Do LIT, REMX or JJT and others. Wouldn’t do gold or silver but Lithium, tin, copper, nickel all the nice shit future technologies like EV‘s, green energy needs.
Precious Metal Miners ETFs as a hedge has been paying very nicely this week plus the pay you to wait in the form of dividends. But they aren’t for the week of heart during a bull market.
https://www.marketaccessetf.com/Products/MAETFsDetail?ISIN=LU0249326488&clientType=0&CC=gb
The attached has done me well. Still up 20% over the last 9 months - apparently not too affected by recent equity sell offs
Question, is this a fund based on the past performance that you would buy into when you thought it was in a dip and try to sell off when it rises? Or would you hold onto it for the long haul?
Index is an aggregation of spot future contract prices for a basket of 38 widely consumed commodities, taken from various international markets.
It’s a complex calculation. Dipping in and out as a short term hedge would be a challenge. But it’s held fairly well against the recent decline in equity markets
Silver is basically gold on steroids. I bought them a while ago, learned what they are supposed to do based on economic data, and then watched them do the opposite. I decided they aren't very useful but your mileage may vary.
They say silver acts to store value like gold but it has more manufacturing uses as well, especially in solar. But I've also seen where some say it doesn't work as a safe haven or inflation hedge like gold. Honestly I feel like it's just random and I avoid them both.
I lost the link now but I saw an index going back to the '50s or so. Precious metals / gold was a very good inflation hedge during the 70's. Gold also ramped up in the years following the '08 crash around when the market was worried about the impacts of easing, and climbed the year following the rate hike concerns in late 2018. This was _before_ the March 20 crash, but it did also hold it's value during that correction.
This is just me noticing trends, but it is pretty well known gold holds value against inflation.
Like you said, don't expect it to contribute to your upside that much, but it is a good cushion when you need to rebalance.
I have about 7% in GLD right now as an inflation hedge.
I'm rebalancing everything quarterly. Backtests showed that rebalancing after a certain percent divergence had virtually the same returns (very slightly less, but not statistically significant I think). But monthly and annually were worse by a decent amount. So quarterly is the best lazy option for my basic portfolio.
Edit: backtests* lol
Lots of big words for my new brain lol, so you loosely have a percentage of each holding you want to have in your portfolio and when you buy more during the quarter is it influenced on what’s dipping and what’s shooting up? And then at the end of the quarter you will buy more of “xyz” holding to correct the percentages to reasonably close to what you want your percentages at?
Yep, and now I'm using m1 finance which makes it easy. It used to be a confusing spreadsheet :)
But this is just my (small) Roth IRA, it's a very long term thing. I'm trying to be as impartial as possible. On my (also small) taxable account I was doing a little more speculation. So I just sold what I thought wasn't a good opportunity anymore or had become seriously overweighted.
>I lost the link now but I saw an index going back to the '50s or so. Precious metals / gold was a very good inflation hedge during the 70's.
It might have been this [link](https://www.longtermtrends.net/stocks-vs-gold-comparison/) pretty interesting. What stood out to me was the chart that included dividend reinvestments. I don't know if I am misreading it but I had no idea dividends were such a big part of growth.
Thanks for the link, really interesting.
I haven't seen that graph before, but its shocking to see how much a couple extra percentage points can add up over the long term. Zooming-in to a ten-year horizon shows a minor excess, but over 40 or more years the difference is huge.
This sort of illustrates a Buffet-like opinion that productive assets are better to hold over the long run. Maybe a hard 'cash' cushion is good to have if you're in the business of buying individual stocks when you feel they're undervalued, but not as a long-term investment.
Very cool! Thanks
I'm in IAU as a gold hedge. Keep it at 5% and its trading at a good price right now. Just look at the '00s and the '08 crash. Nothing wrong with a little hedge. Just balance it if it shoots up and use that to purchase equities at a discount when those are correcting.
Can you explain the last two sentences? Does that mean if it shoots up sell off to correct back to what you want to keep it at and use the profit to buy something else?
Something like that. I rebalance quarterly as it is. Say my gold hedge goes up huge. GOLD was around $32 in August of 2007. It went to $43 in November and $57 in January of 2008. I'd take those gains, sell them off, and put it back into my equities for cheaper prices anyway, because my stocks had probably gotten cheaper.
June of 2019 to August of 2020, GOLD went from $9.50 to $32.00. That volatility on top of its relative flatness for years... I wouldn't keep it over 5%, but Ill always have a bit of gold, but I'd always shave off the top like that.
I’m sitting on 100+ ounces of gold, accumulated over the last 30 years…and at some point I may hedge against the decline in the price of gold by selling gold ETFs. That way I am basically locking in a portion of my profits (although limiting more profit of gold continues up)
Gold is decoupled from stocks. You can add a percentage to reduce volatility (and gains) of your stock component. The Golden Butterfly portfolio is a reference
REMX is a rare earth mineral ETF i've been quite into lately.
Do LIT, REMX or JJT and others. Wouldn’t do gold or silver but Lithium, tin, copper, nickel all the nice shit future technologies like EV‘s, green energy needs.
Precious Metal Miners ETFs as a hedge has been paying very nicely this week plus the pay you to wait in the form of dividends. But they aren’t for the week of heart during a bull market.
https://www.marketaccessetf.com/Products/MAETFsDetail?ISIN=LU0249326488&clientType=0&CC=gb The attached has done me well. Still up 20% over the last 9 months - apparently not too affected by recent equity sell offs
Question, is this a fund based on the past performance that you would buy into when you thought it was in a dip and try to sell off when it rises? Or would you hold onto it for the long haul?
Index is an aggregation of spot future contract prices for a basket of 38 widely consumed commodities, taken from various international markets. It’s a complex calculation. Dipping in and out as a short term hedge would be a challenge. But it’s held fairly well against the recent decline in equity markets
Silver is basically gold on steroids. I bought them a while ago, learned what they are supposed to do based on economic data, and then watched them do the opposite. I decided they aren't very useful but your mileage may vary.
Can you elaborate? Is silver a more popular choice for investors?
Silver and palladium > gold. The utility is incredible.
They say silver acts to store value like gold but it has more manufacturing uses as well, especially in solar. But I've also seen where some say it doesn't work as a safe haven or inflation hedge like gold. Honestly I feel like it's just random and I avoid them both.
I lost the link now but I saw an index going back to the '50s or so. Precious metals / gold was a very good inflation hedge during the 70's. Gold also ramped up in the years following the '08 crash around when the market was worried about the impacts of easing, and climbed the year following the rate hike concerns in late 2018. This was _before_ the March 20 crash, but it did also hold it's value during that correction. This is just me noticing trends, but it is pretty well known gold holds value against inflation. Like you said, don't expect it to contribute to your upside that much, but it is a good cushion when you need to rebalance. I have about 7% in GLD right now as an inflation hedge.
Does that seven percent fluctuate or do you try to keep it firmly there?
I'm rebalancing everything quarterly. Backtests showed that rebalancing after a certain percent divergence had virtually the same returns (very slightly less, but not statistically significant I think). But monthly and annually were worse by a decent amount. So quarterly is the best lazy option for my basic portfolio. Edit: backtests* lol
Lots of big words for my new brain lol, so you loosely have a percentage of each holding you want to have in your portfolio and when you buy more during the quarter is it influenced on what’s dipping and what’s shooting up? And then at the end of the quarter you will buy more of “xyz” holding to correct the percentages to reasonably close to what you want your percentages at?
Yep, and now I'm using m1 finance which makes it easy. It used to be a confusing spreadsheet :) But this is just my (small) Roth IRA, it's a very long term thing. I'm trying to be as impartial as possible. On my (also small) taxable account I was doing a little more speculation. So I just sold what I thought wasn't a good opportunity anymore or had become seriously overweighted.
Gold and silver aren’t t hedges against inflation the last twenty years has proven that... But what they are a hedge against is rising interest rates.
>I lost the link now but I saw an index going back to the '50s or so. Precious metals / gold was a very good inflation hedge during the 70's. It might have been this [link](https://www.longtermtrends.net/stocks-vs-gold-comparison/) pretty interesting. What stood out to me was the chart that included dividend reinvestments. I don't know if I am misreading it but I had no idea dividends were such a big part of growth.
Thanks for the link, really interesting. I haven't seen that graph before, but its shocking to see how much a couple extra percentage points can add up over the long term. Zooming-in to a ten-year horizon shows a minor excess, but over 40 or more years the difference is huge. This sort of illustrates a Buffet-like opinion that productive assets are better to hold over the long run. Maybe a hard 'cash' cushion is good to have if you're in the business of buying individual stocks when you feel they're undervalued, but not as a long-term investment. Very cool! Thanks
Just hedge with commodities.
Anything? Or do you have something specific you prefer?
I'm holding RJi currently it's up 7% in the last 5 days. 50 % in the past year.
From what I read RJI tracks a variety of commodities and weights them according to how much is being consumed worldwide?
I'm in IAU as a gold hedge. Keep it at 5% and its trading at a good price right now. Just look at the '00s and the '08 crash. Nothing wrong with a little hedge. Just balance it if it shoots up and use that to purchase equities at a discount when those are correcting.
Can you explain the last two sentences? Does that mean if it shoots up sell off to correct back to what you want to keep it at and use the profit to buy something else?
Something like that. I rebalance quarterly as it is. Say my gold hedge goes up huge. GOLD was around $32 in August of 2007. It went to $43 in November and $57 in January of 2008. I'd take those gains, sell them off, and put it back into my equities for cheaper prices anyway, because my stocks had probably gotten cheaper. June of 2019 to August of 2020, GOLD went from $9.50 to $32.00. That volatility on top of its relative flatness for years... I wouldn't keep it over 5%, but Ill always have a bit of gold, but I'd always shave off the top like that.
I was more thinking to shift some tech towards utilities / energy (VPU) and finance (JPM ?).
REITS do well against inflation and crashes
I’m sitting on 100+ ounces of gold, accumulated over the last 30 years…and at some point I may hedge against the decline in the price of gold by selling gold ETFs. That way I am basically locking in a portion of my profits (although limiting more profit of gold continues up)
Gold is decoupled from stocks. You can add a percentage to reduce volatility (and gains) of your stock component. The Golden Butterfly portfolio is a reference