Bond ETF or Gold Strategy to Protect your Stocks Portfolio?
Best Bond ETF and Best Gold ETF Strategy — Full analysis:
https://bankeronwheels.com/bond-etf-gold-etf-comparison/
Below we investigate the best Bond ETF and Gold ETF Portfolio Protection Strategy based on your needs.
#1 YOU ALREADY INVEST IN INDEX FUNDS
“It takes a huge investment in introspection to learn that the thirty or more hours spent “studying” the news last month neither had any predictive ability during your activities of that month nor did it impact your current knowledge of the world.”
- Nassim Nicholas Taleb, Fooled by Randomness: The Hidden Role of Chance in Life and in the MarketsTweet
Why you are already ahead of most investors:
- First and foremost, you know that Index Funds are the best way to get exposure to Stocks which generate passive income (excellent piece on this here)
- Perhaps, you follow Stoic philosophy or did meaningful research and understand there are lots of aspects in investing (and life!) you have no control over (despite what most investors think). You don’t ignore the role of randomness in life
- Crucially, you know deep down that most investors (including Professional Investors) waste their time picking stocks. Stock picking has almost no influence over long term returns (or you read serious research that allocation to the right asset class determines over 90% of investing performance)
- Finally, you may have heard that Einstein famously said compound interest is the 8th wonder of the world. You understand that people who bet on single name stocks won’t be able to outperform in the long term. They may also quickly lose money. Because of the power of compound returns Warren Buffett follows two rules: “№1: Never lose money. Rule №2: Never forget rule №1″
The true reason why Warren Buffett keeps wining
Einstein famously said compound interest is the 8th wonder of the world. You understand that people who bet on single name stocks won’t be able to outperform in the long term. They may also quickly lose money. As a result they are incurring a massive opportunity cost. Einstein concluded: “He who understands it, earns it … he who doesn’t … pays it”
Buffett’s first rule is based on that concept. “My wealth has come from a combination of living in America, some lucky genes, and compound interest.”
- Warren BuffettTweet
Influence things you actually control — don’t waste time on things where you only have an illusion of control
#2 … BUT YOU WANT TO PROTECT YOUR STOCKS PORTFOLIO …
You know that Stocks outperform (and always go up) over the long term e.g. 10+ years. However, you are also aware that it’s not bullet proof when your time horizon is shorter (e.g. 5 years). Because of shorter time horizon you are looking for Stocks Portfolio Protection. As illustrated here adding a Safe Haven asset (like Gold or Bonds) can not only protect your portfolio but also increase returns
#3 … AND THAT MEANS YOU WANT TO UNDERSTAND BOND ETF AND GOLD ETF PROTECTION STRATEGIES
BOND ETF GUIDE
BEST BOND ETF GUIDE
Click on the link below to understand the types of Bonds (Fixed Income) that can provide diversification benefits to your Stocks Portfolio
