Former CEO of Prudential Securities “People can’t believe the Fed…Bitcoin is an alternative to hedging”
Investors focus on cryptocurrency in stocks
George Ball, a renowned Wall Street investor and former CEO of Prudential Securities, said Bitcoin will grow as an alternative to hedging. The opinion that the growth trend of the cryptocurrency market will continue is empowering.
According to Cointelegraph on March 5, 2021 (local time), George Ball mentioned in an interview with Yahoo Finance that cryptocurrency is a good hedging tool to add to any investment portfolio.
“Investors now believe that the Fed is making a backwards choice for the times,” he said. “The current stimulus plan that the Fed is planning may be larger than the size of the stimulus plan that needs to be implemented over the next one or two years.” Pointed out.
Although the Fed is planning an active economic recovery in late 2021, expectations of economic recovery and excessive inflation concerns emerged at the same time, such as the Joe Biden administration’s massive stimulus measures and the Fed’s toleration of inflation. As a result, bond yields have risen and technology stocks that have peaked are in an unstable situation where they are being adjusted. This means that it will not be easy for investors who are in crisis in many ways to hedge their investments.
In fact, after Powell’s Fed Chairman’s remark on the failure to evolve inflation on the 4th, the price of US Treasury bonds fell 0.7% on a 10-year basis. This is due to concerns over inflation.
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“The best defense investors can do in a market at risk is to invest in cash and cryptocurrency,” said George. “Cryptocurrency, in particular, will be an attractive portfolio in the context of various investments.”
It is explained that as many individual investors have moved from stock investment to cryptocurrency investment, cryptocurrency has been able to build a sense of stability as an investment asset.
For example, Kevin O’Leary, the host of the U.S. business investment reality show’Shark Tank’, once said that bitcoin was’garbage’, but recently, 3% of his investment portfolio was spent on bitcoin. Are devoted to it.
As the public perception changes, the value of cryptocurrencies including bitcoin is growing. “Investing cryptocurrency in a portfolio for hedging will be an alternative for investors to overcome the current situation,” said George.
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