Fiscal Dominance Is Breaking The 60/40 Portfolio | Matt Hougan & Bob Haber

The US dollar has lost over 90% of its value since the departure from the gold standard, driving a fundamental shift in portfolio construction toward "debasement assets." Investors are increasingly moving away from traditional 60/40 portfolios, which rely entirely on fiat-denominated assets, to incorporate gold and Bitcoin as essential hedges against long-term fiscal instability. Matt Hougan of Bitwise and Bob Haber of Proficio emphasize that the current era of fiscal dominance—characterized by massive government debt and deficit spending—necessitates assets that are not reliant on government-guaranteed purchasing power. While gold remains a traditional store of value, Bitcoin is increasingly functioning as "digital gold," with institutional allocations shifting toward a 2-5% range. Gold miners also offer strategic leverage, providing exposure to hard assets with improved capital discipline and operational efficiency compared to previous market cycles.