06/20 Permanent Portfolio Rebalance

No news is good news, I guess. Technically a small amount of cash should be invested to increase risk, but it’s such a small amount I don’t want to be bothered with it.

Source: Demonetized Calculations

It certainly wasn’t planned, but I rather like where the portfolio is positioned today. There is still nearly 100% notional exposure due to the leverage, but a 20% cash position. On the surface, this looks like a lot of hassle just to match the Morningstar Large Cap Index (similar to the S&P 500). But the underlying portfolio here is much, much better diversified than that index. Even within the equity bucket, nearly half of the exposure is ex-US. For perspective, ACWI (which is a reasonable investable proxy for market cap weighted global equity exposure) is -5.50% YTD.