ReSolve’s Riffs on Gold vs Treasury as Disaster Protection (EP.20)

This is “ReSolve’s Riffs” – live on Youtube every Friday afternoon to debate the most relevant investment topics of the day.

The recent pandemic-led selloff has once again highlighted the importance of having ballast in portfolios to deal with extreme equity volatility – and ultimately protect investors from disastrous outcomes. This week we discussed:

• Whether bonds can continue to provide protection given rock-bottom yields
• If gold will outshine other safe-haven assets in the current environment
• The tradeoffs between sovereigns and the shiny metal
• The current economic environment and the possibility of a paradigm shift

The team also explored how both bonds and gold should fit into a risk parity framework where investors do not necessarily have to make a choice but can rather benefit from owning either one – or both – at the right time.

Thanks for watching and see you next week.