tripu

Best #investing strategy, according to Harry #Browne:

  • ¼ in precious metals (protection against inflation)
  • ¼ in stocks (performance during bullish times)
  • ¼ in bonds (performance during bearish times)
  • ¼ in cash (protection against deflation)

(Disclaimer: don’t trust him, don’t trust me; quite old: eg #crypto didn’t even exist back then.)

Dec 23, 2021 at 4:53pmWeb
Show threadFidel RamosDec 23, 2021
@tripu So updated version?
1/5 precious metals
1/5 stocks
1/5 bonds
1/5 cash
1/5 crypto
Show threadtripuDec 23, 2021

@fidel

Who knows 🤷 🙂

I do think that some #crypto is a must in a balanced portfolio, yes. On the other hand, these pretty round allocations always seem whimsical and irrational to me. I guess one should weigh all components according to their relative risk, volatility and performance…?

I don’t know, it’s like saying: “want a balanced training regime? make sure you run 10 km, cycle 10 km and swim 10 km each week!“ 😆

Show threadFidel RamosDec 23, 2021
@tripu Of course these round allocations are not the optimum strategy, it's an oversimplification so people get the main idea: diversifying reduces risk. Those who want to dive deeper can tweak the allocations towards their risk tolerance (e.g. more crypto and stocks for higher risk but also higher upside).