the marketNZZ/Dylan Grice/11-28-2022
“We think there’s a far better yardstick [than the 60/40 portfolio]. Those of you who know us know that we’re fans of what we call a ‘cockroach portfoli’ which equally weights bonds, equities, gold and cash. By averaging exposure to all broad investment risks (inflation, deflation, long-duration and zero duration), the cockroach portfolio doesn’t depend on any particular macro regime for its returns.”
USAGOLD note: It has also been hypothesized that the cockroach is the most likely earth creature to survive a nuclear armageddon. This is an entertaining and informative article likely to leave more than a few entertaining the notion of cockroaching their portfolios. Dylan Grice is the editor of the investment letter, Popular Delusions. “Maybe it’s not just what you know that’s important in capital preservation,” he concludes, “it’s how well you calibrate what you don’t.”
