- Provide cash flow yield of at least 5%
- Net positive portfolio i.e. not sitting on any paper losses on your invested capital
- Keep significant level of cash flow away from stock market actions
Does it really matter when your marked to market net positive portfolio value riding up and down across market cycles when you are not liquidating your portfolio for cash flow yet?
When to build your ideal Permanent Portfolio?
- Practise market timing - STI down at least 20% from its recent peak i.e. technically defined as entering into a bear market.
- Buy few beaten down blue chips
- Keep 1 or 2 best winners when the Bull charges back
Repeat the same steps again but pick different set of beaten down blue chips.
Disclaimer: Simple is not necessary easy to do!