Permanent Portfolio (Browne)
Harry Browne's Permanent Portfolio allocates 25% each to stocks, long-term bonds, gold, and cash. Its simplicity is its strength: four uncorrelated assets, rebalanced annually.
Allocation
What if you add Bitcoin?
Adding Bitcoin changes the risk-return profile. Here is how different allocations compare, reducing other positions proportionally:
| Portfolio | Return | Volatility | Sharpe |
|---|---|---|---|
| Base (Permanent Portfolio (Browne)) | 4.90% | 6.54% | 0.28 |
| With 5% Bitcoin | 5.41% | 7.10% | 0.33 |
| With 10% Bitcoin | 5.91% | 8.13% | 0.35 |
Returns are geometric (compound). Sharpe ratio uses 3.10% risk-free rate (US Cash, JPM LTCMA 2026). Forward-looking estimates, not predictions.
How these numbers are calculated
Expected returns and volatilities come from J.P. Morgan's 2026 Long-Term Capital Market Assumptions (30th edition). Portfolio risk is computed using the full 27x27 correlation matrix, not simple weighted averages. The Sharpe ratio uses 3.10% (US Cash) as the risk-free rate.
For full methodology details, see the methodology page.
Customize this portfolio
Adjust weights, add constraints, try different optimization methods.