More than any other question, people always ask me about gold. For some reason, people love gold even though it pays no dividend. You have to pay to store it and it hardly ever makes anybody money.
Here’s a fun fact: if you take all the gold ever mined in the history of time, it would only comprise a cube approximately 65 feet on a side. So, there’s not all that much to go around.
I liked gold when the Federal Reserve was printing money following the 2008 collapse, because it acted like a 3rd currency. Once they stopped stimulating a few years ago, it lost the allure for me.
However, that might be changing. If President Trump gets his way and is able to borrow a trillion dollars for infrastructure spending, inflation will explode. That’s what gold is really for…a counter balance for inflation.
My only concern is that the bond market is not buying it and the bond market is usually right. Maybe it’s just the realization that it will be months and possibly years before these inflationary policies are enacted or they just don’t believe it will be successful. In any case, gold seems a reasonable risk at these levels…as a small portion of your portfolio.
Given the increased volatility and added uncertainty, retirees and those close to retirement must keep to their retirement master plan. If you don’t have one or if yours needs an update, get on it before it’s too late.
Always manage risk so you are getting the best returns based on what you need, but with the least risk possible. Or what I like to call “invest for need, not for greed”™. It’s what we try to do for our clients every day.
Now is the time to review, not only your portfolio, but your overall master plan. Things have changed and it’s time to Trump up your portfolio!
As always, feel free to contact me with any comments or questions.