Why Gold is up While Bitcoin Breaks down

In an ever-fluctuating economic landscape, understanding where to place our trust and investments becomes paramount.?

Gold has consistently risen in value during both inflationary and deflationary periods, underscoring its reliability as a store of value for centuries.?

Contrastingly, Bitcoin, with its higher correlation to leveraged growth stocks, remains too volatile and market-sensitive to serve as a safe haven just yet.

Gold is the long-term winner as a steadfast protector of wealth. Here's why:

1. Stability Over Time: Gold's value rises in times of economic uncertainty, proving its role as a secure haven.
2. Low Correlation with Stocks: While Bitcoin swings with market sentiments, Gold maintains its course, making it a preferred choice for central banks looking to diversify away from foreign currency risks.
3. Maturity and Market Cap: Bitcoin, although promising, faces high volatility and is still maturing in market size. Until it stabilizes, Gold will continue to be the go-to asset for safe diversification.

The DOGE attack on Government spending and the AI productivity gains that eliminate workers is quickly shifting market sentiment to a economic growth scare over liquidity and inflation. This is the main reason for the turnaround in Bitcoin and leveraged growth stocks (TQQQ).?

This shift is also bad for corporate bonds (LQD) versus Government bonds (TLT) which I flagged as a great trade last week How to Profit in Trumps new plan …

This trade is a critical sign for the strength of investment grade corporate balance sheets and short LQD/Long TLT can go a very long way is economic recession creep into market sentiment.

Recent Changes to my Portfolio

Long TLT - I made 5% on half of my unleveraged TLT trade and sold an equal amount of LQD against the remaining 50% TLT.?

Long Gold - I sold 25% of my position and will sell another 25% at $3,000

Long 6-month T-Bills - A decent chunk of my portfolio is being held in 6-month bills. Very happy to earn 4.5% risk-free with so much uncertainty in markets.?

I want to own industrial stocks (XLI) longer term but I am looking for trade near $128 - $130 before jumping in.?

Until next time …

Live and Trade With Passion My Friends,

Bill Griffo?