Portfolio Manager High On Cash, Suggests Bitcoin For Diversification
Chris DeMuth Jr., a portfolio manager at Rangeley Capital, writing in prominent investor portal Seeking Alpha, suggests investors optimize their cash holdings and put 10% of it in bitcoin. DeMuth began his explanation with an overview of the current investing environment. He noted the stock market is very pricey. Stock Market Pricey. The stock market price is currently about 119% of the GDP. The annual average total returns from that level is less than 1% historically. The cyclically adjusted price-to-earnings ratio is around 26, which is 58% higher than average, which is 92% as high as....
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With the stock markets being subject to high volatility these days, investors around the world are looking at different options to diversify their portfolio. While some of them have taken a keen interest in Bitcoin, most of the investors are looking at cash as their preferred solution. This may seem odd to some people, but it makes a ton of sense at the same time as well. What Makes Cash So Appealing To Investors? Based on statistics provided by Bank of America Merrill Lynch, roughly US$208 billion of inflows can be attributed to cash and money market funds. In this day and age of....
Bulls vs. Bears. The long history of two animals battling against each other on Wall Street has now paved its way into the crypto markets. After a long reign, the bulls have taken a step back and the bears have taken over. That said, most of us are aware that the market conditions right now aren’t the most trader-friendly; stable coins have been destabilized and there’s a bloodbath with red candlesticks taking dips. So, what could help a trader or an investor at this point? The simple answer is diversification, or the golden rule of never putting all your eggs in one basket. Striking the....
One practice that is used by investors around the world is diversification. Diversification simply means not putting all of our eggs into one basket. Smart money managers spread the total amount of investment capital across as wide a range of investment styles and asset classes as possible. Diversifying your investment portfolio is especially important for investments that are being used for your retirement. Over the last few years a large number of people were fortunate enough to buy in when Bitcoin was priced at $35 and sell when it reached $1000. This profit can of course be used for....
Research has found overexposure to a few 'blue chip' DeFi tokens is an issue for indexes. New research suggests that indexes based on decentralized finance tokens lack diversification which is less than ideal for advanced investors seeking to mitigate risk.Indexes are a very popular way to get broad exposure to a market without the hassle of researching and buying individual assets. With the explosion in DeFi protocols and related tokens this year, a number of indexes have been launched.Analytics provider DeFi Pulse was one of the first to launch their own index in mid-September at the....
Bitcoin's correlation with traditional markets could "erode" its "diversification value over time."