Shinhan Securities Shifts Investment Strategy with Gold and Bitcoin Allocation

Shinhan Securities has proposed an alternative asset allocation strategy to mitigate the growing correlation between stock and bond prices. In a briefing, senior research analyst Park Woo-yeol unveiled an ETF-based model comprising 60% equities, 30% bonds, 8% gold, and 2% Bitcoin.

The conventional 60/40 stock-bond split has been based on the assumption that bonds provide protection when stocks decline. However, with stocks and bonds moving in tandem recently, this traditional approach is no longer effective.

Shinhan Securities' model portfolio maintains a 60% equity allocation while reducing bonds to 30% and shifting the remaining 10% into alternative assets, including gold at 8% and Bitcoin at 2%. The rationale behind the 8:2 ratio stems from risk-adjusted performance analysis.

Park noted that the boundaries between traditional and digital finance are eroding, with stock and ETF trading becoming available on cryptocurrency exchanges. He also mentioned the influence of single-stock leveraged ETFs has diminished substantially.