This unique asset hedges when you most need it to and has experienced positive returns over time
Gold is a unique asset. It serves as both a safe haven and a diversifier for equity portfolios. Over time, it has provided a hedge when you need it most-but it also has served as a less correlated source of return when the market has risen. From the beginning of 2000 to the end of 2015, gold's annualized return was 8.5% compared to the S&P 500 Total Return Index's 4.1%.1 There have been four calendar years during this stretch where the S&P 500 had negative performance, 2000, 2001, 2002 and 2008. Gold's average annual return during those years was 6.7% compared to an average loss of -20.0% for the S&P 500 Total Return Index.
Like gold, equity allocations that track factors such as growth, value, dividend yield, and minimum volatility have proven… Read More …
