Thats the exact arguement that the majority of our local so called Fin Analysts/Planners pedal. The training they receive is inadequate to handle economic problems caused through a world wide debt implosion. In all honesty the majority of these so called planners/advisers couldn't even spell the word gold. Although I guess over the years recommending to your clients to park a modest% of your investments into physical gold or a gold ETF is not going to get the planner/adviser tickets to the Melbourne Grand Prix or the exclusive marquees on Melbourne Cup day or any other significant event.
Rest assured 1000's of Australians have lost some serious capital based on inadequate recommendations from these so called advisers/planners who's typical response to any market turmoil is just sit tight markets will always recover. My retired father upon my advice swithced to cash about 6 weeks ago - at the time his adviser ( from a major big4 bank ) was pedling the story that everything was fine in the US and they are recovering, or words to that effect. Through discussions with my father I know of a few retired folk that have lost serios $$$ through OS share investments plus investments in stocks like Babcock and Brown - by and large our Fin Planning industry needs a complete overhaul and any investor paying big $$$ for typical advice such as "sit tight markets always recover" needs to cancel their arrangement with that type of adviser/planner immediately.
You only have to look at a 10 year chart of the gold etf ( or since its inception ) or say Newcrest vs the All ords to get the idea of how to best hedge downside risk.
