Howard Marks, co-founder of Oaktree Capital Management, questions the intrinsic value of Bitcoin and gold and favors high-yield bond funds as a safer investment option.
In a recent episode of the Merryn Talks Money podcast, Howard Marks, co-founder of Oaktree Capital Management, shared his views on Bitcoin and gold, suggesting a lack of intrinsic value.
Marks, whose firm specializes in distressed debt and manages about $180 billion, emphasized gold's historical reliability but questioned its fundamental justification.
When discussing the current investment climate, Marks noted a significant shift that suggests the era of 0% interest rates is likely over and advised investors to explore alternatives such as high-yield bond funds.
According to Marks, these funds offer significant returns and are inherently safer due to the nature of fixed income securities. This perspective suggests a cautious approach towards more speculative assets such as Bitcoin (BTC) and gold, favoring more traditional investment strategies.
Bitcoin ETFs versus Gold ETFsS
In 2024, Bitcoin and gold ETFs differ significantly in their market behavior. Bitcoin ETFs are new and exciting, especially since the SEC recently approved them. However, prices can change significantly due to regulations or events in the Bitcoin world, such as the upcoming Bitcoin halving.
In contrast, gold ETFs performed more stable. According to MarketWatch.com, the GLD ETF rose almost 13% in 2023, meaning gold ETFs could become more stable and continue to grow.
While Bitcoin ETFs are new and can be volatile in price, gold ETFs do not fluctuate as much as their BTC counterparts. Both are important in their respective markets, but differ in terms of risk and how the ETFs respond to market changes.
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