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Gold has offered barely positive returns over long time periods.

• pembrook 2y ago
  A financial asset with barely positive returns but uncorrelated to other financial assets is actually an extremely valuable thing. Heck, if you can find a basket of 4-5 uncorrelated return streams that only deliver 1% per year after inflation, you could start a hedge fund. Non-correlation = reduced volatility = the ability to apply massive leverage to increase that 1% return.
  • kgwgk 2y ago
    > Non-correlation = reduced volatility If the volatility of each uncorrelated thing is high you may need to put together many more than 4-5 to bring it down.
  • jgalt212 2y ago
    only if such assets have very low / no vol. With any level of leverage such a strategy brings along a significant risk of gambler's ruin.