How a Permanent-style portfolio fared in the 1970s inflation decade
Permanent-style — 25% gold · 25% equities · 25% cash · 25% commodities · quarterly rebalance · physical costs on (coins) · window 1970-01-02 to 1980-01-31 · computed 2026-07-06 with the same engine the app runs.
Solid: this portfolio, real (CPI-deflated) value of $10,000. Dashed: the all-equity baseline.
| Total return (real) | +69.7% |
|---|---|
| Total return (nominal) | +249.3% |
| CAGR (real) | +5.4% |
| Max drawdown (real) | −17.3% |
| Recovery | 3.1 years |
| Purchasing-power ratio | 1.70× |
| Ulcer index | 8.5 |
| Worst calendar year | 1975: +2.9% |
| Physical costs paid | $1,182 |
| Liquidation value | $34,620 |
A $10,000 stake in a Permanent-style portfolio (25% gold · 25% equities · 25% cash · 25% commodities, rebalanced quarterly, physical costs on coins applied) entering the 1970s inflation decade would have ended the window worth $16,970 in real, CPI-deflated terms — a real return of +69.7%. Along the way it fell at most 17.3% from its peak (3.1 years), with an ulcer index of 8.5. The same stake in equities alone returned −40.4% real — this allocation beat it by 110.1 percentage points of purchasing power. Physical ownership — dealer spread, storage, insurance — cost $1,182 over the window.
Open this portfolio in the stress-tester More scenarios
The link above prefills the allocation — adjust weights, costs, and windows from there. Sources and formulas: methodology.
Educational estimates — not financial advice