In his book 'Fail-Safe Investing', the US investment analyst Harry Browne proposed what he called a 'Permanent Portfolio' which had the following characteristics:

• Safety

• Stability

• Simplicity

Each of these characteristics barely requires elaboration. Safety implies that the portfolio can protect the investor against "every possible economic future". Stability implies that whatever market circumstances, the portfolio's value should hold its own, incurring only modest falls. Simplicity implies that the portfolio largely looks after itself, requiring only the minimum expenditure of time in its oversight and maintenance. In terms of particular economic or market environments, Browne highlighted four

David Fuller's view I think many subscribers will conclude that this is an extremely interesting and helpful issue, in terms of Harry Browne's approach and also Tim Price's amendments to it. Most of us do not invest on this basis, for better or worse, but we can only benefit from having an understanding of its logic.