In a recent analysis, Columbia Business School professor and QuantStreet Capital partner, Harry Mamaysky, discusses the investment prospects of gold in comparison to the rise of Bitcoin. Mamaysky highlights that gold is often under-allocated in investors’ portfolios but may become increasingly attractive due to the Fed’s anticipated easing cycle. He points out that gold historically serves as a store of value and an inflation hedge, making it comparable to Bitcoin in terms of investment potential.
By examining the historical behavior of gold futures prices during periods of Fed easing, Mamaysky suggests that gold may perform well in the coming years if the central bank initiates a new easing cycle, as futures prices have typically increased in response to such actions. He also utilizes a machine learning-based forecasting model to predict a positive one-year ahead gold return forecast of 8.46%, further supporting the idea that gold may be a worthwhile investment opportunity. Mamaysky’s analysis positions gold as an appealing asset class with low correlation to other risk assets, making it an attractive addition to diversified portfolios, especially with the potential catalyst of an impending Fed easing cycle on the horizon.