From a WSJ article today on catastrophe portfolios among the rich, the thing that caught my eye is the one-third (!) in gold. Assuming that’s the case, these portfolios are already having their catastrophe, what with gold being off 12% from its early September peak. Very zen to bring the catastrophe inside one’s portfolio.
According to an article in Reuters, some of the most fearful rich are creating “catastrophe portfolios.” Ivan Adamovich of the Swiss bank Wegelin said that the catastrophe portfolio is one-third gold, one-third blue chips and one-third debt in safe, developed countries (whatever those are).