Investing in defensive assets: Cash, bonds & gold
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What are defensive assets and why are they important?
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How do cash, bonds, and gold function as defensive assets?
Hey there, here's a quick note. This podcast contains general financial advice only. That means it's not specific to you, your needs, goals or objectives so don't act on the information until you've spoken with your financial advisor. You'll find our full disclosure, disclaimer and link to our financial services guide in the show notes. Kate, welcome to this episode of the Australian Finance Podcast.
It is good to be back, Owen.
It is indeed. Today, we're talking about the one half of the portfolio, which is often neglected on our show, and it shouldn't have taken this long for us to get an expert on to talk about this side of the portfolio, which is so essential to long-term wealth creation. Do you invest in bonds?
I do, through ETFs and in my super fund. Okay. And how about gold? Possibly in my Superfund, but not directly through ETFs, though I do have some gold jewelry.
Okay, cool. Well, today we're going to be talking about some of these asset classes, and we're joined by Chris Baraki, founder of Stockspot.
Why should long-term investors consider defensive assets?
How are you going, mate?
Very well. Thanks for having me on, guys.
We actually had a video of yours shared in our Facebook community before Christmas, and everyone was talking about it and saying how good it was. So we thought, well, why not get you on the show to take us through it and talk a bit more about these defensive asset classes. Obviously, as the founder of StockSpot, It's, you know, I'm going to say, I'm going to, I don't know if this is the right characterization, but the way I think about what you guys do is that what we were talking about as robo-advice, but it's actually like structured portfolios. It's to help people get started and stay invested throughout different market environments for the long term. Have I got that correct?
Yeah, I mean, it's a pretty good characterization. We just try and simplify the process for people that don't want to be actively managing their portfolio. And I mean, there's plenty of people out there that want to take a lot of involvement in the process. There's also people that just want to make sure their money is invested sensibly and they don't have to pay attention. you know, that's really the group that we see using StockSpot, you know, then they don't have to worry about picking the right assets, the right ETFs, rebalancing, managing tax and all these sorts of things, you know, and hopefully they can get a great return over the long run. You know, I personally believe, you know, doing it this way can give them a better return than most of the professionals out there.
What are the main types of defensive asset investments?
And I think that's really the, yeah, the secret source of automated investing.
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Chapters
8 chapters
1
What are defensive assets and why are they important?
0:00–1:24
2
How do cash, bonds, and gold function as defensive assets?
1:24–2:20
3
Why should long-term investors consider defensive assets?
2:20–3:34
4
What are the main types of defensive asset investments?
3:34–6:30
5
How do defensive assets help during market volatility?
6:30–9:49
6
What should younger investors know about defensive assets?
9:49–12:42
7
How much allocation to defensive assets should one have?
12:42–14:54
8
What are effective ways to invest in gold and bonds?
14:54–34:04
Speakers
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