13-Oct-08 
EWR Bulletin    Bulletin Index

Special Bulletin, #4

By Richard J. Maybury
Copyright © 2008 by Henry Madison Research, Inc.
www.richardmaybury.com
1-800-509-5400, Fax 602-943-2363

13 Oct 08

Dear Reader,

Been thinking about you. If I were you, I'd like to hear something from Permanent Portfolio Fund, so I called the fund's top man, Michael Cuggino.

Mr. Cuggino has been running the fund since the early 1990s, and no one knows more about it than he does.

I did not expect to hear anything new from him, and didn't, which is in keeping with the fund's philosophy. The whole point of the Permanent Portfolio strategy is to keep things as stable and quiescent as possible, no matter what happens.

Michael points out that we are in the midst of one of the worst financial catastrophes in history, yet the fund is about where it was in August last year.

This while the S&P 500 is down roughly 35% over the same period.

That's not as good as we would like, of course, but try to find anything else in the investment world that protects against inflation and monetary crises as well as deflation, and has done as well.

Lots of people have moved into Treasuries and insured CDs, but these offer limited protection against inflation and they are very vulnerable to the flight from the dollar that I think is coming.

Mr. Cuggino expresses continued faith in the Permanent Portfolio, and plans no changes in strategy or tactics. That was the main comment I was listening for, because I think it shows good judgment.

If someone comes up with a better way to protect against the many and varied threats we face, I will certainly tell you about it, but as for now, the Permanent Portfolio strategy is the best plan I know of, and I'm sticking with it.

Again, I don't really think it was necessary to call Mr. Cuggino, but putting myself in your shoes, that's what I'd want. I hope it helps you sleep better.

--Richard Maybury

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