# Permanent Portfolio Strategy Protects Wealth

> Harry Browne's 1980s strategy allocates equal parts to stocks, bonds, gold and cash to protect wealth in all market conditions.
- Title: Permanent Portfolio Strategy Protects Wealth · MoneyWeek
- Summary: Harry Browne's 1980s strategy allocates equal parts to stocks, bonds, gold and cash to protect wealth in all market conditions. Harry Browne's Permanent…
- Keywords: permanent portfolio, harry browne, stocks, bonds, gold, cash, investment strategy, market volatility, wealth protection, Permanent, Portfolio, Strategy
- Source: MoneyWeek — https://moneyweek.com/investments/investment-strategy/permanent-portfolio-strategy-protect-your-wealth
- Published: 2026-10-18T08:00:00+00:00
- Read time: 1 min
- Topics: permanent portfolio, harry browne, stocks, bonds, gold, cash, investment strategy, market volatility, wealth protection
## Permanent Portfolio Strategy
Harry Browne developed a simple portfolio strategy in the 1980s that allocates equal portions to stocks, long-dated bonds, gold and cash.
## Strategy Components
The strategy uses stocks, long bonds, gold and cash to protect against economic scenarios like inflation, recession and deflation.
## Historical Context
Browne created the strategy during high inflation and record gold prices in the 1980s, similar to today's market conditions.
## Portfolio Benefits
Cash provides liquidity buffer, long bonds hedge against recession, gold acts as chaos hedge, and equities track economic growth.
## Back-Test Results
From 2007 to 2026, the strategy produced 234% cumulative return with 6.4% annualized returns and 6.3% volatility.
## 2008 Market Crash
During the 2008 equity market crash, the portfolio had a drawdown of less than 5% compared to nearly 50% for equities.
## 2022 Inflation Impact
In 2022, the portfolio fell over 10% as inflation rose and central banks raised interest rates, though it remained below equities.
## Key takeaway

Harry Browne's Permanent Portfolio strategy uses equal portions of stocks, bonds, gold and cash to protect wealth during market volatility.