Asset Allocation

OWN GOLD AS A LONG-TERM PORTFOLIO DIVERSIFIER

OWN GOLD AS A LONG-TERM PORTFOLIO DIVERSIFIER

STRATEGAS ANALYZED GOLD’S CORRELATION TO SEVEN ASSET CLASSES: LARGE CAP, SMALL CAP, INTERNATIONAL EQUITY, EMERGING EQUITY, AGGREGATE BOND, HIGH YIELD, OIL, U.S. DOLLAR

• HIGHER POSITIVE CORRELATIONS WITH ALL BUT ONE ASSET CLASS OVER LAST YEAR
• MUCH LOWER CORRELATIONS WITH ALL ASSET CLASSES OVER PREVIOUS TEN YEARS
• NEGATIVE CORRELATION WITH THE U.S. DOLLAR LAST ONE YEAR AND TEN YEAR PERIODS

Watch the related WEALTHTRACK episode.

CONSIDER SOME “HOMEBODY” INVESTMENTS

CONSIDER SOME “HOMEBODY” INVESTMENTS

Rosenberg thesis: Transitioning permanently to more frugal “homebody” economy

“HOMEBODY” BENEFICIARIES include:

• Home OfficeTechnologies (cloud)
• Telecommunications
• Utilities
• Food Suppliers
• Diversifiers include:
• – Gold
• – Treasuries

Watch the related WEALTHTRACK episode.

STAY CAUTIOUS

STAY CAUTIOUS

• No one knows how the global recession will play out
• Profound changes occurring
• Time to be prudent and cautious

Watch the related WEALTHTRACK episode.

HAVE AT LEAST ONE ASSET THAT IS NOT CORRELATED TO THE STOCK MARKET

HAVE AT LEAST ONE ASSET THAT IS NOT CORRELATED TO THE STOCK MARKET

ADD SOME GOLD TO YOUR PORTFOLIO

LARGE AND ESTABLISHED GOLD ETFS:
• SPDR GOLD SHARES ETF (GLD)
• ISHARES GOLD TRUST ETF (IAU)

CASH AND CASH EQUIVALENTS

• 3 MONTH TREASURY BILLS AND OTHER TREASURY SECURITIES
• CAN PURCHASE TREASURY SECURITIES DIRECTLY FROM U.S. TREASURY AT TREASURYDIRECT.GOV

Watch the related WEALTHTRACK episode.

CHECK YOUR ALLOCATION TO STOCKS

CHECK YOUR ALLOCATION TO STOCKS

• A big risk for pre-retirees and retirees is a major decline in retirement funds
• Lack of time to make it up
• More than one- third of baby boomers’ 401(k)s: +70% in stocks
• Almost one-tenth of baby boomers’ 401(k)s:100% in stocks

Watch the related WEALTHTRACK episode.