Gyroscopic Investing

I bought a copy of Inflation Proofing Your Investments (1981) by Harry Browne and Terry Coxon.  There are several PP portfolios (six in total) in the book that vary depending on what inflation environment the economy is in at the time. 

For example, the deflation PP was listed as:

20% gold coins and bullion
1% silver coins
4% Swiss francs
5% stocks
5% real estate
25% short term dollars
40% long term dollars.


In contrast the "runaway" inflation PP was listed as:

50% gold coins and bullion
10% silver coins
20% Swiss francs
5% stocks
20% real estate
10% short term dollars
owe 15% long term dollars.

Interesting to see that the PP was not fixed in certain amounts at this point and that the PP varied depending on the inflation environment.

As far as a short book review, I think that one would be best served by Fail-Safe Investing rather than Inflation-Proofing Your Investments as PP seems to have matured in Fail-Safe Investing.

It's also interesting to see that HB later reversed his position and went to the 4x25 for simplicity and because "no one can time the markets" to know what economic environment is coming up next.

TripleB wrote: It's also interesting to see that HB later reversed his position and went to the 4x25 for simplicity and because "no one can time the markets" to know what economic environment is coming up next.

You don't have to "time the markets", but you do have to react to current conditions.  Economic conditions are like the Titanic; it takes a long time to change course, but when it does, its bound to last for a long time.

Great book. Much better economic analysis than "Why the best laid plans....."