Thursday , 27 February 2020


Asset Allocation

Be Careful! Former Investment "Rules" Nolonger Work – Here’s Why

Investment “rules” that were relevant for a century are obsolete. They were based on a world where economies grew, people’s standard of living increased and outcomes tomorrow better than today. Arguably each of these conditions will not hold in the future but if they don't, neither do the rules of thumb that guided investing last century. These guiding principles developed and worked in a world that that no longer exists but applying them in the future will result in devastating financial outcomes. [Let me explain.] Words: 1261

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

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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