🎯 Allocation Calculator
Enter your total capital – the calculator instantly shows how much flows into each asset class.
€
1,000 €500,000 €
Total Capital
€10,000.00
Equally distributed across 4 asset classes
Stocks 25%
Bonds 25%
Gold 25%
Cash 25%
Your Allocation at a Glance
⚠️ Not financial advice. This calculator is for informational purposes only. No guarantees. Investments carry the risk of loss. Source: Harry Browne, Fail-Safe Investing, 1999.
⚖️ Rebalancing Calculator (35/15 Rule)
Enter your current market value per position. The calculator shows you what to buy or sell. Trigger: deviation above 35% or below 15%.
💡 Browne Rebalancing Rule: Rebalance when a position rises above 35% of the portfolio or falls below 15%. This prevents concentration and forces you to "sell high, buy low" systematically.
🌐 Permanent Portfolio in the Four Scenarios
The Permanent Portfolio was specifically designed so that in each economic phase, one component outperforms.
📈 Growth Rising
Expansion, rising profits, prosperity.
- ✅ Stocks (strong)
- ⚠️ Gold neutral
- ❌ Bonds weak
📉 Growth Falling
Recession, deflation, demand collapse.
- ✅ Bonds (strong)
- ✅ Cash profitable
- ❌ Stocks, Gold suffer
🔥 Inflation Rising
Prices rising faster than expected.
- ✅ Gold (strong)
- ✅ Stocks recover
- ❌ Bonds lose value
❄️ Deflation
Falling prices, liquidity preference.
- ✅ Bonds (strong)
- ✅ Cash (safe)
- ❌ Gold, Stocks weak
💡 The core principle: Harry Browne acknowledged that no one can predict the future. The Permanent Portfolio doesn't bet on one scenario – it protects against all four. Hence the equal weighting (25/25/25/25).
📈 Growth Projector
Calculate the projected growth of your portfolio over the years. Adjust the expected annual returns per asset.
Years
1 year50 years
Expected Annual Returns (%)
📚 Historical Performance (1972–2020)
These metrics show how the Permanent Portfolio has performed in the past – without any guarantee for the future.
Annual Return
9.7%
Volatility (Std. Dev.)
6.8%
Max Drawdown
-14%
Sharpe Ratio
0.69
💡 Why so impressive? Low volatility (6.8%) at 9.7% return is extraordinary. The portfolio protects you better than traditional 60/40 portfolios – with similar returns and fewer drawdowns.
🏦 Where Can You Implement the Permanent Portfolio?
European platforms for the four asset classes: stocks, bonds, gold and liquidity.
Trade Republic
Neobroker · from €1
- 3 ETF savings plans (Stocks, Bonds, Gold)
- €0 order fees on savings plans
- Overnight savings integration for cash
- BaFin-regulated
Suitability
⭐⭐⭐
Scalable Capital
Broker + Robo · from €1
- PRIME ETF: savings plans without premium
- Rebalancing alert for 25/25/25/25
- Largest ETF universe in Germany
- BaFin-regulated
Suitability
⭐⭐⭐
Comdirect / DKB
Direct Bank · from €1
- Large ETF selection with discounts
- Xetra-Gold directly purchasable (physical)
- Flexible savings plans on all asset classes
- BaFin-regulated
Suitability
⭐⭐⭐
Raisin Invest
Robo-Advisor · from €500
- Similar 4-class strategy available
- Automatic rebalancing
- Also: savings accounts & fixed deposits
- BaFin-regulated
Suitability
⭐⭐
⚠️ No sponsorship. All platforms listed are independently selected. Please check conditions, fees and tax implications independently. No guarantee, as of April 2026.
🔗 Explore Other Portfolios
Compare the Permanent Portfolio with other proven strategies.
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Frequently Asked Questions (FAQ)
The Permanent Portfolio was developed in 1981 by Harry Browne and described in detail in his book "Fail-Safe Investing" (1999). The core idea: there are four economic scenarios (growth rising/falling, inflation rising/falling), and no investor can reliably predict the future. The portfolio divides capital equally – 25% per scenario – to be protected in every case. It is a philosophy of economic humility.
Browne argues that 60/40 (60% stocks, 40% bonds) is only optimal in one or two scenarios. During inflationary phases bonds lose heavily, and in deflation stocks can collapse. 25/25/25/25 is a deliberate refusal to bet – you admit you don't know the future, and position yourself accordingly – defensively and in balance.
Browne recommended a precise rebalancing principle: when a position rises above 35% of the portfolio (because it performed well), sell back to 25%. When it falls below 15%, buy more. This systematically forces you to "sell high, buy low" – a proven advantage for long-term performance.
From 1972 to 2020, the portfolio achieved an annualised return of approximately 9.7% with only 6.8% volatility. This is remarkable: by comparison, a 60/40 portfolio achieves approximately 9.5% return but with ~10% volatility. Maximum drawdown was about -14%, compared to -50% or more with pure equity portfolios in crises. These figures show the power of diversification. Important: past performance is no guarantee of future results.
Ideal for investors who a) cannot or do not want to predict the future, b) value capital protection and stability, c) can accept lower volatility than pure equity portfolios, d) do not want to constantly adjust their strategy. Not ideal for aggressive return seekers or very short-term investors – the portfolio needs time to work.
Yes, completely. You need four positions: 1) A global equity ETF (e.g. VWRL, IWDA), 2) A bond ETF (e.g. DTLA, IBTA for 20+ years), 3) A gold ETF (e.g. EGLN, XGLD), 4) Cash in a savings account or money market ETF (e.g. XEON). The ETF solution is most practical for most investors.