Fidelity executive proposes 60/20/20 portfolio including Bitcoin

Jurrien Timmer, Global Macro Director at Fidelity Investments, suggests that the traditional 60/40 investment portfolio—consisting of 60% stocks and 40% bonds—has been superseded by a 60/20/20 model. This updated allocation allocates 60% to equities, 20% to bonds, and 20% to alternative assets.

Within the 20% alternative assets category, Timmer includes gold, commodities, cash, Bitcoin, REITs, managed futures, and leveraged loans. He highlights Bitcoin as a key diversifier due to its low correlation with traditional assets; specifically, Bitcoin maintains a roughly 30% correlation with the S&P 500 and near-zero correlation with long-term U.S. Treasury bonds.

Timmer noted that Bitcoin appears particularly interesting following recent price movements, including its climb above the $80,000 level. He previously identified a potential double-bottom formation on weekly charts, suggesting that a decisive breakout could lead toward a $100,000 target. He also observed that Bitcoin is showing strength when priced against gold.