Oaktree Capital Management co-founder Howard Marks questions the intrinsic value of Bitcoin and gold, preferring high-yield bond funds as a safer investment option.
In a recent episode of the Merryn Talks Money podcast, Oaktree Capital Management co-founder Howard Marks expressed his views on Bitcoin and gold, suggesting they lack intrinsic value.
Marks, who specializes in non-performing loans and manages about $180 billion, emphasized gold’s historical reliability but questioned its fundamental legitimacy.
Discussing the current investment environment, Marks pointed out significant changes that indicate the era of 0% interest rates may be over, advising 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 to speculative assets such as Bitcoin (BTC) and gold and favors more traditional investment strategies.
Bitcoin ETF and Gold ETFS
2024 Bitcoin and Gold ETFs have quite different behavior in the market. Bitcoin ETFs are new and exciting. Especially after the recent SEC approval. However, regulations or events in the Bitcoin world, such as the upcoming Bitcoin halving, can cause the price to change significantly.
Conversely, gold ETFs have been more stable. The GLD ETF has surged nearly 13% in 2023, according to MarketWatch.com. This means that gold ETFs are more stable and can continue to grow.
Bitcoin ETFs may be new and more volatile from a price perspective, but gold ETFs are not as diverse as BTC ETFs. Although both are important in their respective markets, they differ in terms of risk and how the ETF reacts to market changes.