BlackRock advises adding Bitcoin and gold to diversify portfolios amid rising stock-bond correlations.

BlackRock recommends financial advisors consider Bitcoin, gold, and liquid alternatives to diversify portfolios as traditional stock and bond correlations remain high since 2020. Their report shows Bitcoin has a moderate correlation with the S&P 500, while gold has a lower correlation, suggesting these assets can complement each other for better risk dispersion. BlackRock suggests a 1-2% Bitcoin allocation funded from equities to manage volatility, while gold and liquid alternatives typically draw from fixed income. This shift reflects challenges in traditional 60/40 portfolios due to increased market volatility and tighter asset relationships.