Why it is wise to add bitcoin to an investment portfolio

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 92%

日本 ニュース ニュース

日本 最新ニュース,日本 見出し

Bitcoin tends to move independently of other assets, making it an excellent potential source of diversification

The theory posits that a rational investor should maximise his or her returns relative to the risk they are taking. It follows, naturally, that assets with high and dependable returns should feature heavily in a sensible portfolio. But Mr Markowitz’s genius was in showing that diversification can reduce volatility without sacrificing returns. Diversification is the financial version of the idiom “the whole is greater than the sum of its parts.

Consider the mix of assets a sensible investor might hold: geographically diverse stock indexes; bonds; a listed real-estate fund; and perhaps a precious metal, like gold. The assets that yield the juiciest returns—stocks and real estate—also tend to move in the same direction at the same time. The correlation between stocks and bonds is weak , yielding the potential to diversify, but bonds have also tended to lag behind when it comes to returns.

This might explain its appeal to some big investors. Paul Tudor Jones, a hedge-fund manager, has said he aims to hold about 5% of his portfolio in bitcoin. This allocation looks sensible as part of a highly diversified portfolio. Across the four time periods during the past decade that Buttonwood randomly selected to test, an optimal portfolio contained a bitcoin allocation of 1-5%.

このニュースをすぐに読めるように要約しました。ニュースに興味がある場合は、ここで全文を読むことができます。 続きを読む:

 /  🏆 6. in JP
 

コメントありがとうございます。コメントは審査後に公開されます。

International governments should condemn the US attempt in Ethiopia to overthrow a democratically elected government.

Did nayibbukele know this before betting on Bitcoin? Muy distinto a lo que dicen los panfletos llorones de El Salvador prensagrafica EDHNoticias y otros pobres gorgojos. BancadaCyan

this is terrible news

peak crypto for sure now

😳

'The cryptocurrency might be highly volatile, but during its short life it also has had high average returns. Importantly, it also tends to move independently of other assets: since 2018 the correlation between Bitcoin and stocks of all geographies has been between 0.2-0.3.'

TECHNORA111BTC Someone at the just figured out that being an anachronistic defender of the days of yore, is not a good business model; one positive Bitcoin article & look at the amount of engagement on Twitter

TECHNORA111BTC What the heck, did the “radical” mail-room clerk write this? Regardless, nice to see the not writing obituaries anymore. Bitcoin

Hanke is gonna be pissed.

Satoshi wanted bitcoin to become the currency of freedom. Free from banks, Big Money, whales, fiduciary money and market manipulators. Satoshi's Child became the biggest trojan horse in financial history - the plebs is falling straight into the trap lured by the $$.

Blockchain is unstoppable, the future is here.

Yass! Nothing could go wrong in crypto currency and BrokoliNetwork, where you can both help for our environment and to your financial freedom!

Composite Man at play here!!!

LOL - NGMI

People help a person like you, I got into huge debts and I can no longer pay on loans and mortgages, I'm just at a dead end in life. I do not know what to do already, so I decided to write to you. Who can do as much as they can. BTC 14G7H1zuL76AtWrvAmNvtMjJHFPU3KW9zH

Barbecu 🔥🔥

Bottom is in.

BTC is simultaneously the trade of the century and the dumbest investment in your lifetime

Bitcoin is cringe and reddit

No

bit2me bit2me is the future, launches its coins on the 1st November, it's going to lead in the Spanish speaking world. I got in on the ICO and never been so confident of a decent profit.

oksymoron10 😳

'Tether is a fraud on the scale of Madoff or Enron and we’re in the middle of a bubble for the history books. ... But what caused this cryptocurrency bubble? Today we’re going to dive into a core driver, and likely the largest Ponzi scheme in history.'

Compounding passive interest from your Cryptocurrency & Forex Trade📈 on a daily basis without you Trading is possible👌 get a professional to do the work for you🥳 DM 💯%Safe

Kimler gelmiş kimler vay vay vay vay vay en büyük düşmandı şimdi CANKURTARANIMIZ OLDU ....

What an interesting turn of events! Would ve never expected a headline like this from FT or Economist. What's the catch? Are you just trying to drive a wedge in crypto community so it is easier for Mr. Gensler to 'divide & conquer' later?

invest_answers always ahead of the game

Is The Economist hedging against its own demise?

We don't buy bitcoin We earn bitcoin From Mining I'm ready to show 10 lucky people how to earn 0.1BTC ($4,300) and more daily! No referral No withdrawal fees If interested, kindly send a DM

Lmao one week it’s horrible and the next week it’s good. Economist is moody af 😂 It is clearly trying to figure out what type of stories its readers prefer when it comes to bitcoin.

Did you have a change of heart?

wifedoge The coin called wife dog is on the market, interesting coin🔥🔥🔥🔥🔥

Hello Everyone, Greetings for the day, If anyone is looking for Investment Consulting group, you can join:-. I have been personally using their crypto signals and it is doing wonders. Last week I got a return of 3x in one of their crypto signals!

Bitcoin is not a potential source of diversification, it’s the hardest and only decentralized money ever invented. Act accordingly

Sus..

If you were fired for publishing this, lmk. We’re hiring.

A globalist elite magazine shilling Bitcoin ? When their narrative has been to hate it.

yes! bcs it’s future contract on human greed and stupidity!

this literally isn’t true tho.

benny_options Well I never... nice 👌

ericyakes

This kind of worries me. A positive article about BTC in the MSM ? Is this real life?

nice April fool joke

Oh boy, how things change… I’m old enough to remember this

Now do this analysis backtested 100 years

Buttonwood for the win.

Ok The Economist....blink twice if they have taken you hostage. If you post another intelligent take we will contact the authorities to come save you.....hahahhaha....no...no we won't.

WHAT!! Guys, gals, I am worried. mainstream media pumping bitcoin.. what's going on frens? Exit liquidity? Change of narratives for the final giga pump before bear? Tell me.

reverse psychology?

ATO

Blink twice if you’re under duress

I’m stunned at how accurate this headline is for a change

Yup Bitcoin crashed with stocks during the covid19 market crash. It was the perfect set of diversification.

horrible

BACKED BY NOTHING!! It's just air....something 100% based on 'confidence'.....and what till it runs out.

allstarcharts do tweets count the same as magazine front covers in calling tops and bottoms? 😂

日本 最新ニュース, 日本 見出し

Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。

How decentralized finance works, and why it’s taking on Wall StreetWhat would a world without banks look like? The answer may lie in decentralized finance. LatticeExchange are cutting edge DeFi innovation leaders $LTX Not just taking on, crushing…
ソース: CNBC - 🏆 12. / 72 続きを読む »