3-5% are superfluous, then you can leave it alone.🤷🏼♂️
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•1Semana
@All-in-or-nothing explain, so I'm interested.
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1Semana
@All-in-or-nothing I would also be interested in the explanation, that's why I asked
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•1Semana
@All-in-or-nothing I'm actually with you, but isn't it the case that from 5% gold there is a positive, noticeable influence on vola? But I would also go for 8-10
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•@jkb92 and @nitroxx I strongly assume that everyone who invests in gold has a certain objective in mind. In my case, and in my view this is also the most plausible approach for an allocation to gold, it is to reduce the maxDD of my portfolio. Since you can replicate this in your own backtests as well as in countless studies, a 3-5% allocation to gold has virtually no significant effect on a portfolio that otherwise consists purely of equities (and yes, this also includes ETFs on indices that only contain equities).
The minimum allocation for gold should be around 8-18%, if this is intended to reduce the maxDD and taking into account other key figures (Sharpe ratio etc.). From an allocation of 15%, however, you should think about other, uncorrelated asset classes (actually there is only BTC😉) with a historically higher return profile, because otherwise you run the risk of diluting the return profile of your own portfolio too much.
Overall, however, the other portfolio allocation (focus in the selection of equities or ETFs, etc.) is of course also important.
I hope that's enough for you as a reasonably well-founded answer to a "sensible" target allocation for gold in the portfolio.😉
The minimum allocation for gold should be around 8-18%, if this is intended to reduce the maxDD and taking into account other key figures (Sharpe ratio etc.). From an allocation of 15%, however, you should think about other, uncorrelated asset classes (actually there is only BTC😉) with a historically higher return profile, because otherwise you run the risk of diluting the return profile of your own portfolio too much.
Overall, however, the other portfolio allocation (focus in the selection of equities or ETFs, etc.) is of course also important.
I hope that's enough for you as a reasonably well-founded answer to a "sensible" target allocation for gold in the portfolio.😉
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•@Nofan and what exactly is funny about a factual approach?
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