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Thanks for sharing this!

Harry Browne's portfolio concept has been covered quite extensively elsewhere, in part because of his adherence to the belief that no one can predict the future, and that asset allocation is there to help mitigate this unknown quantity. Therefore, the asset allocation needs to cover all the bases. I don't know if this concept originated from him (probably not), but he certainly helped popularize it... and rightly so.

I still think most regular investors should stick with pre-set arbitrary asset allocations whenever possible, so that most can minimize the risk of mis-allocation. That said, for those times when it can't be done, or for those who understand enough asset allocation and would like to "optimize" one to suit their own needs, Harry Browne is a good person to turn to.

That being said, the only thing about it is that such an arbitrary asset allocation may not be ideal to suit everyone's needs. Certainly, the asset allocations of someone starting life in their 20's is still very different than someone who is starting retirement in their 60's.

Unlike the Old Testament Commandments, I too believe that there is room for a little bit of tweaking. For example:

20% International fund.
20% S&P 500 fund.
20% Total bond market fund.
20% TIPS mutual fund.
20% Cash / Money Market fund

This gives you a basic 40% stocks / 60% bonds and cash asset allocation, and yet, still covers you on all fronts.

I have to go, but thanks again for sharing, because I think it's very important to stay grounded about the purpose behind asset allocation (which is mitigate risk, not leveraging gains).