollowing), b) alternative assets (e.g. art, commodities, currencies, forest, infrastructure, real estate), c) broad array of investment vehicles (e.g. ETFs, ETCs, ETPs, mutual funds, multi-asset funds, tokenisation), as available on wikifolio.com: approx. 25% Investments should be long only with no (direct) short positions allowed. Trading can be done at any time; however, once a sector deviates by about 5% from the basic allocation quota, a recalibration should be done. Each of the four sectors should hold one position at all times and up to five at the most. The wikifolio is designed with a long-term outlook. Research will be done using generally available sources.