I do this differently than other people. I have my cash buffer (pure HISA) separated, and don't count it as an investment at all. Not part of PP.How do you handle the cash portion of the Permanent Portfolio? Is there a way to earn a little interest without taking on risk and be able to cash out at any time? I keep some of my cash in a GIC, but transferring from the bank's GIC to an online broker often takes days, and there is a risk of missing out on buying shares.
Then, inside the PP, I lump together cash + long term bonds into a single XBB holding. This actually doesn't modify the PP much because the average maturity between cash (0 years) and long term bonds (20 years) is in fact 10 years, which is XBB.
Stated another way, XBB = ZFS + ZFL [ignoring the difference in credit quality]
One implementation is
25% ZFS, the BMO short term bonds
And an equivalent implementation (ignoring the addition of corp bonds) is
For me, the second form has been easier. In my RRSP, then I can hold just that big XBB position. This does, however, add credit risk due to the corporate exposure and my portfolio crashed a bit in March, whereas the ZFS/ZFL version would not have crashed.