Thursday , 28 March 2024

Asset Allocation

Both Stocks & Bonds Could Decline By 75% – Yes, 75%! – In Coming 10 Years – Here’s Why (2K Views)

The current credit-bubble boom in stocks and bonds is getting long in tooth after 34 years of relentless expansion, and the rise of securities to 400% of GDP is reaching extremes that are increasingly difficult to support, much less push higher. As such, a reversion to generational lows is inevitable, and a valuation level around 50% of GDP for stocks is a fair target. This implies a 75% decline in both stocks and bonds within the next decade, if not sooner.

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Should A Significant Portion of Your Portfolio Be In Gold?

If you had invested in gold in 2004 you would have earned about 10.4%, annualized. I am writing this article, though, to say that you should not consider gold to be a good long-term investment and you should not have a significant proportion of your portfolio in gold. Let me explain.

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Interesting Comparison of U.S. Market-cap-to-GDP Ratio To 20 Other Countries

Two weeks ago, I wrote about Warren Buffett’s favorite tool for measuring the overall valuation of the market: the ratio of total market cap to GDP. Today, we’re going to dig a little deeper into that analysis and compare the U.S. market to 20 other countries you may be interested in investing. Take a look HERE at a chart showing the current market-cap-to-GDP ratio within the context of its historical range. You will find the results very interesting.

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Don’t Confuse "Risk" with "Volatility" – It Could Have Dire Consequences on Your Investments (+2K Views)

A large number of investment professionals confuse risk and volatility to the point where the terms are treated as being virtually synonymous. This has resulted in the flawed investment principle that reducing volatility will (and must) reduce risk. Such thinking is deeply misguided, and following it has dire consequences for investors. Let me explain more about what risk and volatility are and are not.

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It is Imperative to Invest in Physical Gold and/or Silver NOW – Here’s Why (+2K Views)

Asset allocation is one of the most crucial aspects of building a diversified and sustainable portfolio that not only preserves and grows wealth, but also weathers the twists and turns that ever-changing market conditions can throw at it. However, while the average [financial] advisor or investor spends a great deal of time carefully analyzing and picking the right stocks or sectors, the basic and primary task of asset allocation is often overlooked. [According to research by both Wainwright Economics and Ibbotson Associates and the current Dow:gold ratio, allocating a portion of one's portfolio to gold and/or silver and/or platinum is imperative to protect and grow one's financial assets. Let me explain.] Words:1060

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