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Strategies & Market Trends : Value Investing
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To: petal who wrote (65588)12/5/2020 8:53:17 AM
From: RetiredNow1 Recommendation

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E_K_S

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I think bonds in a portfolio under these conditions is a sucker's bet. When bonds have a negative real yield, I switch to gold. I've been at around 85% value stocks, small and mid cap, plus gold since Aug-Sept, and have made the best returns in many, many years. I think the fundamentals for gold right now with real negative yields all over the world in bonds, make it a good bet to hedge your value stocks over the next year. What I have done for myself is gone long small and mid cap value with overweight in my portfolio, and replaced my typical bond holdings with gold. Why gold instead of stocks like utilities or preferred or some other bond like stock? Because bond-like stocks are really just value plays by another name. Gold has been acting like a real hedge against stocks for several months now, and I believe it will continue to do so until bonds lose enough value to once again carry a positive real yield. That's my thesis for now, until the facts on the ground change.
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