For the month of December 2020, the Enhanced Permanent Portfolio account added 2.09% and ended the year 2020 with an excellent performance of 19.74%
Even more important than this performance was the exceptionally low volatility or risk of the strategy during this very volatile year. Below you can see the Interactive Brokers Risk Analysis which shows a downside deviation (or risk) of only 0.48% which is about 10x lower than the downside risk of the two benchmarks (ACWI and DJ600).
The reason for this low downside risk was the fact that the strategy invests a bigger part in so called “safe haven” assets (Treasuries and Gold) and only about 1/3rd of the portfolio is invested in “riskier” equity.
Your Rational Invest Team
Walter Baumann / Frank Grossmann / Thomas Ritter
Tel +41 44 515 48 00 / Email