Gold is money
Posted: Sun Feb 06, 2011 4:32 pm
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What an interesting bit of reverse engineering. Great stuff as usual, Clive. Thanks.Clive wrote: If you substitute stocks for oil, then - as slide 63 indicates - a somewhat similar effect is evident over time. So you might opt to hold 50% in gold, 50% in stocks. Rather than investing in those two assets alone however the volatility can potentially be further reduced by splitting that 50-50 with some cash, and invest the cash in mid duration treasuries (ST/LT barbell or perhaps a 5 year ladder) and you have derived the PP approach.