Permanent Portfolio Nov 2013 Update

As mentioned in one of my previous posts, my next rebalancing of my US Permanent Portfolio is in October. Looking at the performance of the 4 asset classes, I bought Gold (IAU) and Bonds (TLT) to rebalance my portfolio to my pre-determined allocation. The chart below shows the performance of the 4 asset classes YTD.

The 2 white ovals represent the period where I re-balanced. Of course in between these periods, there are lots of market noise, e.g. to taper or not to taper QE etc. In the next six months, if bonds and gold drop further, I would be able to buy them even cheaper. If the stock market crashed, I would have avoided buying stocks at a high. Win-Win situation. Let's wait and see what will happen during April 2014.