Einhorn and Author Bet on Gold, Cash to Shield Portfolios in Case of Market Crash
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David Einhorn is betting big on gold through the SPDR Gold Trust ETF, likely as a hedge against a possible market crash.
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Einhorn learned an important lesson in the 2008 financial crisis about keeping an eye on the big macro picture, not just bottom-up stock analysis.
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The author keeps 25%+ of his portfolio in cash/FDs at all times as "insurance" against a crash so he can buy stocks cheaply after.
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This cash allocation hurt short-term returns but allowed the author's subscribers to weather past crashes better than the overall market.
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Like Einhorn, the author takes a balanced approach - still picking stocks bottom-up but also watching the macro landscape and adjusting cash levels accordingly.