Jefferies removes 10% bitcoin allocation from simulated portfolio due to quantum computing threats, increases gold holdings instead
Foresight News reported, citing Bloomberg, that Christopher Wood, Global Head of Equity Strategy at Jefferies, has removed the entire 10% bitcoin allocation from his model portfolio. Wood believes that the rapid development of quantum computing poses a potential threat to bitcoin’s cryptographic security and its status as a long-term store of value, especially for pension investors seeking long-term stability. The removed 10% allocation has been redistributed to the gold sector, with 5% allocated to physical gold and another 5% to gold mining stocks. Wood pointed out that since its initial allocation in December 2020, bitcoin has risen by 325%, far outpacing gold’s 145% increase over the same period. However, against a backdrop of rising geopolitical risks and emerging technological threats, gold’s long-standing appeal as a historically proven safe haven is increasing.
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