A portfolio of 20% each in stocks, bonds, gold, cash, and real estate has the highest Sharpe ratio, returns ~9% annually since 1971, and suffers minimal drawdowns (worst -12% in 2022). It gives up only 2% annual return vs. stocks while drastically reducing volatility and emotional stress, providing a durable wealth-building solution.
A portfolio of 20% each in stocks, bonds, gold, cash, and real estate has the highest Sharpe ratio, returns ~9% annually since 1971, and suffers minimal drawdowns (worst -12% in 2022). It gives up only 2% annual return vs. stocks while drastically reducing volatility and emotional stress, providing a durable wealth-building solution.
Healthcare and consumer staples have been performing well. If you like these defensive sectors, you are implicitly bearish on the rest of the market. They offer relative safety in a weakening economy.
Healthcare and consumer staples have been performing well. If you like these defensive sectors, you are implicitly bearish on the rest of the market. They offer relative safety in a weakening economy.