for a traditional 60/40 investment portfolio.

Kamal531

Fidelity Investment Director: Bitcoin is well-suited for a traditional 60/40 investment portfolio.

Fidelity Investments' Global Macro Director, Jurrien Timmer, conducted an in-depth analysis of Bitcoin and gold as potential value stores in investment portfolios. Timmer suggests that Bitcoin is well-suited for the "alts" (alternatives) category within a traditional 60/40 investment portfolio (60% stocks, 40% bonds). He notes that Bitcoin's positive correlation with the S&P 500 index is decreasing, while it exhibits a negative correlation with the U.S. dollar and treasury bonds. Interestingly, Bitcoin remains uncorrelated with gold, challenging the notion that they serve similar functions in portfolios. Bitcoin's volatility is approximately four times that of gold. Assuming a fourfold increase in the gold position to match Bitcoin, the returns over the past five years are remarkably similar. Timmer proposes a potential allocation strategy. A combination of 2% gold and 1% Bitcoin, representing 5% of the "value store" position in an alternative 60/40 portfolio, could effectively equate to a 6% position, balancing risk and return.

977Iti

Bitcoin is not suitable for those of us who are risk-averse.

Jatin255

I'm not interested in such suggestions at all; I prefer other things.

Kahn332

It might be worth looking into such an investment portfolio.

Kalkin995

Indeed, that could be a viable combination.