Investors can optimize their portfolios in challenging times by ensuring their portfolios are properly diversified. SUPPLIEDIn 2022, investors face an unprecedented combination of economic headwinds: high inflation, high government debt, rising central bank rates, quantitative tightening of the money supply and equities searching for more realistic price discovery.
“But we’re not talking about the outdated idea of diversification — a 60/40 allocation between stocks and bonds that was devised a half-century ago. Investors need to look more deeply than that to achieve diversification, especially now.” de Sousa also sees value in alternative investment classes, some of which can provide an income stream.
only 205,000 tonnes of gold have been mined through all of history and only 3,561 tonnes were mined during all of 2021. With increases in the U.S. money supply amounting to trillions of dollars, the relative scarcity of gold makes it an excellent hedge against monetary inflation.Article content