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I’m a little amazed by how often referenced articles and posts interact with one another.
Just today, this article on Marc Faber and the 10 Laws of Wealth piece have that interconnected character. Here is the internal Link to the 10 laws article:
There really are no unexpected recommendations in this listing. Rule 4, “Forecasting is for weathermen”, is relevant for the Faber reference. Forecasters do hazardous duty and are challenged to score a 50% accuracy. Actually, weathermen have a much better record than financial wizards. Faber falls into that lower success ratio cohort. Here is the CXO Advisory Group Guru grade ratings:
Based on a large number of predictions over an extended timeframe, Faber’s record is rather unimpressive. He scored at the 45% correct level. CXO asked the following: “Marc Faber: Nabob of Negativism?” My answer is a firm yes to that question.
Faber seems to always recommend a rather large portfolio asset allocation to Gold holdings, sometimes as high as 25%.
If that allocation is scraped from the fixed income portion of the portfolio (equities sort of held constant), overall portfolio returns should not suffer too much, and the portfolio’s standard deviation should be greatly reduced.
I loosely checked the numbers over several timeframes with Gold ranging from the 10% to the 25% portfolio weightings to verify my speculation. The few numbers I made confirmed my perspective. Please note that I do not do Gold in my portfolio.
Comments
He'll be right one of these years....
I’m a little amazed by how often referenced articles and posts interact with one another.
Just today, this article on Marc Faber and the 10 Laws of Wealth piece have that interconnected character. Here is the internal Link to the 10 laws article:
http://www.mutualfundobserver.com/discuss/discussion/28733/these-10-laws-of-wealth-can-help-you-hold-on-to-investment-gains
There really are no unexpected recommendations in this listing. Rule 4, “Forecasting is for weathermen”, is relevant for the Faber reference. Forecasters do hazardous duty and are challenged to score a 50% accuracy. Actually, weathermen have a much better record than financial wizards. Faber falls into that lower success ratio cohort. Here is the CXO Advisory Group Guru grade ratings:
https://www.cxoadvisory.com/gurus/
Based on a large number of predictions over an extended timeframe, Faber’s record is rather unimpressive. He scored at the 45% correct level. CXO asked the following: “Marc Faber: Nabob of Negativism?” My answer is a firm yes to that question.
Faber seems to always recommend a rather large portfolio asset allocation to Gold holdings, sometimes as high as 25%.
If that allocation is scraped from the fixed income portion of the portfolio (equities sort of held constant), overall portfolio returns should not suffer too much, and the portfolio’s standard deviation should be greatly reduced.
I loosely checked the numbers over several timeframes with Gold ranging from the 10% to the 25% portfolio weightings to verify my speculation. The few numbers I made confirmed my perspective. Please note that I do not do Gold in my portfolio.
Best Regards.