There is an asset class the investment industry calls “alternatives”.
Alternatives are assets that are not correlated to interest rates, the bond markets or the stock market. Most non-correlated strategies that fall into the alternative category are usually “managed funds”: a managed futures fund (a trading strategy behind the SMP 500 or commodities), a long-short fund (a mutual fund that’s holding some long stocks, some short stocks) and so on. The non-correlated asset that Doug talks about in this podcast—an asset that’s at the forefront of the market so far this year—is gold and precious metals.
You may be wondering: why is gold non-correlated?
Usually, instead of correlating to the stock market, gold finds its foothold in other financial trends you might not expect. For instance, inflation is good for gold, uncertainty is good for gold, even negative interest rates can be good for gold. Gold stocks have increased in 2016, and considering the instability of the world market today, it’s no wonder.
At Fabian Wealth Strategies, ETFs for gold and other precious metals fall into two broad categories: Physical ETFs and Mining ETFs. These categories differ greatly from each other; the volatility difference between physical and mining ETFs is vast. If you’re building an investment portfolio and you’re thinking about using gold, it’s important that you understand the differences between physical and mining ETFs before you make a decision.
Is gold a good investment for you, personally? If so, which category is best for your investment portfolio, physical or mining? How much or how little should you invest in gold? As an investor, how can you use gold to respond to the volatile, sideways market of today?
Don’t try to answer important questions like these on your own—we can help you answer these investment questions, and others! Call Fabian Wealth Strategies today and set up a personal consultation; it may just be the best investment decision you make this year.
FABIAN WEALTH STRATEGIES | 888-300-3684 | askdoug(at)dougfabian(dot)com