Tony Pasquariello of Goldman Sachs maintains a core portfolio strategy prioritizing U.S. technology stocks, traditional and digital 'stores of value' like bitcoin, a moderately short dollar position, and flattening global curves despite recent market volatility.
The Goldman hedge fund director sees the crucial role of 3 'stores of value' in the investment portfolio mix.
According to Pasquariello's views shared by Zerohedge, the global head of the hedge fund detailed his working framework after a week in which the S&P 500 recovered from a prior sell-off and the Nasdaq (NDX) reached a new record high. He argues that the market's resilience is due to the momentum of artificial intelligence (AI) development, strong capital flows, and the distinction between the stock market and the underlying economy, where concerns about slowing job growth persist.
The focus in his recommended position is 'long stores-of-value (gold/silver/BTC).' This component acts as a counter in his broader 'short-term, with coping' approach for the second half of 2025. The inclusion of gold, silver, and bitcoin (BTC) reflects a strategy designed to navigate uncertainty, including the 'volatile, erratic' summer trading environment with deteriorating market depth.
The overall strategy includes four pillars: long-term U.S. stocks (favoring technology), long-term positions in these three stores of value, a moderately sized short-term U.S. dollar position, and a long-term steep global curve. Pasquariello also noted that although small segments may perform poorly weekly – like the dollar last week or this curve this week – the aggregate method remains his 'preferred stronghold'.
He acknowledges short-term challenges, predicting stability in August and complex techniques in September after significant re-risking for the market. However, he believes the main trend for U.S. stocks, particularly technology stocks driving profit growth, remains higher for H2 2025. This strategy balances optimism about technology with the defensive nature of precious metals and cryptocurrencies.
Pasquariello emphasizes monitoring the slowdown of the U.S. labor market and position risks, particularly from systematic traders. However, he concludes that the established mix, with stores of value playing a crucial role, continues to hold firm as the optimal working framework for the current situation, justifying the costs of coping to ensure stability.
