The stock market is having a strong year, with the S&P 500 up over 20%, well above its long-term average. But other assets have fared even better. Gold is up nearly 25%, and bitcoin is up over 40%.
Investors continue to move into these trades on skepticism about the market rally lasting. It’s possible that lower interest rates could fuel inflation again, which could send these assets even higher.
With that potential scenario in mind, investors may want to continue to invest in these assets as they’re likely to keep trending higher.
Fortunately, it’s easier than ever before to invest in these assets in a simple and liquid way. Investors can buy the SPDR Gold Shares ETF (GLD).
That ETF tracks the price of the metal higher or lower, and can be bought and sold at a lower cost than buying or selling physical gold. Individual gold mining stocks could see better returns, but also have higher volatility compared to buying the gold ETF.
For bitcoin, several options exist since ETFs started trading earlier this year. Among the players there, the largest is the iShares Bitcoin Trust (IBIT), which has over $23 billion in assets.
Bitcoin is still in its post-halving stage, and will likely continue to appreciate in price through the end of 2025. Investors who buy now may be able to enjoy longer-term capital gains rates a year from now when prices will likely be near a cycle peak.
Action to take: Ensure you have a modest allocation to gold and bitcoin now.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.