Hello World, I'll keep this post very short as the proof is is "in the pudding." Take a look at the five year percent ROI on Bitcoin vs. the S&P 500. For an asset that returns ~865% at its 2019 low point, which is over 8 times the return on the S&P 500, it may just make sense to keep 1-5% of your portfolio in Bitcoin to offset volatility or compliment the returns afforded to you by equity investments.
While this post is about Bitcoin, I can't help but question why someone would want to own/buy bonds right now... Unless the nominal interest rates will go negative in the United States, yields only have one direction they can go--up! When yields go up, the prices of already-issued bonds on the market (at lower interest rates/yields) become worth less because now there are new bonds available that yield more. I just don't see how bonds could go up from here let alone hold their value. To the soon to be retiree, maybe you can get the best of the world of traditional finance and the new emergence of asset classes like crypto by allocating just a small percentage of your portfolio to Bitcoin. Doing so would provide more diversification and, given historical trends, allow the gains from the small Bitcoin allocation to supplement the returns of the entire portfolio at a scale that would be meaningful.
These are just my thoughts--I'm not a financial advisor and this is not investment advice.
While this post is about Bitcoin, I can't help but question why someone would want to own/buy bonds right now... Unless the nominal interest rates will go negative in the United States, yields only have one direction they can go--up! When yields go up, the prices of already-issued bonds on the market (at lower interest rates/yields) become worth less because now there are new bonds available that yield more. I just don't see how bonds could go up from here let alone hold their value. To the soon to be retiree, maybe you can get the best of the world of traditional finance and the new emergence of asset classes like crypto by allocating just a small percentage of your portfolio to Bitcoin. Doing so would provide more diversification and, given historical trends, allow the gains from the small Bitcoin allocation to supplement the returns of the entire portfolio at a scale that would be meaningful.
These are just my thoughts--I'm not a financial advisor and this is not investment advice.
Comment:
Sorry if the orange line is difficult to see. That "flat" looking line is the return of the S&P 500 over the same time period. It's hard to see because it pales in comparison to Bitcoin...