Risk Parity Radio Episode 12: Monthly Rant About Financial Mis-Wisdom (A New Feature!) And An Analysis Of Gold As An Investment
In this episode we analyze gold as an investment using David Stein's 10 Questions to Master Investing, which are:
1. What is it?
2. Is it an investment, a speculation, or a gamble?
3. What is the upside?
4. What is the downside?
5. Who is on the other side of the trade?
6. What is the investment vehicle?
7. What does it take to be successful?
8. Who is getting a cut?
9. How does it impact your portfolio?
10. Should you invest?
We also discuss several bits of financial misinformation I heard on podcasts last month about small-cap value stocks and options for improving traditional 60/40 portfolios.
Links referenced in the episode:
Correlation analysis of small cap value funds versus the total stock market and large cap growth: https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=VTSMX%2C+VIGRX%2C+SLYV&timePeriod=2&tradingDays=60&months=36
Analysis of gold versus the total stock market since 2005: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=6.0&relativeDeviation=0.0&showYield=false&reinvestDividends=true&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=UPRO&symbol2=TMF&symbol3=PFF&symbol4=VGIT&symbol5=VTI&allocation5_2=100&symbol6=BND&symbol7=REET&symbol8=TLT&symbol9=GLD&allocation9_1=100
Portfoliocharts porfolio analyzer (input 100% gold yourself): https://portfoliocharts.com/portfolio/my-portfolio/
Recent Portfolio Charts article about gold, gold miners, drivers and taxes: https://portfoliocharts.com/2020/08/21/metal-money-and-the-measurable-value-of-gold/
Risk parity sample portfolios page: https://www.riskparityradio.com/portfolios