If you want to maximize yield you should pay attention to the main hedge to the DJI = GOLD
When GOLD/DJI down --> Better to have money DJI (stockmarket)
When GOLD/DJI up --> Better to have money on spot GOLD (ETF, physical 5-10% of Yield buy/sell)
How u choose to distribute that ratio is up to you ofc. If you have all the eggs in one basket and are wrong well then you're missing out on a lot of %, however, when investing in GOLD, you're also investing in something that will store your value no matter what so far going back 3k years in the history of mankind.
Doing different allocations based on DIV data ---> 50/50, 70/30, 80/20, 90/10 is highly recommended. (gold/DJI) (DJI/gold)
(Physical gold is yet to be priced in fiat... There will come a day when paper gold crumbles down --> physical gold price goes up tremendously)
in Total Gold is up 3559% since 1971
in Total DJI is up 2900% since 1971
Which means that you would've made money either way but this is not about making money but instead a way of showing how Yield simply transfers from one market to another in Recessions/Growth periods
I personally see a higher probability in higher yields in the gold market in the future based on this monthly data but if we see a breakdown below the current support we can just adjust the allocation ratio once again based on the reading of the data. If the Div's doesnt hold --> we're going to pour more money in the DJI (stockmarket)
Have a great day! :=)
/ThefreedomMatrix
When GOLD/DJI down --> Better to have money DJI (stockmarket)
When GOLD/DJI up --> Better to have money on spot GOLD (ETF, physical 5-10% of Yield buy/sell)
How u choose to distribute that ratio is up to you ofc. If you have all the eggs in one basket and are wrong well then you're missing out on a lot of %, however, when investing in GOLD, you're also investing in something that will store your value no matter what so far going back 3k years in the history of mankind.
Doing different allocations based on DIV data ---> 50/50, 70/30, 80/20, 90/10 is highly recommended. (gold/DJI) (DJI/gold)
(Physical gold is yet to be priced in fiat... There will come a day when paper gold crumbles down --> physical gold price goes up tremendously)
in Total Gold is up 3559% since 1971
in Total DJI is up 2900% since 1971
Which means that you would've made money either way but this is not about making money but instead a way of showing how Yield simply transfers from one market to another in Recessions/Growth periods
I personally see a higher probability in higher yields in the gold market in the future based on this monthly data but if we see a breakdown below the current support we can just adjust the allocation ratio once again based on the reading of the data. If the Div's doesnt hold --> we're going to pour more money in the DJI (stockmarket)
Have a great day! :=)
/ThefreedomMatrix
Comment:
There is alot of things that matters when allocating obv.. Politically, Monetary police, P/E P/S in the stockmarket, Debt, upcoming wars, what is happening in the world, bonds, rate hikes, real estate, etc...
Think of it like this: There is tons of ways the stockmarket could end in chaos, tons of unpredictable ways, tons of variables outside the stockmarket that will have an effect on the stockmarket... These "ways" have been brewing since 1970's and the bubbles has yet not popped, getting bigger each year.
Gold has value on its own, protects against everything above + only one VERY UNREALISTIC way the gold market can end in chaos
No matter how you look at it apart from this data u should allocate some of your money to either spot gold/physical in your portfolio before the data suggest otherwise
Think of it like this: There is tons of ways the stockmarket could end in chaos, tons of unpredictable ways, tons of variables outside the stockmarket that will have an effect on the stockmarket... These "ways" have been brewing since 1970's and the bubbles has yet not popped, getting bigger each year.
Gold has value on its own, protects against everything above + only one VERY UNREALISTIC way the gold market can end in chaos
No matter how you look at it apart from this data u should allocate some of your money to either spot gold/physical in your portfolio before the data suggest otherwise
Comment:
Gold costs 1000+USD to mine from the ground so it has value based on this alone.
It has served as sound money for thousands of years. The chances of this are obv. astronomical / we defeat the central banks / nwo, one world currency takes over
Be reminded of that.
!in 1980 the dow to gold ratio was 1/1 ---> Gold is overvalued when it only takes 1 oz to buy the DJI! right now the ratio is at 0.05 ---> there could be a major move ahead of us should the data of the history stay true in the future modern world