7

Alternative investments

There are a number of asset classes other than cash, bonds and equities that you might consider as part of your wealth plan. In this chapter I’ll explain the main types and whether or not I recommend their inclusion in your portfolio.

Gold

Not recommended in a multi-asset portfolio held for the long term because its expected return does not cover its risk as a portfolio asset.

Gold has been a store of value for thousands of years and has as much emotional appeal as it does potential for investment. Some investors view gold as the ultimate protection against rampant inflation and corrupt or prolifigate governments, with its appeal and, thus, value rising as confidence in governments’ economic policies declines. In ...

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