Asked by Anonymous
Asked on 05 Dec 2019
Is it a vital part of an All-Weather portfolio? or are there other types of investments that i should consider?
Gold and other commodities are an integral part of the All Weather strategy. These assets have a negative correlation with other investments like equities and bonds, which in turn provides diversification benefits in the portfolio. This combination of assets in the All Weather portfolio will then be able to provide stable returns throughout the economic cycle. Asset allocation in a typical All Weather portfolio is as follows:
55% Fixed income (10% inflation-linked treasuries, 30% long duration bonds, 15% 3-7yr duration bonds)
30% Equity (Broad US market ETF, e.g. S&P 500, total stock market ETF, etc)
15% Commodities (Gold, and/or broad commodity tracking ETF)
You can also explore two variants of the strategy, All Weather - Aggressive and the All Weather - Unleveraged for different risk appetites on the Kristal.AI platform. The aggressive version is only available to accredited investors due to the complexity of underlying assets.
Hope this is helpful! Happy investing!