Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FYI: All signs point to gold. The safe haven metal took a hit as bond rates jumped in the fourth-quarter of 2016, but has been trending higher despite the rise in real interest rates. Gold bulls should take note of how gold prices have behaved in relation to long-term treasury bonds because they appear to be behaving differently than they have in the past. Regards, Ted https://www.barrons.com/articles/commodities-now-all-roads-lead-to-gold-1524762275
History suggests that commodity-related investments may at least partially hedge the risk of inflation. It also suggests that exposure to metals, agricultural products, oil and gas, and other hard assets can help to diversify portfolios of stocks and bonds. So why do commodities account, on average, for just 2%–4% of pension funds and nonprofit investment portfolios?1 And why does Vanguard include them in some multi-asset funds but not others?
Findings:
It may take a substantial allocation to commodities to enhance the risk-adjusted returns of a balanced portfolio. Our third graph shows the performance of four hypothetical balanced portfolios over the last 30 years and how they might have been affected by the introduction of a 10% stake in commodities. Only one portfolio—the 90% stock/10% bond portfolio, adjusted to become 81% stocks/9% bonds/10% commodities—would have recorded improved risk-adjusted returns, and the improvement would have been marginal. An allocation to commodities would have increased the volatility of a bond-heavy portfolio and would have reduced returns across the board.
What Vanguard Funds hold commodities?
Only two Vanguard funds, both specialty offerings, tend to invest in commodity futures. As of December 31, 2017, our Alternative Strategies Fund had a target commodities allocation of 20% of net assets, and our Managed Payout Fund had less than 5% of assets invested in commodity futures
@Ted: This is obviously Off-Topic so why is it posted under "Fund Discussions"? Responding to your post in another thread, the problem with the Katzenjammer kids is that you are under the delusion that you are the captain.
@Ted- Pure baloney. Neither of your links even mentions a fund. By that very shaky "logic" virtually any subject could be posted under "Fund Discussions" on the premise that some fund somewhere might have some interest in, or exposure to, almost anything.
@Old _Joe: You need to learn how to read ! From the article, "Commodities Now: All Roads Lead To Gold?" Quote: "On Thursday, the dollar’s strength weighed on gold prices. Gold spot futures declined 0.3% to about $1,318 per troy ounce. The PowerShares DB US Dollar Index Bullish Fund (UUP) has gained 0.4%, while the SPDR Gold Trust (GLD) is down about 0.4%. Meanwhile U.S. government debt yields fell as fresh buying pushed rates to under 3% Thursday morning."
@Ted, I think it would be helpful if when you post articles hyping one investment or another you also shared at the same time your own personal view on the investment. While those of us who follow the board religiously may know that you are not actually recommending gold here, I fear many who come across something like this may assume it’s your recommendation.
So, you might explain (along with the verbatim quotation) what percentage of your holdings are in gold and whether you’ve added to or decreased the position recently. What funds you like in particular. And what particular points made by the author you agree or disagree with.
Personally, I maintain a small exposure to gold/gold funds (less than 5%) - but I view it very much a “wild card” or “roll of the dice” - possibly useful for diversification. I’ve watched it over enough years to know it to be extremely volatile and unpredictable. I could never in good conscience recommend it to most investors.
Thanks.
Yes - I saw the question mark in the article title. I also saw this in the article: “Gold’s outlook looks rosy.”
Comments
researchcommentary/article/InvComVIPSCommodityInvestments
So, you might explain (along with the verbatim quotation) what percentage of your holdings are in gold and whether you’ve added to or decreased the position recently. What funds you like in particular. And what particular points made by the author you agree or disagree with.
Personally, I maintain a small exposure to gold/gold funds (less than 5%) - but I view it very much a “wild card” or “roll of the dice” - possibly useful for diversification. I’ve watched it over enough years to know it to be extremely volatile and unpredictable. I could never in good conscience recommend it to most investors.
Thanks.
Yes - I saw the question mark in the article title. I also saw this in the article: “Gold’s outlook looks rosy.”