Do you know the number one worry for investors right now?
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It’s not Covid-19.
It’s not even higher interest rates, which have been blamed for some of the market’s big down days.
At least that’s what a recent survey of fund managers showed, with 37% listing it as their top concern that could hurt stocks.
Money flow bears that out. In the last week, investors put $1.2 billion into funds that buy Tips, which are inflation-protected securities. For the last 29 weeks, more money has come into Tips funds than has gone out.
If inflation is your number-one concern — and even if it’s not — you need to look at this.
For as long as anyone can remember, the go-to investment in times of rising rates and inflation has been gold.
But I think we’ve hit the end of “as long as we can remember.”
I’m not going to tell you to run out and sell your gold, but I do think it is not as compelling as it once was. It’s time to question whether to own it.
For my money, there’s a newer and better alternative. It has the same characteristics but a lot more upside potential.
Some people call it digital gold.
The chart below shows Bitcoin (CCC:BTC-USD) versus gold over the last 12 months, and I think it shows you exactly what I mean. Bitcoin has gained almost 590% while gold is up a whopping 4%.
If you think that’s because inflation is a more recent concern, well, here’s the same chart year-to-date …
That’s a pretty open and shut case. Some gold is probably fine for your portfolio, but it is no longer the best hedge against inflation.
That title now belongs to cryptocurrencies.
Like gold, silver and commodities, Bitcoin and some altcoins (cryptos other than Bitcoin) serve as a store of value during turbulent conditions. In fact, they can be an even better store of value.
In Bitcoin’s case, total supply