Home Capital Investing strategies

Rebalancing portfolios with gold

Goola Warden
Goola Warden5/14/2018 07:30 AM GMT+08  • 6 min read
Rebalancing portfolios with gold
SINGAPORE (May 14): Gold has traditionally been seen as a tactical way to help preserve wealth during market corrections, times of geopolitical stress or persistent US dollar weakness. Although geopolitical tensions have receded in recent months, an unort
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (May 14): Gold has traditionally been seen as a tactical way to help preserve wealth during market corrections, times of geopolitical stress or persistent US dollar weakness. Although geopolitical tensions have receded in recent months, an unorthodox US president continues to unnerve at unexpected moments. While long-term investors are unlikely to manage their portfolios based on a tweet, gold could turn out to be a stabilising force during market volatility.

Now, some portfolio managers are arguing that gold should be an inherent part of portfolios at all times. In a recent blog, George Milling-Stanley, State Street Global Advisors’ head of gold strategy, and Robin Tsui, its exchange-traded fun (ETF) gold specialist, argue that there is a case to be made for gold as a core diversifying asset with a long-term strategic role in multi-asset portfolios.

“The expanding universe of investable asset classes and the relative ease of shifting across different assets mean that multi-asset portfolios today look different from the ‘balanced’ stock and bond funds of the past. Gold’s historically low or negative correlation with most other asset classes argues in favour of a strategic allocation for long-term investors,” Milling-Stanley and Tsui say.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now