It’s Wall Street vs. China - Have You Thought About How Your Portfolio Is Positioned?

Wealthy American investors should welcome a rational conversation on the real benefit of gold as foreigners understand, particularly in China, Asia, the Mideast, Russia and most of the developing world. Gold is beautifully uncorrelated to the dollar. This is tough to argue against as not even Wall Street’s biggest bull would suggest the dollar will go on in its current supreme state forever – after all, nearly 100 countries are now trading outside of the dollar, a tell-tale sign when a sole reserve currency is in decay as we have seen on numerous occasions in global finance already.

And if the extraordinary benefit of gold as dollar diversification were not enough for Americans, an added benefit of gold is that gold is also attractively uncorrelated to stocks and bonds in the modern era, noteworthy in itself with those widely owned asset classes at historic highs. This article discusses asset and portfolio allocation and why gold is still a viable asset class in our current economic environment.