According to Hugh Hendry, founder of Eclectica Macro, exposure to real assets is crucial in this uncertain macro environment. However, Hendry still prefers to hold four times more Bitcoin than his gold portfolio. Here is why.
Hugh Hendry: When that happens, I’ll get gold!
Hendry’s best selection of real assets is yellow metal. “I keep 5% of my portfolio in gold,” Hendry says. ‘Why gold?’ He replied, “Because for the last 12 years, gold has consistently reached $2,000. It feels like there is a price barrier. Many people want to own shiny metal. But there is not enough economic incentive or data to support a consistently higher gold price.” gives the answer.
However, Hendry expects the gold price to rise above the $2,000 resistance in the months and years ahead. Accordingly, Hendry will begin to increase its 5% position. In this context, Hendry makes the following statement:
When it reaches $2,000, it disappears and falls. But these days it will go up to maybe $2,100, $2,200, $2,300. When it breaks the barrier to the upside, I will buy it.
Bitcoin’s portfolio share is 4 times that of gold
At the time of writing, Comex gold contracts for December delivery were trading at $1,923. cryptocoin.com As you follow, spot gold is at $1,894.50. Despite Hendry’s positive view of gold, Bitcoin is still bullish with a 20% share.
Hugh Hendry, “20% of my portfolio is in Bitcoin. Not Crypto, Bitcoin! This is because… Bitcoin is the new kid on the block… and it showed a proof of concept.” says. Bitcoin dropped from a record of nearly $70,000 in 2021 to just under $30,000. This is why Hendry sees a lot of upside potential in Bitcoin.
Gold or Bitcoin has the potential to 3X?
According to Hugh Hendry, it all depends on market value. Comparing Bitcoin’s total market cap of $500 billion with the $12.6 trillion market value of gold, Hendry states that the chance of Bitcoin tripling its price is much higher than gold. He expresses his views on this matter as follows:
Could the price of gold triple? Let’s say gold is at $2,000. Can gold trade at $6,000? I don’t know. I can’t even imagine. At $6,000, gold would have a market value of $30-50 trillion. So gold will be worth more than all US stocks. And it’s really hard for me to imagine that. Whereas if Bitcoin were to triple, it would be the size of a large US stock. So, it would be Meta size. This is possible.
All Bitcoin needs is the right catalyst
Hugh Hendry says that even if Bitcoin’s market cap reaches $1.5 trillion, it’s still a pretty “small” market. Hendry states that all he needs is the right catalyst for Bitcoin to triple. He notes that this could also be the approval of several spot Bitcoin ETFs, including the application by BlackRock. Based on this, Hendry makes the following comment:
House always wins. BlackRock always wins. They see a huge opportunity to launch ETFs. And so the more Bitcoin can go from half a trillion dollars to a trillion, two trillion, three trillion, the more money the Wall Street system, the casino, will make. If you’re making a bet… as an investor, I want to say: I have BlackRock, I have Fidelity, I have Wall Street behind me. They want Bitcoin to be higher.
