We ranked gold, stocks, real estate and private deals on a 10-point scale. Gold gets a 5. It’s an important part of every portfolio because it’s an inflation hedge and tends to be counter-cyclical with the market. Public stocks get a 7. They have upside, but you carry long-term volatility risk. If you have a long time horizon, or you’ve already built a lot of wealth, stocks are a great place for your money.
Real estate gets an 8.5. It doesn’t have the upside of some other asset classes, but it’s a relatively safe place for money. A single, concentrated private deal with no diversification gets a 4 or 5. No asset class does everything, and how each one ranks for you depends on your situation, how close you are to retirement and what’s already in your portfolio.
Key points
- Gold: 5, as an inflation hedge that tends to be counter-cyclical.
- Public stocks: 7, with upside but long-term volatility risk.
- Real estate: 8.5, relatively safe but with less upside.
- A single undiversified private deal: 4 or 5.
- The right mix depends on your goals, timeline and existing holdings.
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