A new golden rule BY CHUCK JAFFE, MARKETWATCH
It has long been a rule of thumb that typical investors should have 5-10% of their portfolios in gold. But watching gold’s swoon on Monday had to make you wonder: Really?
Leave it up to the financial gurus to pollute the golden rule with things about money. I really got a kick out of this one. It seems Mr. Jaffe has a very short term memory. Yeah the price of gold dropped significantly on Monday but year over year it is still much higher than it was ten years ago. It is up about 300% while the stock market has gained a whopping 15% over the same period.
But of course Mr. Jaffe makes his fortune convincing you to buy and sell stocks so I certainly understand his motivation for these words.