QuietGrowth notes on investing No. 4

There is still a debate among the industry leaders whether the market will bounce back sharply or there will be an extended period of pain. Many are following the wait-and-watch policy. Below are few short notes on investing, markets and economics. These are our recent observations.

Many ask: “With massive quantitative easing, will the US dollar collapse?”

We believe that the collapse of the US dollar is highly unlikely though not impossible. It’s extremely difficult to predict this event. Right now, the US dollar is the ultimate destination for flight to quality.

Many ask: “During market turmoil, should we replace our equity holdings with gold?”

Gold remains a flight-to-safety asset. However, your long-term investment portfolio should continue to be highly-diversified. Amount of exposure to gold or other precious metals depends on your personal circumstances.

We want to mention that QuietGrowth portfolios continue to have gold as one of the asset classes.

Price of a barrel of crude oil drops below US$20 for the first time since 2002 — an important price point. With gradual tech improvements in renewables and nuclear, it isn’t easy for oil to regain its old prices around $70. Geopolitics will alter. We at QuietGrowth are monitoring.

Many, especially young investors, do not understand risk adequately. The risk of recession, job loss and increasing life expectancy. The risk of events such as virus outbreak and war. Financial advice plays a vital role to encourage diversified, long-term investing.

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