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 Money 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 focuses on 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 buyers to discover options like high-yield bond funds.
In response to Marks, these funds provide appreciable returns and are inherently safer as a result of nature of fixed-income securities. This attitude suggests a cautious strategy in the 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 completely different of their conduct out there. Bitcoin ETFs are new and thrilling, particularly for the reason that SEC not too long ago permitted them. Nevertheless, costs can change considerably as a result of laws 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, that means gold ETFs have gotten extra secure and will proceed to develop.
Whereas Bitcoin ETFs are new and could be risky from a worth perspective, gold ETFs don’t range as a lot as their BTC counterparts. Each are essential of their respective markets however differ concerning danger and the way the ETFs react to market changes.