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Fidelity analyst Jurrien Timmer argues that the traditional 60/40 portfolio is obsolete and recommends a 60/20/20 split including 20% in alternative assets. Bitcoin is included in this alternatives bucket due to its low correlation with the S&P 500 and US Treasury bonds. Timmer also notes a double bottom formation on Bitcoin charts that could signal a move toward $100K if price closes above $82K.
Should Bitcoin have a place in your portfolio? Some investors say it helps spread out risk. Others think it just adds more of it. , he said the old 60/40 portfolio, 60% stocks and 40% bonds, has had its day.
What’s replaced it is a 60/20/20 split: 60% equities, 20% bonds, and 20% alternative assets. Timmer says this change kicked in after the pandemic, and he doesn’t see a reason to switch things up right now. The 60/40 setup has been the default for decades, so setting aside a fifth of a portfolio for alternatives is no small thing. In Timmer’s updated model, 20% goes to alternative assets.
That covers gold, commodities, cash, Bitcoin, REITs, and managed futures. BTC’s correlation with the S&P 500 is at 30%, and it has no correlation with US Treasury bonds. Bitcoin doesn’t always move in step with stocks and bonds; exactly what you want from something meant to diversify. That said, Timmer was clear that this isn’t an optimized portfolio.
He called it a rough example of how assets could be split and said it shouldn’t be taken as investment advice. Notably, this isn’t the first time he’s been upbeat on Bitcoin, either. In an earlier analysis, with the power law model, he predicted a BTC price of $300K by 2029.that Timmer spotted BTC forming a double bottom on the weekly charts.
A weekly close above $82K would complete the pattern and clear the way to $100K, a potential 24% upside. Fidelity’s Jurrien Timmer says the 60/40 portfolio is now 60/20/20; Bitcoin is in the 20% alternatives bucket. AMBCrypto was founded in 2018 with a mission to simplify and bring the latest blockchain and cryptocurrency news to our readers.
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