The rationale behind such a strategy is that over the long - term gold can provide
a decent hedge against inflation and offer some protection for your portfolio in turbulent economic and political times.
Not exact matches
This is the reason I've been using phrases like «
decent hedge», «sporadic
hedge», or «imperfect
hedge», when describing how stocks can
hedge against inflation.
I also suspect Japanese property could be a potentially
decent currency
hedge (& even a
hedge against a run - away fiscal /
inflation scenario), and it's a pretty compelling property market in its own right — so it might be an attractive alternative to other large cap sectors.
If, in the future,
inflation does pick up, then real estate should be a reasonably
decent hedge against that, particularly versus the stock market.