If you’re getting 2022 off to a good start by reassessing your financial goals and, if necessary, rebalancing your portfolio, you may be asking whetherAs a global investment manager, we have a fiduciary responsibility to clients. To deliver on that, we use rigorous frameworks and portfolio models. Before we add a new asset to the mix, we evaluate its investment merits and ability to generate positive real returns over time.
Perhaps a valuation model or framework will evolve in time but until it does, we view crypto as highly speculative and worth only what the next person is willing to pay. So, along with gold, it’s staying out of Vanguard’s standard asset allocation models.satellite portion of your portfolio This approach will help temper the volatility that crypto delivers. And remember, without the benefit of diversification, volatility will go both ways. There is no doubt some people have benefited from crypto’s rise and many more will make money in the future.