If you held bitcoin in your 60/40 portfolio in the early days of crypto, you might have gotten a boost from it, the firm found.
If you held some bitcoin in your 60/40 portfolio back in 2014, you might have gotten a nice lift from the then-shadowy cryptocurrency, according to a Citi analysis of bitcoin returns. Based on a 1-year rolling analysis dating back to 2014, Citi found that a U.S. portfolio that's split 60% toward stocks and 40% in bonds would see a return of 6.95%. That return rose to 7.42% when analysts added a 1% allocation toward bitcoin.
However, there are risks that come with adding the cryptocurrency to an otherwise balanced portfolio. For instance, bitcoin's correlation with other asset classes has grown over time. Citi's analysis found that bitcoin tends to rally when the U.S. dollar weakens and that rough patches for stocks tend to coincide with falling returns for the cryptocurrency.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Etsy Stock Heads for Worst Day Since 2020 After DowngradeCiti analysts downgraded shares of the online marketplace Etsy from Buy to Neutral.
Read more »
Verizon raised after Q3 beat, American Express upped at Citi: 4 big analyst picksVerizon raised after Q3 beat, American Express upped at Citi: 4 big analyst picks
Read more »
American Express Stock Bolstered by Resilient Economy. Citi Drops Bearish Stance.Citigroup analysts upgraded Amex stock to Neutral from Sell while raising their price target to $154 from $143.
Read more »
Wall Street hikes forecasts for anti-obesity drug sales to $100 billion and beyond — A look at the numbersCiti notched its estimate for incretin drug sales to $71 billion by 2035, up from its prior estimate of $55 billion. That view seems conservative. Here's why.
Read more »
Wall Street hikes forecasts for anti-obesity drug sales to $100 billion and beyond — A look at the numbersCiti notched its estimate for incretin drug sales to $71 billion by 2035, up from its prior estimate of $55 billion. That view seems conservative. Here’s…
Read more »
- The MCU's Shows Aren't Worse Than Marvel's Netflix SeriesAlthough the MCU's Disney+ shows have received mixed reception online, the shows' statistics are actually better than Marvel's Netflix shows.
Read more »