No, Your Portfolio Should Not Have 20% in Gold and 30% in Cash

My latest for Alpha Baskets looks at an Everyone Into The Bunker type of portfolio. These are always interesting to consider because a small defensive component can improve a portfolio’s stats in terms of risk adjusted returns but of course too much defense and you end up with a portfolio of alternatives hedged with a little bit of equity exposures.

From the post;

The framing of this portfolio is an expectation of some terrible outcome; deflation, hyperinflation, a return to a gold standard or social upheaval. Rickards apparently believes that the end is nigh for the financial system.

Please click through to read the rest.

Also, this week’s Market Update in which we learned that some front running is now legal?

Buick 1


I went to a car show over the weekend.


  1. You sound like an indexer more and more.

    • as opposed to comments that regularly chide me for believing in active management

  2. That’s the point. You sound like a passive investor and yet you use active strategies like market timing. Statistically, your performance is highly unlikely exceed the cost of active management. So why bother? Of course you could be the outlier but we won’t know for another 30 or 40 years.

    I think your writings regarding living within ones’ means, purposeful life etc. are much more beneficial to one’s financial life than portfolio construction beyond a basic allocation to stocks and bonds.

    I have been a reader for many years and I do believe that I can detect a shift away from active trading at least from your writings. This is a good thing.


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