How to trade gold and bitcoin after the big market rally
Gold has been a popular choice for investors looking to hedge against market volatility, with a year-long rally that saw the commodity gain 35%. Despite a recent cooling off, David Schassler, head of multi-asset solutions at Van Eck, believes that gold still has room to move higher. He pointed out that the U.S. government’s massive debt, spending, and chaos provide a favorable backdrop for gold, and he predicts that the price of gold could reach $5,000 next year.
Echoing Schassler’s sentiment, hedge fund manager David Einhorn of Greenlight Capital also sees potential in gold, stating that there is a bipartisan agreement to do nothing about the deficit until the next crisis. Einhorn is long on gold and predicts that it could reach $5,000 by 2026.
In addition to gold, Schassler is also bullish on cryptocurrency, particularly Bitcoin, which he refers to as the “risky cousin of gold.” Despite its volatility, Bitcoin has seen a 60% increase in the last year, outperforming gold in the past month with a 10% gain. To capture upside in Bitcoin while limiting risk, investors can consider ETFs with built-in protection, such as the Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ), which offers protection against losses exceeding 20%.
Overall, both gold and Bitcoin continue to be attractive options for investors looking to diversify their portfolios and hedge against market uncertainty. With the right strategies in place, investors can take advantage of the potential upside while managing risk effectively in both asset classes.
