In our previous blog, we mentioned about Permanent Portfolio and why it is an interesting approach to balance uncertainty between inflation and deflation. You can also find a similar approach with Ray Dalio’s All-Weather Portfolio.
Below is a Real Vision discussion between Jeffrey Gundlach and Raoul Pal. Jeffrey talked several times on the concept of the permanent portfolio approach, and how it plays into managing risks while patiently waiting for the next big trade. We are living in a unique environment with a potential transition from a monetary-policy driven market to a more fiscal-policy driven market, similar to what we have seen in Japan. It pays to stand about the current noise and see 18 months ahead. Enjoy!