We Need to Understand What Gold Is... and What Gold Isn’t

I got an email from a TheoTrader, one sharing a video talking about gold and how it’s breaking out against a 60/40 equity and bond portfolio. 

I love it when people share these things because it gets you thinking!

“What are my thoughts?” you ask.

Well, I’ve been talking about the S&P 500’s underperformance against gold for a really long time. So, the idea that it’s beaten the “classic” 60/40 portfolio isn’t anything new to me. 

That flips the question a little bit, making it: Is gold’s outperformance and long-term potential really anything of value to an investor?

The answer - and this might shock you - is an emphatic “No!” and here’s why…