NEW YORK ( TheStreet) -- A couple of months ago Global X launched the Permanent ETF which is a play on the old Harry Browne concept of putting 25% equal portions into equities, longer term bond, Treasury bills or cash and gold. The big idea is that no matter what is going on in the world at least one of the four segments will be doing well.The Permanent Portfolio Mutual Fund ( PRPFX) comes close to Browne's original idea and has an outstanding long-term track record that makes studying this worthwhile. PRPFX has an annualized 10-year return of 10.92% vs. 4.1% for the S&P 500 Index including dividends. In 2008 when the S&P 500 declined by 37% PRPFX only went down by 8%.
Gold is denominated in U.S. dollars so one of the regular gold ETFs could work. PERM uses the ETF Securities Gold Trust ( SGOL).