During the California gold rush, which spanned from 1848 to 1855, an estimated 750,000 pounds of gold was discovered. In the 1st quarter, gold reached a new all-time high of $2,238.40/ounce, rallying over 7%. This means that the gold found during the gold rush would be worth approximately $26.8 billion today. Both gold and Bitcoin thrive during times of high inflation and currency devaluation, as we are currently seeing in today’s economy. Bitcoin experienced a significant surge, rising almost 70% during the quarter, from $42,547 to $71,011. Oil also saw gains of 15% for the quarter. While this benefits investors, it also increases inflationary pressure on consumers.
As equity markets reach all-time highs and the sentiment of higher interest rates persists, we have been exploring new alternative investments to enhance our clients’ risk-adjusted returns. One investment avenue we believe accomplishes this is the buffered investment space. Buffered investments participate in market gains up to a certain threshold, but offer some protection in the event of a market downturn. The trade-off is that when you participate in this space, you forego the dividends. We have begun acquiring DAPR: First Trust Vest U.S. Equity Deep Buffer ETF – April. This ETF provides down-side protection of 25% while allowing investors to participate in gains of up to 15%. As always, we are available to help you meet your financial goals – reach out to any of our LCNB| Wealth officers for a more detailed discussion.
