A few readers have shown interest in constructing their permanent portfolio. Since most of the information about permanent portfolio are based in the US, there is a need for Singaporeans to use other financial products that are tailored to our needs. During the interview with Craig Rowland, he highlighted that permanent portfolio is designed to work in your own country, so as not to assume the currency risk. To recap, the permanent portfolio consists of four components with equal weightage: Stocks, Bonds, Cash and Gold.

Stocks

Singaporeans can consider the STI ETF listed on SGX to form the stocks component in their portfolio. It is denominated in SGD but it is focused on Singapore and a few regional companies. It does not have the diversification of international stocks like the Vanguard Total World Stock Index Fund. I would say that the stock market is pretty much correlated despite of geographical ......