Carlton Chin has another version of a so-called permanent portfolio (link). The concept was popularized decades ago by Harry Browne. The original was 25% cash, 25% bonds, 25% stocks, 25% gold, rebalancing maybe once a year as asset prices move up and down.
Chin adds some in vogue wrinkles such as REITs and international exposure, and substitutes a broader commodity fund for gold.
I am a fan of the concept of permanent portfolios. I see a lot of plungers betting heavily on the latest hot market, and eventually get left without a chair when the music stops. They tend to have the belief that they will get out before that happens. Rarely does that happen. Those that can some what consistently call tops in major markets tend to be very wealthy, and only maybe 5% to 10% get their calls correct. Mostly top callers are too early, with 10 tops called for every top that occurs.
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