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Where to put money to invest better

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Money Talk > Investing, Stocks and Bonds

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johnst22
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Cash: $ 0.20

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Joined: 25 May 2018

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Allocate at least 5% of your liquid assets to gold bullion. Equities are doomed to mean revert.

As it happens, revenues, real estate prices, and demand for commodities will fall. As a result, nearly all assets will lose value.

The way to lessen a fall in portfolio value during a crisis is to understand asset correlation. You want to own assets that tend to move opposite of most other investments.

Finding uncorrelated investments is not easy. You can count them on one hand. Some bonds do well, but certainly not all of them. Dividends will help, but they can’t make up for a big fall in the markets.

Gold, however, is largely uncorrelated to stocks and many other investments. There have been seven recessions since 1965. In five of the seven recessions, the gold price rose. And three of those times it soared double digits. In only one recession did gold suffer a noticeable decline (-9.1% in 1990). Even in the midst of the economic collapse of 2008–2009, gold moved higher.
Post Fri May 25, 2018 2:17 pm
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