Asset Allocation

When sh-t happens at the end of an excessive bubble era, it will always be the worst kind, and what can be worse than a major war that could develop into a nuclear and world war.

From my perspective, true diversification is more than just a balance of conventional investments spanning cash, equities and fixed income. There’s a vast universe of alternative investments out there that may suit your risk profile and are worthy of a closer look. Let’s discuss.

Here's a definition of precisely what constitutes a melt-up: “A melt-up is a sustained and often unexpected improvement in the investment performance of an asset or asset class, driven partly by a stampede of investors who don’t want to miss out on its rise, rather than by fundamental improvements in the economy.“

This article compares the returns of gold stocks and gold bullion in bull markets and explains how gold stocks outperform thanks to profit expansion, and shows why there might be more upside for gold miners to come.

Diversification allows us to either reduce risk for the same level of expected return or increase expected returns for the same level of risk and below are arguments for diversifying across stocks, across countries, and across asset classes.

The stock market bubble continues to inflate, while the price of silver remains range-bound but a reversal in those two asset classes is coming, and based on history it could be one for the record books. In fact, you might want to refrain from sipping hot coffee while viewing the tables below.

An alternative investments is an investment that falls outside the conventional categories of cash, stocks and bonds. [Here's how they work, the various types, their risks and their advantages.] 

The ultimate hedge against inflation is precious metals, and I expect gold, silver and platinum to head much higher in the next months and years.

Investors may be wondering how to position their portfolio to hedge against inflation and this article identifies which asset classes have beat inflation in recent years.

The chart below looks at the Silver/S&P 500 ratio over the past 40-years, highlighting several long-term trends and it suggests that silver is on course to outperform the S&P 500 for years to come.