Mathieu Sollier’s Post

Global volatility and hopes of a soft landing have increased the demand for gold, sending its spot price to an all time high. However, its safe haven S-curve nature highlights that its price level is driven by speculation as opposed to bonds that pay coupons, or equities which strongly derive their performance from earnings. According to the graph below, this results in gold having similar volatility to US and developed market equities, but with significantly less return. This reiterates that its long-term value in portfolios are limited and that understanding the factors behind its price movements are more effective in unpacking investor sentiment. Chart source: J.P. Morgan Asset Management #Commodities #DFM #GlobalVolatility #ChartOfTheWeek

How does a strategic allocation to gold serve as a potential hedge in disparate macroeconomic environments and through extreme events? Learn why the First Eagle Investments Global Value team believes gold's differentiated risk-return characteristics can provide a source of resilience. https://hubs.li/Q02-PLqX0

Gold can play a very useful role in an investment portfolio. For most investors, it’s a safe-haven asset and a hedge against a weakening currency. A new book by two experts at BNP Paribas Fortis – Philippe Gijsels, the chief strategist, and Koen De Leus, the chief economist – makes the case that gold will rise from the current price of around $2 375 per ounce to $4 000 per ounce in “the not too distant future”. The authors base this prediction on gold’s power as a hedge against not just inflation but multiple other sources of unpredictability around the world, including geopolitics. Of course, economic forecasts should be taken as points for discussion, rather than predictions of what the future holds. This one is interesting enough to be our #1nvestOneNumber for May. Read more in this review in the Financial Times: https://lnkd.in/dskpdK6W Learn more about our 1nvest Gold ETF here: https://lnkd.in/ej4T5KTw #Gold #IndexInvesting #FinancialTimes #1nvestOneNumber – an interesting, sometimes unexpected, marker of a relevant investing phenomenon. Let us know your data point of the month in the comments.

GOLD! I have always maintained that a balanced multi-asset portfolio should have an allocation into this asset class in a range of between 5-10%. The percentage weight should reflect the manager’s overall views on the macro outlook. As geopolitical risks rise, I have increased the percentage weight of my portfolio in the asset class six fold. This is not a stock or fund recommendation but it may serve to act as a comparator to other instruments in the universe; l chose the Wisdom Tree Physical Gold (PHGP), the physically backed by gold bullions ETF, which is cost effective at 0.39% OCF. This has served to lift the returns on my portfolio handsomely. Hope you find this informative. Please let me know your views in the comments. #investments #multiassets #portfoliomanagement #assetallocation #gold

Looking at the SPDR Gold ETF chart, there’s a generally rising trend over the last five days. This positive movement could be interpreted as investors turning to gold, which is often seen as a safe-haven asset during times of economic uncertainty or when the likelihood of a rate cut becomes less clear. In the Gold Volatility Index chart, a notable increase in volatility is apparent, especially in recent days. This rise in volatility typically indicates heightened investor concerns and more active trading in gold as a response to an unclear monetary policy outlook. Overall, the uptrend in the gold ETF and the jump in the gold volatility index could suggest that investors are seeking stability in gold amidst uncertainty around interest rates. This is in line with traditional market behavior where investors often find gold more attractive when they expect lower returns from bonds due to stable or rising interest rates. #marketing #finance #economy #investing #investment #sustainability #data #climate

One compelling reason to own gold is its role as a diversifier in a portfolio. The benefits of diversification are well-supported by modern portfolio theory, which suggests that spreading investments across lowly-correlated assets can boost overall risk-adjusted returns. Historically, gold has shown a low or sometimes negative correlation with traditional asset classes like equities https://lnkd.in/dCYiW_Ys

Equities and gold provide massive diversification benefits! This is a follow-up to my previous post questioning why so many asset managers and financial advisors have kept gold as an investment alternative from their clients. I guess that roughly 90% of all investors invest in equities (unfortunately, the percentage of investors investing in bonds is also very high, but that is a different story.) While most investors are myopically focused on returns, a reason many of these investors realize inferior risk-adjusted returns, managing risk, at least to me, is the holy grail. In the case of equities and gold, look at the graph below. It shows the worst 20 months for equities since the Great Financial Crisis and the change in the price of gold during those bad months. The price of gold rose in 15(!) out of the 20 worst months for equities since the Great Financial Crises. The price gain averaged 2.1% measured over all those 20 months. In this article written for the Blokland Smart Multi-Asset Fund newsletter, I dive deep into the huge diversification benefit that can be realized when combining equities and gold. https://lnkd.in/dJRxcjyr It's no surprise that these two assets are the backbone of my portfolio of scarce assets. Deze analyse naar de diversificatievoordelen van de combinatie van aandelen en goud is er natuurlijk ook 'gewoon' in het Nederlands! https://lnkd.in/dEMYGmre

How does a strategic allocation to gold serve as a potential hedge in disparate macroeconomic environments and through extreme events? Learn why the Global Value team believes gold's differentiated risk-return characteristics may provide a source of resilience. https://bit.ly/3xOzq6U

Why Gold Should Be a Part of Your Investment Strategy Gold is not just a safe haven—it's a strategic asset that can enhance your portfolio. Here's why: ✔️ Hedge Against Risks: Gold protects your wealth during inflation, currency fluctuations, and geopolitical uncertainties. ✔️ Portfolio Stability: Its low correlation with equities and bonds offers balance, especially during economic downturns. ✔️ Liquidity and Demand: Gold’s universal demand and ease of trading make it a reliable choice in any market condition. ✔️ Macroeconomic Advantage: Gold thrives in low or negative real interest rate environments, making it an attractive investment. Explore options like ETFs, structured notes with capital protection, or physical gold to diversify your portfolio and secure long-term financial stability. Now is the time to invest smart and align your wealth with future opportunities. #WealthManagement #GoldInvestment #PortfolioDiversification #InvestSmart

Effective portfolio diversification with Gold. Gold is seen as a safe haven asset in times of financial #markets uncertainty, geopolitical tensions or economic stress. Read more here: https://bit.ly/3OasLs8 #investing in #gold #markets with #ubsetf & index funds.