Gyroscopic Investing

are not gold, bonds, and stocks positively correlated these days as a result of fed actions?

tooearly wrote: are not gold, bonds, and stocks positively correlated these days as a result of fed actions?

I don't think LTT do correlate positively with stocks at the moment. By and large, one seems to zig whilst the other zags. Last summer gold had a period of clear negative correlation to stocks but that then dissolved. To me it looks as though at any one time either gold or LTT moves counter to stocks but they seem to take turns with that task.

Strange as it may seem, the correlation between the assets in the PP is really not that important.  The portfolio is not designed based on how the assets are correlated, but rather how they react in each of the four economic conditions that the portfolio is designed to handle.  As long as gold reacts strongly to periods of high inflation, LTTs react strongly to periods of deflation, stocks react strongly to periods of prosperity,  and cash does OK in recessions/depressions the correlation between the assets at any given time can essentially be ignored.  It's a very different way to look at diversification.

I do somewhat fear that the Central Banks around the globe have created price bubbles in virtually everything once again (ala 2007/8). 

The only thing that I see coming out ok when it does pop, would be cash.