Howard Marks, co-founder of Oaktree Capital Administration, questions the intrinsic worth of Bitcoin and gold, favoring high-yield bond funds as a safer funding choice.
In a latest episode of the Merryn Talks Cash podcast, Howard Marks, co-founder of Oaktree Capital Administration, expressed his views on Bitcoin and gold, suggesting an absence of intrinsic worth.
Marks, whose agency makes a speciality of distressed debt and manages about $180 billion, highlighted gold’s historic reliability however questioned its basic justification.
Discussing the present funding local weather, Marks famous a big shift, indicating that the period of 0% rates of interest is probably going over, advising traders to discover options like high-yield bond funds.
In line with Marks, these funds provide appreciable returns and are inherently safer because of the nature of fixed-income securities. This attitude suggests a cautious strategy in direction of extra speculative property like Bitcoin (BTC) and gold, favoring extra conventional funding methods.
Bitcoin ETFs versus Gold ETFs
In 2024, Bitcoin and gold ETFs are fairly totally different of their conduct available in the market. Bitcoin ETFs are new and thrilling, particularly for the reason that SEC just lately permitted them. Nonetheless, costs can change considerably on account of rules or occasions within the Bitcoin world, such because the upcoming Bitcoin halving.
Conversely, Gold ETFs have been steadier. In 2023, the GLD ETF surged by almost 13%, in keeping with MarketWatch.com, which means gold ETFs have gotten extra secure and will proceed to develop.
Whereas Bitcoin ETFs are new and might be risky from a value perspective, gold ETFs don’t differ as a lot as their BTC counterparts. Each are vital of their respective markets however differ concerning threat and the way the ETFs react to market modifications.