According to ZeroHedge, after a week in which the S&P 500 index recovered from previous declines and the Nasdaq index reached a new high, Tony Pasquariello, Global Head of Hedge Fund Business at Goldman Sachs, elaborated on his investment framework. He attributes the market’s resilience to the continuation of the artificial intelligence boom, robust capital flows, and the gap between the stock market and the real economy, amidst ongoing concerns about slowing job growth.
Pasquariello’s core recommendation is to “go long on value storage assets (gold/silver/bitcoin),” which serves as a hedging component in his overall “long and hedge” strategy for the second half of 2025. Incorporating gold, silver, and bitcoin (BTC) into the allocation reflects a strategy designed to address uncertainty, particularly in scenarios where the market deteriorates significantly and the summer trading environment is “sensitive and volatile.”
His overall strategy consists of four main pillars: going long on U.S. stocks (primarily technology stocks), going long on the aforementioned three value storage assets, moderately shorting the dollar, and trading a steepening yield curve globally. Pasquariello points out that while individual positions may underperform in certain weeks—such as last week’s dollar position or this week’s steepening curve strategy—the overall portfolio remains his preferred “protective shield.”
He acknowledges that short-term challenges persist, predicting that the market will enter a consolidation phase in August, with September’s technical landscape becoming more complex due to prior market re-risking. However, he believes that the main trend for the U.S. stock market in the second half of 2025 remains upward, particularly driven by profit growth in technology stocks. His strategy balances risk by being bullish on technology stocks while leveraging the defensive attributes of precious metals and cryptocurrency assets.
Pasquariello emphasizes the need to closely monitor the slowdown in the U.S. labor market and the risks associated with positions, particularly the impact from systemic ease. Nonetheless, he concludes that this investment portfolio, centered on value storage assets, remains the best framework under current market conditions, and that bearing hedging costs for stability is justified.
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