One investment strategy that you might want to apply on your portfolio

Deleveraging on your all assets is coming shortly

As treasury yield is inclining and the Fed interest rate is staying at the highest level, every asset on your portfolio will be deleveraged in some way. As you check the earning yield of S&P 500 in the 2Q, 2023 is 4.07%. Compared to a 10-year treasury bond, it is 4.58%. A Treasury bond is one of the safest assets in the world that gives you 4.58% without losing your original seed money once you meet the maturity of the treasury bond date. This means you will get more return if you invest in the treasury bond, compared to investing in the S&P 500 for 10 years with the risk. Who will invest in the S&P 500, if you get the safest return on the treasury bond? Along with the increasing yield of treasury bonds, Every asset will be through deleveraging process and debased into its intrinsic value.

Keep your asset valuation against deleveraging events

Here is one investment strategy for my own portfolio management. I have been thinking about how can I store and keep the value of my assets without being deleveraging since the Fed increased the interest rate. Now is not a time to be aggressive in your portfolio but be defensive in your portfolio management. As you know Warren Buffet is investing in ultra short-term Treasury bonds such as 3-month, and 6-month to keep his cash in his balance sheet. Like a Mr. Buffet, I think we need to figure out how can keep our value of assets and which asset vehicles should we use for keeping value within the era of stagflation and high-interest rates. My final answer is to invest in any vehicles that generate full of cash in the market and store that cash value for quite a longer period. This is the reason why I invest in Bitcoin and a US Big tech company. These asset vehicles have two characteristics. 

US Big Tech companies will have a more monopolistic position 

US Big tech companies such as Google, Apple, Tesla, etc are cash-generating machines even though we are in stagflation. There might be declined revenue on their balance sheet but their intrinsic value on their platform technology isn't changed. Their monopolistic positions will be strengthened over a longer period of time. Once every asset is deleveraged and the earning yield of Big Tech company stock becomes the lowest level in all-time history, That is the timing to buy more stock of Big Tech company. And also these company is standing at the border of US-China geo-political conflicts. This means that these companies are developing game changer technology such as AI, Autonomous vehicles, cloud computing and future computing systems like a Quantum Computing etc.

Bitcoin is the best asset for storing value within the crypto-system and network

One of the best characteristics that I love about Bitcoin is that they don't print more currency and keep 21M coins within the system and reduce the supply quantity in every 4 years. These are quite similar to "Stock Buy Back" which Warren Buffet loves. So the value of Bitcoin will be increasing over a longer period of time. That is why Bitcoin is the best asset for investors to store the value of their assets in the safest manner within the era of stagflation. While US government debt has skyrocketed, systemic risks will have more possibilities to come into the market. More instability of the market is increasing, People will find...kind of refuge... for their portfolio. I think Bitcoin will be the refuge in the era of stagflation. I think Mr. Buffet should buy Bitcoin in his portfolio rather than buying ultra short term bond

Let me summarize this. One investment strategy for the current period is all about any investment vehicles that can generate cash and store that cash value within asset vehicles.