Alvin from BigFatPurse is very kind to pass me a copy of his newest book, The Singapore Permanent Portfolio. I’ve always wanted to know more about the Permanent portfolio, so this comes as a godsend. Why is it named the permanent portfolio? I think I’ll answer that question at the end of this post.

The permanent portfolio is an investment idea that comes from US in the 70s, but the idea is that you hold 4 different types of assets in equal proportion (25% each) that will allow you to profit no matter what the economic situation is. There’s an asset that will thrive in the growth, inflationary, recessionary and deflationary phase of the economy. Think of it as planting 4 different types of crops that will thrive well in the 4 seasons of the year – spring, summer, autumn and winter. When spring comes, crop A will grow exceedingly …