Q: Hi there, what are your thoughts on BTC at this point? Does it make sense to add a portion to one's portfolio and if so, at what weight makes sense? Thanks!
5i Research Answer:
We have a response posted here talking about our general thoughts on Bitcoin.
Historically, BTC has a relatively low correlation with the stock market, and has had higher average returns, which when run through simulators show that this can both increase an investment portfolio's returns and reduce the overall risk. But, this is using historical data only. Going forward, we feel its correlation with the markets will increase, but we also like its higher upside potential. With that being said, it also has the potential for large drawdowns. While we cannot personalize responses, we would keep position sizing low, due to its drawdown potential.