Howard Marks perceives Bitcoin and gold as nearly indistinguishable.
Howard Marks, the co-founder of Oaktree Capital Management, has raised doubts about the true value of Bitcoin and gold, suggesting that they may lack intrinsic worth. In a recent episode of the Merryn Talks Money podcast, Marks, whose firm specializes in distressed debt and manages around $180 billion, acknowledged the historical reliability of gold but questioned its underlying rationale. He went on to discuss the current investment climate, noting a significant shift away from the era of 0% interest rates. Marks advised investors to consider alternative options, such as high-yield bond funds, which offer substantial returns and are considered safer due to the nature of fixed-income securities. Consequently, he adopted a cautious approach towards more speculative assets like Bitcoin and gold, favoring more traditional investment strategies.
Looking ahead to 2024, it is clear that Bitcoin and gold ETFs exhibit different behaviors in the market. Bitcoin ETFs, which are relatively new and exciting, have garnered attention since their recent approval by the SEC. However, their prices can fluctuate significantly due to regulatory changes or events within the Bitcoin ecosystem, such as the upcoming Bitcoin halving. On the other hand, Gold ETFs have demonstrated more stability. In 2023, the GLD ETF experienced a surge of nearly 13%, indicating that gold ETFs are becoming increasingly reliable and may continue to grow. While both Bitcoin and gold ETFs play important roles in their respective markets, they differ in terms of risk and their reactions to market fluctuations.
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