NEW YORK ( TheStreet) -- At the depths of the financial crisis, many investors wanted to forsake equity markets forever in favor of alternatives that would hopefully deliver smoother returns and minimize the fear that was so pervasive back then.One strategy that got a lot of attention, in both traditional media and the blogosphere, was the so-called permanent portfolio -- a concept attributed to Harry Browne in the 1980s whereby investors put equal 25% portions into equities via a broad domestic index fund, gold, long-dated U.S. treasury bonds and cash. The big idea, as Browne saw it, is that there will always be at least one of the four that's doing well, which should smooth out the more volatile times like what the markets endured in 2008.
The Permanent Portfolio Proves to Be a Valid Strategy
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