Business and Investing

The Permanent Portfolio is one that allows you to save the capital safely in any economic circumstances. But not only that, but will generate a good return in many years that possess it. We can dream of any future financial nightmare uneasy us, but out of sleep, in reality, you may find yourself safe. Any of the economic climate we can not fear your wallet, not if we see it from the point of view of the long term.

It is very important that your portfolio positive reaction to market movements in the four major states:

- Prosperity. A period of economic growth and bustling shopping streets. Businesses flourish and citizens work, spend money and enjoy the decrease in unemployment.

- Inflation. Prices of consumer goods grow. In the U.S. arrived to give periods of 25% inflation in some years of its recent history.

- Recession. The growth of capitalist society is slow or negative. Businesses go bankrupt, unemployment is rising, people stop spending, bankruptcies, family.

- Deflation. The opposite of inflation. The falling prices of goods and money can buy more things.

These four economic climates tend to overlap each other. For example, inflation generally begins to appear before the end of a long period of prosperity, and disappears but not before sharing months with the first steps of the recession. But one is always predominant, and the permanent portfolio is ready for it.
Continue reading →