In a scenario where liquidity is an issue, you may pay way more than inflation to close a position, even in a bond. During the 08 crash, my dad bought some quality US State GO bonds at a significant discount, for example.
Thinking about a permanent portfolio means you need to think about events that seem unlikely today. What happens if the US loses a major conflict… aircraft carrier gets sunk, etc. that’s gonna affect treasury debt.
In a scenario where liquidity is an issue, you may pay way more than inflation to close a position, even in a bond. During the 08 crash, my dad bought some quality US State GO bonds at a significant discount, for example.
Thinking about a permanent portfolio means you need to think about events that seem unlikely today. What happens if the US loses a major conflict… aircraft carrier gets sunk, etc. that’s gonna affect treasury debt.