Tuesday, March 6, 2012

defensive investing advice from Dr. Doom

I would like to share a reading from one financial newspaper who interviewed Dr. Marc Faber a.k.a Dr. Doom. He often appears in the media with a very bearish outlook, hence the nickname. But I for one liked what he had to say about investing during these volatile times. Basically, his advice is very similar to Browne's permanent portfolio, which I have shared previously. Dr. Faber is advising investors to spread their investments into:

25% stocks
25% cash and bonds
25% precious metals
25% real estate

Not a bad asset allocation strategy. Its simple to follow and you only need to rebalance your investments from time to time to compensate for those that have increased or decreased in value. Particularly this time when Philippine stocks are at a record high and gold is still above $1600 an ounce. Perhaps the next several investments you can make would go to cash or real estate. Happy investing!

2 comments:

  1. There are so many comments here that are really interesting and useful to me thanks for sharing a link especially for sharing this blog.

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  2. Theit a dime a dozen That is gloom and doomers.

    ReplyDelete