5/17/2023 0 Comments Ifinance definitionRead more: Noelle Acheson - Bitcoin and the Liquidity Question: More Complex Than It Seems While it’s unlikely, the value of our gold holdings could be zero. Paper gold is more convenient, but even if we could be sure the bars backing it were real those bars are subject to seizure. But we can’t always be sure that what we have is actually gold, and it’s complicated to store and to keep out of the hands of people stronger than ourselves. Gold is one of the oldest “safe havens” known to man, a durable metal with a liquid market and (in theory) supply that can't be manipulated. Still, the house is presumably still standing and offering the safety of shelter. Those percentages may seem small compared to last year’s fall in equities, but since housing is often a family’s most significant investment those drops can hurt. home prices are falling, down 0.2% in January from December and down 3% from last June. Houses must be safe, surely? Ah, wait – data released last week shows U.S. Yet, last year the typical 60/40 portfolio lost 18% on a nominal basis, pretty close to the damage done by the S&P 500 alone. Let’s take a look at how “safe, sensible investments” have been doing recently.Īnyone who has interacted with a professional adviser will have heard about the 60/40 portfolio, which counts on a prescribed stocks/bonds distribution to deliver a more counterbalanced return than focusing on just one or the other asset class. In the financial world, what is and isn’t safe is starting to change. What happens when our belief in what “safety” is starts to change? So, trust is necessary for safety (which is meaningless if there is no belief in it) and safety is necessary for trust (without basic reassurances, it’s hard to trust anything). Trust implies belief in the safety to feel and to act, and is a core component of pretty much everything that implies both personal and civilizational progress. But the layer with which it is most intertwined is “safety,” and I’ll argue that it is wedged into that category. Some of you may notice there isn’t a separate layer for “trust.” One could argue that it is a requisite for every layer in that you need to trust the food you eat won’t kill you, your house won’t get blown away and a friendship will lift you up. These opinions are hers, and nothing she writes should be taken as investment advice. This article is excerpted from her Crypto Is Macro Now newsletter, which focuses on the overlap between the shifting crypto and macro landscapes. Noelle Acheson is the former head of research at CoinDesk and Genesis Trading. (I know that many academics disagree with the premise and that Maslow never actually drew a triangle, but bear with me as I sketch out this construct.) The next part of the stack is the psychological need of belonging and self-esteem, and then we come to the peak of the pyramid, which is about achieving one’s full potential. To recap: At the very bottom we have the basics for survival: the physical needs of nourishment, rest and shelter, and then layered on top of that is safety. Until, that is, one of the needs towards the bottom isn’t being met, and then we think about it a lot. Join the most important conversation in crypto and web3! Secure your seat todayįortunately, we rarely have to think about Maslow’s Hierarchy of Needs, that triangle we saw in school that layers the key human requirements for flourishing.
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