Dr. Alan O'Sullivan

We've had COVID, but we don't capture COVID here.

So when I play this chart, look for the periods when the S&P 500 collapses during that stressed environment.

the two energy shocks in the 1970s, 1973 and 1979, during the Iranian Revolution.

So I'm going to play the chart and watch gold.

So the 73 gold spikes up, as you would expect, again in 79, provides that level of protection in terms of downturn.

Now we had stable returns pretty much 1890s, coming up to the tech wreck,

We see a big sell-off in gold.

And there you see that big sharp drawdown in 2008.

And gold acting as that hedge.

I'm going to play it again.

There's this negative correlation where one asset is going up, the other asset is going down.

Not all the time, by the way.

Not all the time.

But during the stressed environment is what's key.

I want you to focus on 2008.

Look at this big drawdown.

Gold held pretty stable.

For me, gold has acted as the Dennis Rodman in the portfolio.

Gold has done the dirty work, but this sporting analogy is not just relevant to soccer, football, or basketball.

What about rugby?