Why Gold Should Be in Every Diversification Portfolio!

By iSectors Chief Investment Officer, Chuck Self on December 11, 2018

Gold makes the ugly beautiful. – Molière

And this market has been ugly. Quarter to date (December 7, 2018), the Standard & Poor’s 500 Total Return has been down 9.56%. Many investors are overweighted corporate bonds in their fixed income portfolios. The Bloomberg Barclays US Corporate Bond Total Return has declined 1.06%. Even the broad Dow Jones Commodity Index is down 2.93%!

Gold has been one of the most beautiful investments in recent months. So far this quarter, the king of precious metals is up 4.72%. Our partners, Aberdeen Standard Investments, a leader in bullion exchange traded funds (ETF), believe that investors had been too bearish on gold and was underpriced relative to other investments. With just a moderate wage increase picture, gold will continue to perform well if the Federal Reserve slows down or terminates its interest rate tightening activities.

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