Gold?
Hi, I have been given Β£10,000 which I have put into a stocks and shares ISA. It has a pie with Invesco QQQ Nasdaq 100 Acc, Vanguard FTSE All World High Dividend Yield Acc and Invesco FTSE All World Acc in it. It is a short term investment 5-10 years as I am very old
. My question is should I add a small Gold ETC to hedge against a possible / likely market correction? Btw my only aim here is to try and beat inflation. Thanks
Given your age and short-term investment horizon (5-10 years), as well as your primary goal of beating inflation, adding a small allocation to gold could be a reasonable hedge against market volatility and inflation.
Gold has historically performed well during market downturns, high inflation, and periods of economic uncertainty. It tends to have a low/negative correlation with equities, meaning it can help stabilize your portfolio during corrections.
The true answer is no one knows.
I would probably have said a multi asset fund might be an idea, as the diversity should in theory act as a hedge against the unknown.
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