azanon wrote:Dulocracy wrote:You are correct. It is gold both recommend against, sorry. Commodities, Rick, Taylor, and a slew of other authors recommend against on this site. Larry is the outsider on the commodity issue, but he recommends this category only as insurance, as he has elaborated on this website.
The point remains, however, that the drag on the portfolio is significant enough during every time period that I have tried, that I do not think commodities or gold's benefit to the portfolio outweighs the drag created. Further, the benefit appears to be more for those who may not buy and hold for longer periods of time.
So for Gold then, the applicable expert (among many others) is in the thread title; Mr. Ray Dalio. #1 Hedge fund manager, 15.6 billion net worth and, in short, an elite investing resume. By all means, just downgrade me to nothing more than a messenger that understands Dalio's reasoning for using gold in a portfolio.
I didn't have the time to go back an re-read what was already said in this thread, but I'm still at a loss for what drag you're talking about. Go to portfoliocharts.com or portfolioanalyzer.com, add a nice chuck of gold, and watch 1. your portfolio return go up 2. your standard deviation go down 3. Sharpe and Sortino ratio go up. Those are all good things.
I have no idea what you are talking about when you seem to indicate that I am attacking you. I am not. As far as Mr. Dalio, good for him. He makes a lot of money selling a lot of people products. That does not mean he is correct. I think he is wrong. I backtested the portfolio and found over multiple periods of time that it reduced return. I apologize if my short answer offended you. I am a new father and a senior partner of a law firm, so time is a bit on the short side lately.