The case for a 2% Bitcoin allocation into multi-assets portfolios by Blackrock:
"So how can investors think about a bitcoin allocation? We take a risk budgeting approach: sizing the allocation based on how much it would contribute to total portfolio risk – measured by its long-run volatility and correlation to other assets (...). But from a portfolio construction perspective, it has some similarities with the “magnificent 7” group of mostly mega-cap tech stocks. Their market value – averaging $2.5 trillion in December 2024 – is similar to bitcoin’s (...) In a traditional portfolio with a mix of 60% stocks and 40% bonds, those seven stocks – if held at their current weights in the MSCI World – each account for 4% of the overall portfolio risk on average. That’s about the same share a 1-2% exposure to bitcoin would represent: Even though bitcoin’s correlation to other assets is relatively low, it’s more volatile, making its effect on total risk contribution similar overall. A bitcoin allocation would have the advantage of providing a diverse source of risk, while an overweight to the magnificent 7 would add to existing risk and to portfolio concentration. Why not more than 2%? A larger bitcoin allocation means its share of overall portfolio risk rises sharply. This effect is small when the allocation is small, but above 2% bitcoin’s share of total portfolio risk becomes outsized compared with the average magnificent 7 stock (...) . In an extreme case, should there no longer be any prospect of broad bitcoin adoption, the loss could be the entire 1-2% allocation. We think this is much less likely to happen to a magnificent 7 stock given these companies generate major cash flow and have tangible underlying assets. The upshot? By allocating no more than 2% to bitcoin, investors would: 1) introduce a very different source of return and risk; and 2) manage risk exposure to bitcoin".
JOE BIDEN has issued more pardons than any president in history, raising a few eyebrows.
Source: @MarioNawfal on X
QS World Uni Rankings
Source: World of Statistics
European Stocks trading at an all-time record discount relative to US Stocks
Source: Barchart, Blackrock
JUST IN: MICHAEL SAYLOR AND MICROSTRATEGY $MSTR BOUGHT 15,350 MORE BITCOIN $BTC
MicroStrategy spent ~$1.5 billion to buy the 15,350 at an average price of ~$100,386 per Bitcoin, boosting total holdings to 439,000. $MSTR 📈 +3.50% in pre-market. Source: Michael Saylor Tracker
It seems that Trump invitation wasn't that well received...
Source: BRICS News
🚨BREAKING: SAUDI ARABIA TO HOST THE 2034 WORLD CUP
FIFA has officially confirmed Saudi Arabia as the host of the 2034 World Cup, marking a bold step for football’s future in the Middle East. This is a chance to showcase Saudi Arabia’s transformation and its commitment to global sports. With its growing investment in infrastructure, culture, and innovation, the kingdom is set to deliver a world-class tournament like never before. Source: The Guardian, Mario Nawfal on X
Has the era o stagflation begun?
Initial jobless claims spiked by 17,000 to 242,000 last week, the highest since the first week of October. Non-seasonally adjusted claims skyrocketed by 99,140 to 310,366, the highest since January. This marks a whopping 30% year-over-year increase. At the same time, the number of people receiving jobless benefits surged to 1.89 million, near the 3-year high. To put this into perspective, continuing jobless claims are now 14% above the 2018-2019 pre-pandemic levels. All while CPI, PCE, and PPI inflation are all back on the rise. We have a weakening labour market with rising inflation. Source: The Kobeissi Letter
