Gold has experienced a slight dip after a year-long surge that saw the precious metal gain 35%. Despite this, David Schassler, head of multi-asset solutions at Van Eck, believes that gold still has room to grow as a market hedge. He highlighted the current economic climate, pointing to the massive debt, spending, and chaos in the U.S. government as factors that support a bullish outlook for gold.
Echoing this sentiment, hedge fund manager David Einhorn of Greenlight Capital expressed his belief that the deficit will not be addressed until the next crisis, further bolstering the case for gold as a safe haven asset. Einhorn is optimistic about gold’s future, predicting a price target of $5,000 by 2026.
In addition to gold, Schassler is also bullish on cryptocurrencies, particularly bitcoin, which he refers to as the “risky cousin of gold.” Despite its volatility, bitcoin has seen a 60% increase in value over the past year, outperforming gold in the last month.
For investors looking to capitalize on the potential upside of bitcoin while managing risk, Todd Rosenbluth, head of research at VettaFi, recommends exploring ETFs with built-in protection mechanisms. He highlighted the Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) as a viable option, offering investors a capped upside potential with a safety net in case of a significant downturn in the underlying assets.
Overall, both gold and bitcoin continue to attract investors seeking alternative assets to diversify their portfolios and hedge against market uncertainty. With the right investment strategies and risk management tools, these assets can offer lucrative opportunities for savvy investors looking to navigate the ever-changing financial landscape.
