Reddit reviews Deep Risk: How History Informs Portfolio Design (Investing for Adults Book 3)
We found 2 Reddit comments about Deep Risk: How History Informs Portfolio Design (Investing for Adults Book 3). Here are the top ones, ranked by their Reddit score.
The most complete overview I've read of the shortcomings of the Permanent Portfolio are outlined in Bernstein's Deep Risk. I'd recommend you read that. The whole "Investing for Adults" series is really instructive. Specially for people tinkering with non-conventional portfolios.
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the book distinguishes between deep (loosing your money even in long periods of time) and shallow risks (loosing your money in shorter time frames). the book shows that the PP is not a great Portfolio at preventing Deep risk.
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Some of the shortcomings of the PP are:
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Do note that the original idea of the PP as presented by Harry Browne was to use gold bullion coins. Not ETFs.
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Also do note that I just took a quick glance at my Kindle for these shortcomings. The best way to get informed by this is to actually read the book and draw your own conclusions.
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Like /u/Dissentient I don't believe in the magical Portfolio which survives every possible risk, so my views on this are biased.
If you want to be safe I would consider an inflation protected immediate annuity and/or TIPS (actual TIPS, not a mutual fund).
Some reading if interested:
http://www.amazon.com/The-Ages-Investor-Life-cycle-ebook/dp/B008CM2T2A/ref=sr_1_1?ie=UTF8&qid=1340164538&sr=8-1&keywords=%22the+ages+of+the+investor%22
http://www.amazon.com/Deep-Risk-Portfolio-Investing-ebook/dp/B00EV25GAM/ref=sr_1_3?ie=UTF8&qid=1377803466&sr=8-3&keywords=deep+risk+bernstein
Personally I prefer stocks/bonds but wanted to give another perspective. A mixture of immediate annuity (up to the state insured limit), tips, and stocks would be pretty ideal.