Dec 21st, 2020
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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