Top Plans for Brokerages
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Vanguard ETF: |  |
7.4%* |
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Diversified Core: | |
8.1%* |
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Six Core Asset ETFs: | |
7.3%* |
*:5 Yr Annualized Return of TAA Moderate Portfolio
Articles on GDAFX
- 5 Assets for a Global Banking Crisis?
08/17/2011
"Don’t interpret last week’s volatility as merely a reaction to S&P’s downgrade of US Treasury debt, according to Doubleline founder and chief investment officer Jeffrey Gundlach. Investors are actually fearful of a global banking crisis, he said, because many countries face a perilous choice – defaulting on their sovereign debt or inflating their way out of trouble." Reported in the following article
Gundlach - 'The Cusp of a Global Banking Panic' advisorperspectives.com
So if there is another Lehman like default from Euro zone, what are the similar and different positions one can take in a retirement investing portfolio such as in their 401k or IRA accounts?Similar to 2008 Lehman crisis, the following asset will do well:- Treasury bonds (TLT) (IEF): it is no different this time, even after S&P's downgrade of the U.S. debt rating, the U.S. treasuries remain the world's most liquid safe haven.
Unlike 2008, the following assets will be resilient- Gold (GLD): with the U.S. dollar's rapid devaluation as well as stimulus policies adopted by governments around the world, gold remains the only one asset that people can trust as a hard currency.
- Other commodities (DBC): though its underlying fundamental is not as strong as gold, commodities will be a good hedge for both sides: if the crisis does not happen, the demand of commodities from emerging markets and other economies will be strong. If the crisis does happen, the U.S. policy to devalue the dollar through more stimulus or other tools will still make commodities relatively strong relative to U.S. dollars.
- U.S. total bonds (AGG) (BND): in general, US coporate balance sheets are exceptionally strong and coupled with government treasury bonds' strength, this asset class will withstand the crisis better this time.
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