I was not planning to do another update to my Permanent Portfolio until August 21, 2020, which would be the five year anniversary I made this portfolio public, but with all that is going on, I thought we’d do a quick check-in.
So, we have had one change regarding the CurrencyShares Singapore Dollar Trust. This is no longer on the exchange so hereon, I will use the actual currency exchange rate between the Singapore Dollar and the U.S. Dollar. It had almost no effect as the Trust never moved very much and you will see at 71SD to 1USD, it is precisely the same value it was in 2015.
Moving on to the portfolio as a whole, much to my surprise, it actually ticked up since the beginning of the year. It went up 1.3% YTD while the S&P and DOW have been down YTD. Perhaps the most disappointing so far this year has been Berkshire Hathaway, NVR, Vanguard’s Small Cap Index Fund, and Vanguard’s U.S. Real Estate Fund. These have taken a dive. It is for these reasons I strongly recommend dollar-cost-averaging so you are buying shares each month or each quarter – sometimes at a lower price and sometimes at a higher price. This portfolio; however, is designed to be static (no trading).
From August 21,2015 through May 1, 2020, the portfolio has returned a gain of 163% (exclusive of dividends) while the S&P has returned 43.7% and the DOW 44%. The portfolio has continued to outperform even in times of turmoil, which is how it was designed to perform.
The next update will happen on August 21, 2020.