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Re:Harry Browne’s 17 Golden Rules of Financial Safety (2013) by Rebelgecko on Sunday September 03, 2023 @09:35PM (#37376341)
I wonder if this has been back tested? The advantages of 1 and 2 don't seem to be a good trade for 25% fewer gains in the majority of years.
Re:Harry Browne’s 17 Golden Rules of Financial Safety (2013) by thunky on Sunday September 03, 2023 @10:08PM (#37376480)
It's a well known portfolio so it has been analyzed quite a bit.

You can backtest it yourself:

https://www.portfoliovisualizer.com/backtest-asset-class-all...

- portfolio 1 is all stocks

- portfolio 2 is 75% stocks, 25% cash

- portfolio 3 is the "Harry Browne Permanent Porfolio" (selected from the "lazy portolios" option)

Take a look at the "drawdowns" tab.