Strategic portfolio allocations for financial resilience: a counter-factual analysis of Bitcoin and gold in US state Rainy Day Funds
Rainy Day Funds (RDFs) help U.S. states manage fiscal shortfalls and shocks but often rely on low-risk, low-yield investments that erode under inflation. In this paper, we test whether partial allocations to Bitcoin and gold bolster RDF performance from 2018 to 2024.