In a recent social media post, Fidelity's Jurrien Timmer has implied that both gold and Bitcoin might be getting overvalued.
He has noted that the two assets now represent 133% of M2, which measures the most liquid forms of money in the US, including cash, deposits, and so on.
This is close to the 1980 peak of the yellow metal's value relative to M2, as noted by the prominent analyst.
That said, Timmer did not explicitly state that these assets have already peaked. However, he believes that bulls should be somewhat cautious.
"It’s something to keep in mind after gold’s stratospheric run," he said.
Two key trends
In a follow-up post, he claims that Bitcoin and gold are essentially a play on two trends: US fiscal dominance and the challenge to dollar dominance.
Countries and investors are looking for non-dollar assets that could serve as viable alternatives.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team