The video below is living proof that CNBC journalists don’t understand gold. While some in the video have gone on to other jobs or have passed on, they have been part of a trend at CNBC of continued ignorance along with other financial advisors as to how gold fits into a diversified portfolio. Most of this ignorance comes from their adherence to a flawed Modern Portfolio Theory that relies on the “risk free” asset, the U.S. dollar. The U.S. dollar is NOT risk free and the fact that gold has risen over 500% in U.S. dollar terms the last 10 years is ignored by those at CNBC and elsewhere.
Watch the video and see for yourself….
As mentioned in the video, I have continually been challenging journalists, CFP’s, CFA’s, Bob Pisani, Nouriel Roubini, Morningstar, Money Magazine (the last two years they have called gold a bubble), NY Times, Harvard Professors, Forbes, the Wall Street Journal etc. etc. on their continued negative articles on gold.
The truth of the matter is, gold is here to stay and should be a part of everyone’s portfolio as it “insures” one’s portfolio’s U.S. dollar risk (U.S. stocks, U.S. corporate bonds, U.S. government bonds, U.S. Treasuries, U.S. CD’s, etc.).
I will continue to expose the flawed logic of those who don’t understand gold’s place in a properly diversified portfolio on my blog. Be sure to sign up for my Newsletter on the home page of Buy Gold and Silver Safely.