BlackRock says Bitcoin and liquid alternatives gain appeal as 60/40 portfolio loses its edge
Crypto Briefing
BlackRock suggests adding Bitcoin, gold, and liquid alternatives to portfolios to hedge against the weakening diversification benefits of the traditional 60/40 model.Summary
BlackRock has advised that the traditional 60/40 portfolio is becoming less reliable due to rising stock-bond correlations and increased market volatility. In a recent report, the firm suggests that investors incorporate Bitcoin, gold, and liquid alternatives to better diversify risk. BlackRock highlights that Bitcoin and gold exhibit low correlations to both equities and each other, potentially enhancing portfolio resilience. While the firm suggests a modest 1% to 2% allocation to Bitcoin, it emphasizes that this should be funded from equity portions of a portfolio rather than fixed income, given Bitcoin's higher volatility profile.
(Source：Crypto Briefing)