To protect stock and bond portfolios against unexpected financial market tail risks, investors should consider diversifying through commodities like gold, according to Goldman Sachs Research led by analyst Lina Thomas. “Equity-bond portfolios aren’t well protected against stagnant economic growth and elevated inflation in two situations in particular: when global policy uncertainty is elevated (e.g., markets debating the central bank’s ability to contain inflation) and when the economy is hit by a supply shock (such as a sudden interruption in energy supplies),” the report noted. “For example, gold prices jumped in ... (full story)