Historically, U.S. Treasuries have been a "safe haven," providing some protection from crises, but from 2021 - 2023, Treasuries delivered -10%, their worst 3-year performance since at least the 1980s. Similarly, the 60/40 diversified portfolio suffered its worst performance period in 14 years with a return of -16% in 2022.
Consider bitcoin. The Bitcoin network appears to thrive on stress. When the Chinese government banned bitcoin mining in 2021, ~50% of bitcoin mining capacity was forced to shut down or move. Within seven months, capacity had completely recovered, and it is now over 2x what it was prior to the Chinese shutdown. In the past 15 months, the world's second largest crypto exchange declared bankruptcy, and the largest exchange was sanctioned by the U.S. Department of Justice. Bitcoin network transactions were unaffected, and trading volumes are near all time highs.
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