Morningstar LTT & Gold analysis

[Kbg]

This is really good analysis I think.

https://www.morningstar.com/articles/98 ... versifiers

https://www.morningstar.com/articles/98 ... versifiers

Those of you familiar with the term risk on/risk off...seems like we are now PP on. :-)

[Smith1776]

Dang, paywall. Based on how they start off the articles look really interesting too.

[yankees60]

Dang, paywall. Based on how they start off the articles look really interesting too.

Both of them opened to the full, complete articles for me.

Vinny

[Smith1776]

Dang, paywall. Based on how they start off the articles look really interesting too.

Both of them opened to the full, complete articles for me.

Vinny

Bizarre. Maybe I hit my free article limit or something...

[europeanwizard]

Bizarre. Maybe I hit my free article limit or something...

Here's text versions:
https://pastebin.com/tFitph7g
https://pastebin.com/ANtsLt0X

By the way, I didn't quite get this bit:

What surprised me was that gold shares comfortably outgained gold bullion. As illustrated in the initial graph, Fidelity Select Gold barely beat the LBMA Gold Price Index over the study period. Thus, the two versions of gold had almost identical correlations and similar cumulative returns. Yet when inserted into the same balanced portfolio, gold equities were considerably better at improving returns.

I really do like his conclusion, though. He has essentially recreated the Permanent Portfolio without the cash part.

[mathjak107]

gold equities are a stock first and play on gold 2nd .

they still are dependent on earnings , strikes , political stuff , management , and of course workers staying healthy . gold is not dependent on any of that .

in 2008 gold shares plunged with stocks while gold was up .


covid could easily take out mine workers sending shares plunging while a new gold shortage drives gold higher .

back in the 1980's there was a south african mine strike ... gold shares plunged for all the south african mines while gold went up from the shortage .

[EdwardjK]

The Morningstar article confirms my comments posted on July 6, 2020, labeled “Alternative HBPP Strategy”.

[Smith1776]

Bizarre. Maybe I hit my free article limit or something...

Here's text versions:
https://pastebin.com/tFitph7g
https://pastebin.com/ANtsLt0X

By the way, I didn't quite get this bit:

What surprised me was that gold shares comfortably outgained gold bullion. As illustrated in the initial graph, Fidelity Select Gold barely beat the LBMA Gold Price Index over the study period. Thus, the two versions of gold had almost identical correlations and similar cumulative returns. Yet when inserted into the same balanced portfolio, gold equities were considerably better at improving returns.

I really do like his conclusion, though. He has essentially recreated the Permanent Portfolio without the cash part.

Ahhhhh thank you!!

[Kbg]

Bizarre. Maybe I hit my free article limit or something...

Here's text versions:
https://pastebin.com/tFitph7g
https://pastebin.com/ANtsLt0X

By the way, I didn't quite get this bit:

What surprised me was that gold shares comfortably outgained gold bullion. As illustrated in the initial graph, Fidelity Select Gold barely beat the LBMA Gold Price Index over the study period. Thus, the two versions of gold had almost identical correlations and similar cumulative returns. Yet when inserted into the same balanced portfolio, gold equities were considerably better at improving returns.

I really do like his conclusion, though. He has essentially recreated the Permanent Portfolio without the cash part.

The author is referencing volatility between the two which has a different impact depending on what option he was analyzing. I thought that observation was one of the most interesting of the articles.

[pp4me]

Dang, paywall. Based on how they start off the articles look really interesting too.

Both of them opened to the full, complete articles for me.

Vinny

Bizarre. Maybe I hit my free article limit or something...

I don't know if it will work on this website but on others, like National Review, when it says I've run out of free articles all I need to do is clear the browser cookies and I'm good to go. Obviously they hope you don't know enough to figure this out.

[Smith1776]

I don't know if it will work on this website but on others, like National Review, when it says I've run out of free articles all I need to do is clear the browser cookies and I'm good to go. Obviously they hope you don't know enough to figure this out.

What I usually do is fire up an alternative browser that I never use, like Firefox.

But here's the weird thing. I just clicked on the links in the OP again with my regular browser and they worked this time. I haven't touched my cookies, cache, history, or anything at all. Double bizarre.