Problem: Most portfolios are not fully diversified

  • They just own stocks and bonds
  • What happens if the global economy is slowing (because there’s a lot of debt) and bonds are paying negative real interest...where does money go then?
  • 1970s (1968 to 82...lost decade +)
  • Early 2000s (lost decade)
  • Lost compounding forever and puts portfolio significantly behind goals

My thoughts: Can’t control what politicians do, but owning scarce asset classes like gold, real estate, and the new digital asset class cryptocurrencies (have historically) provided a hedge against government money printing.

 

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