Warren Buffet buying Gold, selling Banks

Gold seems to move towards an integral part of any diversified portfolio. Ray Dalio‘s All Weather portfolio has 7.5% in each Gold and Commodities (blue line).
Deni Memic New Gen portfolio suggestion (red line): Increase Gold to 10%, add 5% of ^VIX, remove Commodities (ceteris paribus) and you get an out-performance compared to All Weather portfolio and total US stock market, measured from 2007 onward (CAGR, Sharpe ratio, Sortino ratio, max drawdown all on more favorable levels).

Deni Memic

Academic Program Chair Finance at Higher Colleges of Technology - UAE