Market analyst James Bianco has urged investors to avoid pursuing outsized returns using leveraged products, despite several asset classes, including Bitcoin, trading near record highs.
Speaking with Scott Melker on The Wolf of All Streets Podcast, Bianco described the current environment as one where “everything is going up,” from stocks and gold to housing and crypto.
Although some investors interpret this as a green light to pile into riskier bets – whether it be leveraged Bitcoin exposure or triple-leveraged stock ETFs – Bianco compared the plan to a quote from Top Gun, saying, “the best flying I’ve ever seen right up until the moment you were killed.”
Instead, he urged caution, emphasizing that excessive leverage can quickly turn winning trades into costly mistakes.
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Instead, Bianco argued for a balance and viewed fixed income as a suitable allocation. He pointed to his firm’s Bianco Research Total Return Index, which is tracked via the WisdomTree ETF WTBN, and projected returns of approximately 4% on cash, 5% on bonds, and 6% on stocks over the next several years.
“Now, everybody turns their nose up on that, and let me give you the argument. I’ve made the case that starting. Moving forward over several years, not just now, but for several years, cash will average 4%, which is what it has done in the last year. Bonds will average 5%. They’re actually up 4.9 % in the last year. Stocks will average about 6-ish percent going forward.”
According to Bianco, Bitcoin plays a role in portfolios, but it operates more as a “levered risk asset”. Bianco says that it moves in the same direction as the underlying stock market rather than in the opposite direction as a hedge.
He contrasted Bitcoin’s “store of wealth” role with Ethereum’s recent rally, which he attributed in part to U.S. policy initiatives, such as the GENIUS Act, as well as renewed institutional interest.
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This story was originally reported by TheStreet on Oct 3, 2025, where it first appeared in the Business News section. Add TheStreet as a Preferred Source by clicking here.
