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The Gold Conundrum And The Thing About Portfolios
By The Bedokian Portfolio  •  May 11, 2019
After my piece on gold silver ratio was published, one of my acquaintances read it and asked me this question: is gold (or commodities in general) really necessary for The Bedokian Portfolio? As usual, my response is: it depends. Elaborating on my answer, I shall use the Portfolio Visualizer (seems obvious that this place is becoming my go-to site) to carry out a simple back test, with three versions of the US Bedokian Portfolio and benchmarked to the Vanguard 500 Index Investor, representing the US equity market. Bedokian Portfolio 1 (Portfolio 1): The balanced Bedokian Portfolio; 35% equities, 35% REITs, 20% bonds, 5% commodities (gold) and 5% cash. Bedokian Portfolio 2 (Portfolio 2): We shift the 5% component from gold to equities, hence 40% equities, 35% REITs, 20% bonds and 5% cash. Bedokian Portfolio 3 (Portfolio 3): We shift the 5% component from gold to REITs, hence 35% equities, 40%...
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By The Bedokian Portfolio
My first encounter with the financial markets started in the aftermath of the 2008/2009 Global Financial Crisis. Before this, I had no notion of what investment and trading were, although I had learned about economics, business management and accounting back in my university studies. I was a trader when I first started, albeit an amateurish one, and trading was just a side hobby of mine ...
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