Gyroscopic Investing

On considering a PP that could be used in multiple countries, came up with this concept for critique by the forum.

25% Cash in your local currency, 25% each Gold, International Shares & Intermediate bonds.
Thoughts?

PS: What would happen if you used International LT bonds hedged to your local currency? eg:https://www.betashares.com.au/fund/beta ... cy-hedged/

Edit: This video prompted the variation on Smiths 2 fund PP now I discovered International Gov't Bond ETF's exist in Australia
https://www.youtube.com/watch?v=FAZjlxWNszw

I think the bond allocation is the stickiest issue. I have no problem with the other three. The reserve currency deal is a game changer. So far, in times of trouble, money flows into US Treasuries. Can that be said of any other sovereign bonds?

What surprised me is how well this allocation did with some of the PIGS countries....
It appears International Bonds do better than local bonds.

Local currency hedge have to be well taken into account, IMHO. See EUR/USD in the recent months. While its not the wildest swing ever seen, it definitely is a game changer in a way that brings extra unknown variable in the PP equation set - nothing more, nothing less ... Regarding bonds - I would agree that US Treasuries are the main target during market turmoils, also with diversified international bonds you get almost always decent percent of laggards and credit risk too...

Good point I Shrugged & Vil,

Replacing the bonds with US LT's doesn't look too bad