Wednesday, January 27, 2016

Investors portfolio allocation to Gold

Investors should rarely have more than 20% of their portfolios in gold and/or gold-related ETFs, and perhaps now they should have at least 10% in gold, with the intention of increasing that exposure when, and only when, they find that their positions are insulated from random market noise and are tidily profitable.

That, of course, shall take time, but the great truth of the markets is simple: "To do more of that which is working and less of that which is not."

So adding to the gold position when it is 7% to 12% profitable seems reasonable and wise to me, for by that point the initial positions will indeed be insulated.

via IBD