MonsfortPermanent

Having an immutable asset allocation that continually yields profit seems to be the holy grail of the investment world. The most famous approach is probably that advocated by Harry Browne during the 1970s and 80s. The basic 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 classic allocation calls for 25% in stocks, 25% in gold, 25% in bonds (long-duration bonds) and 25% in cash (short-duration bonds). This allocation is aimed at performing equally well during the four economic conditions of prosperity, inflation, deflation and recession or possible combinations. „MonsfortPermanent“ is based on these assumptions, but will deviate from the set rules, mostly by defining a different allocation approach. It should have four sectors as follows: 1. STOCKS: managed and passive funds, occasionally stock positions: 30% 2. HARD ASSETS: mostly gold, to a lesser extent silver, both through ETCs, real estate through „open real estate investment funds“, commodities via ETCs: 25% 3. BONDS: roughly one half of this sector: mid- to long-term bonds via ETFs, focussing on Euro and Dollar government bonds, but also allowing for corporate bonds and other currencies; approximately the second half: the cash position, short-duration bonds issued by governments and / or corporations, currency plays including crypto-currencies: 30% 4. Long VOLATILITY: managed or passive funds: 15% The investments should be long only with no short positions allowed. Trading can be done at any time; however, once a sector deviates by about 5% or more from the basic allocation quota, a recalibration should be done. Each sector should hold at least one position at all times and up to ten at the most. The wikifolio is designed to function with a long-term outlook. Research will be done using generally available sources.