Can Harry Browne Permanent Portfolio be FireCalc'd?
Is it possible to FireCalc the Harry Browne Permanent Portfolio (PP)? The inability to include gold in FireCalc seems the most obvious hurdle to me, but I’m a real FireCalc novice.
Could the PP be approximated using this option in FireCalc?:
“A portfolio with random performance, with a mean total portfolio return of ____% and variability (standard deviation) of ____%. Assume an inflation rate of 3.0%”
From Bogleheads and Crawling Road blog I find a compound annual growth rate (CAGR) of 10.0 and standard deviation of 8.43% for the PP for 1972 – 2007. Would these numbers be appropriate to just plug into the FireCalc option above…or is that mixing apples and oranges?
Finally, if not FireCalc, are there any other calculators that could be used to simulate the PP as a retirement portfolio along the lines of FireCalc?