🚀 Bitcoin and gold serve as effective hedges against monetary inflation, which is the increase in asset prices due to money creation.
💰 Bitcoin is three times more sensitive to money creation than gold, making it a potentially stronger hedge in times of monetary expansion.
📉 While Bitcoin offers higher potential returns, it also comes with higher volatility, requiring a long-term investment perspective.
📉 The S&P 500 has experienced a correction, transitioning from early-year gains to potential negative territory, influenced by tariff announcements and commercial war fears.
📊 Historical data shows similar patterns of volatility and recovery, especially during periods of trade tensions, like in 2019.
⚠️ Market volatility is a recurring phenomenon, with the S&P 500 often experiencing significant intraday drops, even in years that end with positive returns.
⏳ Long-term investment significantly reduces the probability of loss, emphasizing the importance of maintaining investments over extended periods.
📈 The DAX is up 15% year-to-date, and the IBEX is up almost 14%, outperforming the S&P 500.
🌍 This shift is attributed to investors perceiving that the worst may be over in Europe, with expectations of interest rate cuts and economic stimulus measures.
🇪🇺 Measures such as eliminating the debt ceiling in Germany and stimulus packages to reindustrialize the country are expected to benefit the European economy.
🆚 European stocks are trading at lower valuations compared to the S&P 500, with a P/E ratio of 16 versus 26, making them attractive to investors.
🏛️ Donald Trump announced the creation of a strategic reserve including cryptocurrencies, specifically mentioning Bitcoin and Ethereum, among others.
🤔 There are concerns about potential insider trading, as a large leveraged position in Ethereum and Bitcoin was created minutes before the official announcement.
💼 The speaker supports a strategic reserve of Bitcoin due to its decentralized nature and properties similar to gold, but questions the inclusion of other cryptocurrencies with underlying companies.
📅 The speaker plans to continue investing in Bitcoin long-term (5, 10, 15, 20 years), emphasizing its resilience and independence from government actions.
📈 Gold has seen a price increase of over 12% year-to-date, driven by macroeconomic, political, and geopolitical conditions.
🌍 Increasing geopolitical tensions and trade wars are leading countries to seek protection with neutral assets like gold.
🏦 Central banks, particularly in China, India, Turkey, and Poland, are significantly increasing their gold reserves.
⚖️ Gold now represents 5.4% of all Chinese cash reserves, reaching 2,264 tons in 2024, the highest level since 1990.
