Rose twice as much as stocks? Asset allocation strategy to reduce losses in my account

Summary

Song Jae-gyeong, CEO of Dimension Investment Advisory, explains asset allocation strategies to reduce portfolio losses. He frames gold as a critical insurance asset that is now buyable after a sharp correction, driven by falling real rates, a weaker dollar, and rising US debt. He also recommends gold mining ETFs for leveraged upside and dividends, copper for long-term industrial demand, and KOSPI 200 equal-weight ETFs as a diversification tool amid a market rotation.

• Gold corrected from ~$5,600 to $4,000/oz and is now rebounding, presenting a long-term buying opportunity for portfolio insurance.
• Falling real interest rates, a weakening US dollar, and eroding trust in US Treasuries support higher gold prices.
• Central banks are diversifying reserves from US debt into gold, adding structural demand.
• Gold miners ETFs like GDX offer leveraged gold exposure, rising earnings, and dividend payments.
• Copper benefits from long-term electrification and semiconductor demand against constrained supply.
• KOSPI 200 equal-weight ETFs have shown better resilience and capture rotation, reducing concentration in mega-caps.
• Retail investors should diversify across asset classes rather than concentrating in a few stocks.
• A classic 60/40 stock/bond portfolio can be expanded with real assets like gold and commodities.