Real assets and gold protect portfolios
The guest argued that portfolios must include a significant allocation to real assets, including gold, to ensure positive returns across different decades.
The argument
Historically, portfolios with dedicated allocations to real assets like gold, REITs, TIPS, and farmland have shown unique resilience, such as maintaining positive returns during difficult inflationary decades like the 1970s.
The thesis, stress-tested
✓ What validates it
- ✓Gold and copper continuing to sustain and break new all-time highs
- ✓Positive decade-over-decade real returns in diversified real asset portfolios during inflationary cycles
▸ Risks discussed
- ▸Gold can experience long periods of flat or negative real returns when real interest rates are high
- ▸Real assets can underperform financial assets during disinflationary growth periods
Hear it yourself
"Number three is no exposure to real assets. And so that includes not just commodities and equities like gold, but also things like REITs, things like TIPS, farmland investing."
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