The article discusses the traditional 60/40 portfolio, which combines equities and bonds to manage risk and promote growth. However, with inflation and high interest rates becoming concerns, it may be necessary to reconsider the 60/40 portfolio. The inclusion of bitcoin in the portfolio can increase returns, with higher allocations to bitcoin leading to greater profitability. The article provides data showing the potential returns of various bitcoin allocations in a 60/40 portfolio. The risk-off properties of bitcoin, such as its decentralized nature, make it a valuable addition to a diversified portfolio. The analysis did not include tech stocks like Tesla and NVIDIA due to these reasons, and bitcoin's historical performance has surpassed that of gold.
- Content Editor ( coindesk.com )
- 2024-11-14
What Does a 60/40 Portfolio Look Like if We Replace Bonds With Bitcoin, a Lot Better: Van Straten