Gold is a better diversifier when bonds are this correlated to stocks

  • 📰 KitcoNewsNOW
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 78%

Indonesia Berita Berita

Indonesia Berita Terbaru,Indonesia Berita utama

(Kitco News) - Bonds are no longer a very good diversifier as they have become too correlated with equities, making gold and other commodities a superior choice, according to David Dierking, Editor of ETF Focus at TheStreet.

Dierking noted that investors who stuck with the classic 60/40 portfolio over the past couple of years have suffered, as “only a 100/0 portfolio really had a chance at generating positive returns.” And while 5% yields on Treasury bills have looked very attractive recently, long-term Treasury bonds are down 45% from their 2020 peak.

With inflation still a problem, bond market volatility will likely remain high along with yields, so going heavily into Treasuries and cash isn’t the best move, he said, and investors should consider rotating part of their portfolio into gold and other commodities instead. Dierking shows the relative performance of stocks, bonds, gold and commodities over the past 15 years.

To test this, Dierking created three simulated portfolios: Portfolio #1 holds 100% U.S. Stock Market, Portfolio #2 is 80% U.S. Stock Market and 20% U.S. Bond Market, and Portfolio #3 contains 60% U.S. Stock Market, 20% U.S. Bond Market, 10% Gold, and 10% Commodities.

Berita ini telah kami rangkum agar Anda dapat membacanya dengan cepat. Jika Anda tertarik dengan beritanya, Anda dapat membaca teks lengkapnya di sini. Baca lebih lajut:

 /  🏆 13. in İD
 

Terima kasih atas komentar Anda. Komentar Anda akan dipublikasikan setelah ditinjau.

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

Miner's Drilldown: Weekly technical analysis of the top 10 gold and mining stocksKitco News' contributed commentary features articles and opinions from some of the top experts in the gold industry.
Sumber: KitcoNewsNOW - 🏆 13. / 78 Baca lebih lajut »