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Good tutorial on Gold as a hedge

Posted: Sun Oct 24, 2021 4:11 am
by Hal
And at the same time validates HB's thesis.
https://www.youtube.com/watch?v=Z3F4DJWquL0

Re: Good tutorial on Gold as a hedge

Posted: Tue Jan 18, 2022 2:22 pm
by seajay
US 10 year real annualized % total returns by decades

Code: Select all

Decade   72-79    1980’s    1990’s    2000’s    2010’s

stock         -2          26           14          -3            11
gold	        10.5      -7.2           -6          11             1
						
Average   4.25       9.4            4            4             6
In two of the last 5 decades poor returns from stocks saw modest/reasonable gains from gold
In the other three cases that flipped around

When drawing income (retirement) a bad/negative total return decade has income eating capital, potentially drawing down the core capital to critically low levels. It's generally better to have more consistent real gains such as the average of both stock/gold rather than either alone.