Citi Research has highlighted the benefits of incorporating gold and Bitcoin into the traditional 60/40 stock-bond portfolio over the past decade. According to Citi, allocating approximately 5% to gold alone can significantly enhance portfolio performance. Further dividing this allocation between gold and Bitcoin can boost returns without substantially increasing risk. Analyst Alex Saunders noted that this "gold+BTC" strategy outperforms the traditional 60/40 mix, especially in strong bond environments and during bear steepening phases.
Citi also observed that amid recent geopolitical tensions and market volatility, Bitcoin has sometimes outperformed gold during weaker bond market periods. Over the past two months, Bitcoin has risen about 9%, while spot gold has declined approximately 4%.
Citi Research Advocates Adding Gold and Bitcoin to Traditional Portfolios
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