Should GOLD allocation in your portfolio go up ?

Today’s Daily Byte

Nifty opened with a slight gap up and reached nearly 24,200 before falling back and closing at -0.14%. This marked the fifth consecutive day of upward movement in the market. Over the last two sessions, there was an expectation of a mild correction, which materialized towards the end of the week. Investors tend to avoid keeping extended positions open over the weekend, leading to some nervousness and profit-taking, especially among those who have been long in the past few days, particularly in leveraged positions.

The story of the day revolves around the weekly options ending, with discussions and rumors about potential actions from SEBI (Securities and Exchange Board of India). SEBI has hinted at . . . .

Reading Time : 4 Minutes

Gold allocation in your portfolio should go up

A significant trend in the financial world is the shift in central bank holdings of gold. In the 1970s, gold made up 65% to 75% of international reserves held by central banks. However, this percentage dropped during the 1980s and 1990s, hitting a low in the mid-2000s at around 12%.

Recently, there has been a steady increase in gold reserves, now in the higher teens. This shift reflects a growing caution among central banks about relying solely on US debt as their primary reserve. . . . .

Reading Time : 4 Minutes

Can smallcaps run further?

A very interesting chart recently came to light, showing the ratio of the CNX Small Cap Index to gold. This chart helps us understand how the value of small cap stocks compares to gold over time.

From 2004 to 2008, this ratio went from nearly 1 to about 5.5 before collapsing back to 1. Currently, the ratio stands at around 2.8 to 2.9.

This tells us that small caps have been much more expensive in the past, and they have the potential to rise further. . . . . .

Reading Time : 3 Minutes