In the grand theater of finance, where the actors are clad in suits and the stage is set with flickering screens, one Tony Pasquariello of Goldman Sachs emerges as the sage, proclaiming a portfolio strategy that dances between the realms of U.S. tech stocks and the glittering allure of traditional and digital “stores-of-value.” Yes, dear reader, that includes our beloved bitcoin, a modest dollar short, and global curve steepeners, all while the market swings like a pendulum in a haunted house. 🎢
Goldman Hedge Fund Chief Sees 3 ‘Stores-of-Value’ Holding Key Role in Portfolio Mix
According to the oracle Pasquariello, whose insights were shared by the ever-watchful Zerohedge, the global head of hedge fund coverage has laid out a framework following a week where the S&P 500, like a phoenix, rose from the ashes of its prior sell-off, and the Nasdaq (NDX) decided to throw a party, hitting a new all-time high. He attributes this market resilience to the relentless march of artificial intelligence (AI), healthy capital flows, and the curious distinction between the stock market and the underlying economy, where fears of slowing job growth linger like a bad smell in a crowded elevator.
At the heart of his recommended position lies the mantra: “long stores-of-value (gold/silver/ BTC).” This triumvirate acts as a hedge within his broader “long, with a hedge” approach for the second half of 2025. The inclusion of gold, silver, and bitcoin (BTC) reflects a strategy crafted to navigate the stormy seas of uncertainty, including a “twitchy, erratic” summer trading environment that resembles a cat on a hot tin roof.
The overall strategy, dear reader, consists of four pillars: long U.S. equities (tech-biased), long these three stores-of-value, a modest short on the U.S. dollar, and long curve steepeners applied globally. Pasquariello, with a twinkle in his eye, noted that while individual parts may underperform weekly – like the dollar last week or steepeners this week – the composite approach remains his “preferred bulwark.” A bulwark, mind you, that sounds more like a medieval fortress than a financial strategy!
He acknowledges the near-term challenges, expecting August to be a month of consolidation and September to bring tricky technicals, much like navigating a minefield after a particularly raucous party. However, he believes the primary trend for U.S. equities, particularly those tech stocks that drive earnings growth, remains higher for H2 2025. This strategy balances the bullishness on tech with the defensive qualities of precious metals and cryptocurrency assets, like a tightrope walker balancing a flaming sword and a bouquet of roses.
Pasquariello emphasizes the importance of monitoring the U.S. labor market slowdown and positioning risks, especially from systematic traders who might as well be juggling chainsaws. Yet, he concludes that the identified mix, with stores-of-value playing a crucial role, continues to hold up as the optimal framework for current conditions, justifying the cost of hedging for stability. Because, after all, who doesn’t want a little stability in this circus of a market? 🎪
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2025-08-10 20:19