Best #investing strategy, according to Harry #Browne:
* ¼ in **precious metals** (protection against _inflation_)
* ¼ in **stocks** (performance during _bullish_ times)
* ¼ in **bonds** (performance during _bearish_ times)
* ¼ in **cash** (protection against _deflation_)
(Disclaimer: don't trust him, don't trust me; quite old: eg #crypto didn't even exist back then.)
@fidel
Who knows 🤷 🙂
I do think that _some_ #crypto is a must in a balanced portfolio, yes. On the other hand, these pretty round allocations always seem whimsical and irrational to me. I guess one should weigh all components according to their relative risk, volatility and performance…?
I don't know, it's like saying: “want a balanced training regime? make sure you run 10 km, cycle 10 km and swim 10 km each week!“ 😆
@tripu Of course these round allocations are not the optimum strategy, it's an oversimplification so people get the main idea: diversifying reduces risk. Those who want to dive deeper can tweak the allocations towards their risk tolerance (e.g. more crypto and stocks for higher risk but also higher upside).
@tripu So updated version?
1/5 precious metals
1/5 stocks
1/5 bonds
1/5 cash
1/5 crypto