Analyst: Bitcoin, Gold and Silver Could Be in a Strong Bull Market

Markets have been on an absolute tear since Donald Trump reportedly won the election, but investors are questioning whether this sensational performance can continue beyond his inauguration day.

Analyst Brian Russ said, ‘If we expect deficits to widen and inflation to rise cyclically, then bonds become less attractive compared to real assets. This could be equities and certainly precious metals. I think Bitcoin and commodities come into the discussion as well. You can see some of the price action in commodities is partly driven by story and partly by supply dynamics.’

Russ said ETFs could impact traditional 60/40 portfolios, with more people moving away from the bond market and into alternative investments. ‘The 60/40 portfolio has been 60 per cent equities and 40 per cent bonds. Now people are looking for alternatives. So we may not have all 40 per cent of our investments in bonds. Maybe gold and silver will make up part of it, and maybe bitcoin will make up part of it.’ As these portfolio reallocations happen, expect gold, bitcoin, silver and even some other assets to move along. Fixed income, he argues, will face headwinds, and we may be in the early and middle stages of that right now.