Ray Dalio discusses his assertion that most portfolios should have gold allocated at 5-10%, if for no other reason than it’s a great diversifying asset.
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Qualivian Investment Partners commentary for the second quarter ended July 30, 2020. Q2 2020 hedge fund letters, conferences and more “Short-term investors will accept a 20% gain because they didn’t spend the time to develop the conviction and foresight to see the next 500%.” - Ian Cassell Executive Summary Readers of investment letters fall into Read More
Ray Dalio: There's One Thing Every Portfolio Should Have
You recommend that most portfolios should contain some gold golf course. Why that's a lot of people think it's not of course in fact it doesn't make sense. Well first of all to structure a portfolio the best way to structure a portfolio is is to have the right kind of balance in your portfolio. So and some amount of gold gold serve a purpose. It is first of all a diversifier of against other assets. You know we have this risk on risk off thing we have. We also have the monetary system we have the Bretton Woods monetary system began after World War II and it had the dollar as the world's reserve currency. There's a risk there. There's a lot of dollar denominated debt. And so one if somebody felt that they didn't want to hold that. And so when you could have exposures to that. So it's diversifying asset in that is sensible and and you know that's the main reason to have gold in the portfolio five to 10 percent.