The BOLD Chart Book - July 2022
Disclaimer: Your capital is at risk. This is not investment advice.
ByteTree BOLD
Bitcoin and Gold have recently suffered along with everything else, but the signs are that we’ve seen the worst. US$ strength looks exhausted, which is a relief for risk assets, but can we be complacent about the inflationary outlook?
This week we present the BOLD Chart Pack, which will be updated and sent once a month. In it, we look at the drivers behind ByteTree’s BOLD1 Index, which combines gold and bitcoin on a risk-weighted basis. The pack includes BOLD’s long- and short-term performance against other asset classes, as well as ByteTree’s fair valuations. We will also include charts that highlight the major macro issues of the day.
The beauty of BOLD is that it contains two assets that naturally complement each other through different macro settings. BOLD1 has beaten a 60/40 portfolio by a remarkable 11% per annum on a consistent basis. Most of that has occurred during strong bull and bear markets, yet BOLD1 has tended to lag during benign environments.
The explanation is a superior asset mix that has added 4% to 5% per annum, with rebalancing transactions contributing an impressive 6% to 7%. This only works because bitcoin and gold are naturally uncorrelated.
It’s unashamedly a plug for one of our products, but we believe so strongly in the BOLD idea that it comes with no apologies. We hope you find the BOLD chart pack informative. And please let us know if there’s anything you’d like to see added.
