Blogger has served us well, and yet it reached its limitations some time ago. While the basic business model of the robo-adviser stays unchanged, I could see several competitive risks to the standalone robo model. In the aggregate holdings of a global portfolio, gold cannot be anything but a miniscule weight from a portfolio viewpoint. It could have gone a lot lower, although Greed Index and the CNN Money Fear had dropped to levels where the marketplace had bounced before.
We can see this by using 's calculator to discover that XRE (enter the symbol ) over the previous twelve years has a 0.53 correlation with XIU (enter ) and a -0.05 correlation with XBB (enter ), the iShares comprehensive Canadian bond ETF The numbers vary somewhat for different time periods but XRE has had consistently low correlation with XIU and XBB i.e. away from the 1.0 mark which indicates ETF Model Portfolios the entire perfect correlation that we don't want.
The main reason behind the stratospheric prices has been called the Great Sphere of Money of China and it's rolled into Canadian real estate. Factset recently documented how residential property prices have skyrocketed in Toronto and Vancouver while the remainder of Canada have been level as Mainland Chinese cash has been buying in those two cities. Predicated on the narratives that have surfaced, the deluge of money has made the Vancouver and Toronto real estate markets a Wild West (chart annotations below are mine).