Only people who had a meaningful position in oil and gold, have offset the losses they had elsewhere

Whichever way it is, the war is raging and we are seeing the impact on the markets. Moscow is saying we will cut off gas supply to Europe; America is saying we will take Russian oil out of the global energy mix. This war is really on top of investors’ minds. Till we have clarity on that, is what we are seeing in the markets going to continue?

Well the damage to markets has been done unevenly. If you own Russian stocks, they are next to nothing at the present time. Will they ever be worth anything? Who knows! But collectively, if you look at European markets, they are all down 10-15%. So the damage has been very considerable. 

The only sector that I can say which has really benefited from all this but that is not good economically, especially not for the poor people, is the commodity sector, the agricultural sector and oil and more recently, precious metals and precious metals stocks.

So if you were invested in precious metals, you are partially hedged. I have always argued for the last 30 years that you need to own some gold, silver and platinum as an insurance against the political problems and chaos in the world. 

But if you own only 5% of your assets in gold and 95% of your assets in stocks, the hedge was too small. Only people who had a meaningful position in oil and gold, have offset the losses they had elsewhere.

- Source, Verve Times