The investor’s playbook
The path for investors is clear. Equity exposure should be reduced because the gap between market perception and economic reality will close quickly once the new recession becomes apparent. Cash allocations should be increased to reduce overall portfolio volatility, and to give investors flexibility and optionality once some of the political and economic uncertainty begins to clear. Allocations to gold, silver and mining shares should be at least 10% of investor portfolios, both as an inflation hedge and a hedge against declining confidence in central bank currencies.
For longer-term allocations, investors should consider alternatives in private equity and venture capital, including companies involved in artificial intelligence, natural resources and energy. Treasury notes in the five to 10-year maturity sector offer attractive capital gains potential as nominal interest rate declines continue.
Investors interested in learning more about the analysis behind these recommendations, and the close linkage between the pandemic and economic growth, might consider my new book, The New Great Depression: Winners and Losers in a Post-Pandemic World, which will be released on 12 January and is available for pre-order today.
Edit: And wait, there's more https://www.youtube.com/watch?v=iiATDMHU7gc
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Aussie GoldSmithPP - 25% PMGOLD, 75% VDCO