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Protecting Your Portfolio From Market Volatility

The government agency charged with protecting investors, the U.S. Securities and Exchange Commission, offers this sound advice to all investors:

By including asset categories with investment returns that move up and down under different market conditions within a portfolio, an investor can protect against significant losses. Historically, the returns of the three major asset categories have not moved up and down at the same time. Market conditions that cause one asset category to do well often cause another asset category to have average or poor returns. By investing in more than one asset category, you'll reduce the risk that you'll lose money and your portfolio's overall investment returns will have a smoother ride. If one asset category's investment return falls, you'll be in a position to counteract your losses in that asset category with better investment returns in another asset category.[1]

This is why so many experts recommend gold as part of a diversified portfolio. As the World Gold Council explains, “[m]any investors are drawn to gold's role as a diversifier – due to its low correlation to most mainstream assets – and as a hedge against systemic risk and strong stock market pullbacks.”[2]

For example, hedge fund managers like Ray Dalio, the billionaire founder of Bridgewater Associates, insist upon a diversified portfolio which includes gold. Speaking to CNBC, Mr. Dalio stated that “[y]ou can immunize yourself from the [boom and bust] cycle by holding a balanced portfolio of assets.”[3]

And it’s not just investors who include gold in their portfolios. Gold is an integral asset for central banks seeking a safe, liquid asset for their reserves.[4]

The case for gold is even stronger with the growing concerns the economy may be moving towards another recession. Indeed, nearly half of the country’s CFOs are fearing a recession in 2019. And more than 80% believe that a recession will begin by the end of 2020.[5] During our last recession, the Dow Jones fell more than 50% in just 18 months.[6] But gold thrived gaining more than 200% during its bull run.

Investors owe it to themselves and their families to learn how they can diversify with gold. You can learn how easy Goldline makes it easy to buy gold and silver by calling today at 800-963-9798 or requesting your free investor kit here. At Goldline, you’ll enjoy the benefits of working with a trusted industry leader that has been helping investors acquire gold for more than fifty years.


[1] U.S. SEC, Beginners’ Guide to Asset Allocation, Diversification and Rebalancing, 8/28/09.

[2] “The relevance of gold as a strategic asset,” WGC, 1/23/18.

[3] “Ray Dalio says this investment strategy can help you weather a financial crisis,” CNBC, 12/11/18.

[4] “Gold is back. That's a worrying sign,” Bloomberg, 11/6/18.

[5] “Nearly half of US CFOs fear a 2019 recession,” CNN, 12/12/18.

[6] “Stock Market Crash of 2008,” The Balance, 11/6/18.

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