According to Matt Hawgan, the volatility of the investment portfolio can be reduced if you add more securities with low risk. In particular, these can be short -term Treasury bonds of the United States:
“Bitcoin is an extremely volatile asset. If you use the most common metric, then it has this indicator above about three to four times than that of the S&P 500 stock index. Adding bitcoin to the portfolio can make the entire portfolio more volatile if you do not reduce the risks. ”
According to the expert, the plus of Bitcoin is that he so far has a low correlation with shares and bonds of large public companies. Therefore, adding the first cryptocurrency to the portfolio does not carry significant risks – if the portfolio is balanced.
In the next few years, investors will have to repeatedly revise the structure of their portfolios, given the macroeconomic indicators and the growing value of the first cryptocurrency, the analyst summed up.
Earlier, Matt Hawgan in an analytical note for investors said that if the US Congress does not accept “cryptocurrency laws”, the next three months will be very difficult for the market.
Source: Bits
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