No Need for Rebalancing

It's almost two years since I sold my house in Asker. From the proceeds, I paid down all debt on the apartment my wife owns here in Porto, I bought some gold and put the rest into a savings account. The allocations were as follows: 2 parts to pay down debt, 4 parts gold and 1 part cash. No part was allocated to stocks which I found too expensive at the time.

As things stand at the moment, the current distribution is: 3 parts apartment, 4 parts gold and 1 part cash. Very little has changed since the original allocation. There has been little price inflation in consumer goods, so the cash is what it was. The gold price has not moved. Only the apartment has appreciated in price. Stocks have not gone up during this period, so I have lost nothing by staying out of the stock market.

Looking forward one year, I expect the apartment to stay at the current elevated price level. This is due to continued immigration from France, Belgium, Brazil, England and Germany. I expect gold to go up due to global unrest and the fact that the Dow/Gold ratio is above 20. I expect cash to retain its current purchasing power. I expect stocks to go down for the same reason I expect gold to go up.

In short, there's no need for any rebalancing of my portfolio.

British gold sovereign

By Benedetto Pistrucci - Own work, Public Domain, Link