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19/11/21
06:49
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Originally posted by cplatfor:
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l am thinking it's a good time to diversify again away from equity. Bonds (typical) are only likely to fall when interest rates go up. AAA cash is actually likely to rise however the fall in sp over the last decade is not inspiring. corporate high interest bonds were crushed last March (no hedge at all). gold miners (not gold) was crushed in the March covid fall. interestingly last time l checked the large LIC's ARG and AFI held very little cash, still close to 100% in equities. there are 2 options 1) cash 2) GOLD. although GOLD is unlikely to keep up with inflation you are saying (??) it is more likely to match inflation than cash... the cons is that in a major world event they actually close markets. still l am thinking of GOLD. wonder if anyone else is thinking of GOLD as a hedge against a bear market and serious market melt down?? I am getting up in age and can cope with a market tumble on divs now but some hedging is bit more than prudent. actually l past that age a decade ago.
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Interest rates are on the way up, and that's bad news for gold, or maybe I should say more bad news. The USD is also on the way up. I was kind of thinking 3 month bonds, low risk and an increasing return.