Goldman Sachs strategist Tony Pasquariello maintains a core portfolio that prioritizes American technology stocks and three 'stores of value' including gold, silver, and Bitcoin.
Goldman Sachs is reinforcing its defensive investment strategy by recommending the combination of traditional and digital assets as 'stores of value' amid volatile market conditions. Tony Pasquariello, Global Head of Hedge Fund at Goldman Sachs, presented the detailed investment framework following a week where the S&P 500 recovered from a previous sell-off and Nasdaq reached new record highs.
According to Pasquariello, the resilience of the market is driven by the momentum of artificial intelligence, strong capital flows, and the distinction between the stock market and the underlying economy, while concerns about slowing job growth persist. This strategist emphasizes the crucial role of 'long-term stores of value (gold/silver/BTC)' as a countering component in the broader investment approach for the second half of 2025.
The inclusion of gold, silver, and Bitcoin reflects a strategy designed to navigate uncertainty, especially in the 'unstable, erratic' summer trading environment with deteriorating market depth. This combination represents a modern approach to diversifying portfolios, as Bitcoin is seen on par with traditional precious metals in terms of preserving value.
Four-Pillar Strategic Framework
Pasquariello's overall strategy is built on four main pillars: long-term American stocks leaning towards technology, long-term three aforementioned stores of value, short-term US dollar with moderate scale, and long-term global steepening curve. He mentioned that although some components may underperform in the short term, the composite approach remains the 'preferred stronghold' under current market conditions.
Goldman Sachs strategists acknowledge short-term challenges, forecasting stability in August and complex techniques in September after significant risk reallocation for the market. However, he maintains confidence that the primary trend for American stocks, particularly technology stocks driving profit growth, remains positive for the second half of 2025.
This approach balances the optimism about technology with the defensive nature of precious metals and cryptocurrencies, reflecting a shift in the perception of Bitcoin from a speculative asset to a store of value akin to gold and silver. Goldman Sachs' official inclusion of Bitcoin alongside precious metals in investment recommendations is an important sign of the increasing institutional acceptance of cryptocurrencies.
Pasquariello emphasizes the importance of monitoring the slowdown in the US labor market and positional risks, particularly from systematic traders. He concludes that the determined mix, with stores of value playing a significant role, continues to be the optimal working framework for the current situation, justifying the costs of countering to ensure portfolio stability.
