The Julia La Roche Show
#114 Bob Elliott On Why It's Time For A 10% Gold Allocation
Oct 26, 2023
Bob Elliott, CEO of Unlimited, discusses the macro picture, increasing odds of a recession, and the benefits of allocating 10% of a portfolio to gold. They explore the factors leading to a recession, the importance of considering a wide range of outcomes in financial planning, and the value of learning from investing experts. The speaker expresses gratitude for being on the show and encourages listeners to check out Unlimited Funds' website and follow them on Twitter for more market discussions.
30:06
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Quick takeaways
- The macroeconomic dynamics are aligning for a potential recession in the near future, indicated by factors such as rising interest rates, falling stock prices, weakening labor markets, and softening cyclical sectors.
- Investors should consider diversifying their portfolios with gold and commodities to protect against rising inflation and geopolitical risks, even a modest allocation of 10% to these assets can improve portfolio efficiency and provide benefits during crisis periods.
Deep dives
Expectations of a Recession
Despite previous expectations of a fast recession, unemployment rates have remained steady, leading many to give up on the idea of a recession. However, the dynamics are aligning for a recession in the near future. Factors such as rising long-end interest rates, falling stock prices, weakening cyclical sectors, and softening labor markets all point towards a potential economic downturn. The equity market's high expectations of earnings growth, in contrast to the macroeconomic dynamics, indicate a divergence that suggests a recessionary experience may occur in early 2024.
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