kyounge1956
Thinks s/he gets paid by the post
- Joined
- Sep 11, 2008
- Messages
- 2,171
Does your portfolio include investments that are there to protect against some specific risk? I'm thinking of such items as gold to hedge against inflation, foreign currencies against a decline in the dollar, and the like. If so, how much of your portfolio is made up of hedges? ISTM that they would have to make up a significant proportion of the whole in order to perform their intended function. Suppose you have 5% of the total in gold—maybe it would go way up in value if there's high inflation, but even if it doubled, how much good would the doubling of only 1/20th of the portfolio do you?