Jefferies recommends pension funds to allocate 10pct to gold and bitcoin

[pmbug]

... Christopher Wood, global head of equity strategy at Jefferies.

Wood said that a failure to “exit from unorthodox monetary policy in a benign manner is likely to culminate in the collapse of the U.S.-dollar paper standard to the benefit of both gold bullion owners and also owners of Bitcoin,” and emphasized that investments in both BTC and gold should be regarded by investors as insurance rather than short-term trades.

Jefferies went on to recommend that U.S. dollar-based long-term global investors, including pension funds, allocate 10% of their funds to Bitcoin.
...

Jefferies calls Bitcoin a 'critical hedge' against inflation, recommends 10% allocation for pension funds

Jefferies says Bitcoin and gold are “critical hedges” in a recent note to investors and recommends that pension funds allocate 10% of their capital to the top crypto.

www.kitco.com

 

[BeefJerky]

I automatically dismiss people comparing Bitcoin to metals. It's not an element nor does it even have any useful purpose. The shit doesn't even work effectively. It's just some imaginary digital money scam that doesn't even have the backing of a government. Unless you count that volcano tard.

 

[pmbug]

Whether or not you agree with them, it is significant that this is what they are recommending to folks.

Jefferies Group - Wikipedia

en.wikipedia.org

 

[Casey Jones]

Sounds to me like, pump-and-dump.

Perhaps they bought in near the top, and now it's non-performing, or perhaps they lost money on it.

Sorry, but I can't see it. That the Wall Street money funds are recommending an investment that returns nothing, that can be had without their services, makes me suspicious.

 

[BeefJerky]

Plenty of others out there recommending the opposite. Seen a lot of articles calling Costco gold buyers fools, mugs, etc.

 

[Casey Jones]

Plenty of others out there recommending the opposite. Seen a lot of articles calling Costco gold buyers fools, mugs, etc.

Well, the barbarous relic has few friends, these days.

The reality is, when everything goes splat, gold is gonna fall. Why? Because high-flyers are going to need to cover margins; conservative investors are going to need capital to live; and gold is an easy thing to sell. So there will be lots of sellers as there's blood in the streets.

Fewer buyers to prop things up, as investors in stawk, will have lost any trifling cash. So it will take weeks to recover what's lost in hours - the COMEX price. If there is a COMEX.

Gold is for afterward.

Right now, I think just investing in our broken, collapsing system is a fool's pastime. Because we're imploding on so many levels - culturally; national borders; our provocations with a nuclear power; now, the Religion of Pieces, looking to taunt the West into conflagration.

We won't come out of this unscathed. Maybe not as a nation.

If I were to risk anything, as I said, I'd buy the indices. But I'm not, so I'm sticking with PMs.

 

[pmbug]

Not Jefferies and not bitcoin, but an echo of the investment advice to hedge with gold:

Equity markets in the U.S. and around the world remain overvalued and geopolitical risks continue to intensify, making it a good time for investors to increase their allocation to gold, according to JPMorgan Chief Market Strategist Marko Kolanovic.

In the investment bank’s latest Global Markets Strategy report, Kolanovic noted that while markets are off their early October lows, the medium-term outlook remains negative with headwinds getting stronger and tailwinds weaker.
...
The bank reversed last month’s cut to their model portfolio’s duration exposure, and is putting more into bonds and commodities, and gold in particular. “While it remains uncertain whether bonds have bottomed, we add back 1% to our government bond allocation given geopolitical risk, cheap valuations, and less pronounced positioning,” he said. “We additionally increase our allocation within commodities to gold, both as a geopolitical hedge, and given an expected retracement in real bond yields.”
...

Time to increase allocation to gold - JPMorgan's Kolanovic

(Kitco News) - Equity markets in the U.S. and around the world remain overvalued and geopolitical risks continue to intensify, making it a good time for investors to increase their allocation to gold, according to JPMorgan Chief Market Strategist Marko Kolanovic.

www.kitco.com

 

[nickndfl]

JPM was right that time.

 

[Peter89]

Gold is for afterward.

This could be true from a US perspective, but for many around the world gold is for right now.
I'm talking about those countries where people - among others - buy $ on the black market in order to protect themselves from the devaluation of their national currency.

For them, gold is for now.
The problem is, acquiring, storing and selling gold for them is not easy, so they fall back to other assets.

 

[nickndfl]

I am hoping Beanie Babies come back because we will be in high cotton!

 

[pmbug]

* bump *

Not Jefferies:

...
In a recent interview with Kitco News, George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors, said ...
...
... As to how much gold investors should own, in the current environment, Milling-Stanley said as high as 20% of a portfolio would not be inappropriate.
...

More:

It makes sense to hold up to 20% of your portfolio in gold - State Street’s Milling-Stanley

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

www.kitco.com

I wonder if that was just an off the cuff comment to Kitco News, or if that is what they are actually advising to clients...