AI-Heavy Portfolios Find New Safe Haven in Bitcoin Amid Bond Woes

The traditional 60/40 portfolio is facing challenges due to the dominance of AI in equity allocations and the poor performance of US government bonds.

US federal debt has surpassed $40 trillion, and long Treasuries have delivered negative real returns over the past decade, making it one of the worst stretches in 223 years of available data.

Anthony Pompliano suggests pairing Bitcoin with AI equities to address both growth exposure from AI and inflation-hedging properties from Bitcoin.

Bitwise CIO Matt Hougan recommends a Bitcoin exposure of 2% to 10% for investors, arguing that 0% Bitcoin allocation is no longer conservative but rather a misallocation.