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As an individual asset class, gold remains neglected.
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More specifically, we see potential for growth by looking at individual asset classes.
One specific set of assumptions that puts the risk parity portfolio on the efficient frontier is that the individual asset classes are uncorrelated and have identical Sharpe ratios.
This is true both for individual companies and the asset class as a whole.
The benefit to the investor is the ability to access a new asset class without the hassle of picking individual loans.
In recent years institutions have gatecrashed what used to be an asset class catering mainly to super-rich individuals.
Access: It can help democratize the asset class, opening up the playing field to individual investors.
The next step in constructing your portfolio is selecting the funds or individual securities to make up the correct percentages in each asset class.
This means index results for an asset class may not necessarily reflect the performance of individual pieces or works of art," he explains.
"One asset class is gone".
"Equities remain the preferred asset class".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com