A highly respected money manager that has called the last three financial bubbles says the current bubble is the “real McCoy,” and recommends zero exposure to traditional equities. But investment capital must flow somewhere – will Bitcoin benefit from the eventual stock market bubble bursting?
Legendary Bubble Expert and Money Manager Recommends Zero Exposure To Equities
Although Black Thursday saw an initial stock market selloff that also crushed Bitcoin and other cryptocurrencies, once the Federal Reserve kicked its money printer into overdrive, the impact on the stock market has all but been erased.
Many major stock indices already set new all-time highs. A V-shaped recovery has stock market investors boasting about a bull market amidst record jobless claims and a country breaking out in riots and protest.
Nothing is making any sense, and it is becoming increasingly clear that markets are irrational and investors are exuberant. These are telltale signs of a bubble.
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Famed bubble expert and money manager Jeremy Grantham agrees. The Boston-based money manager at Grantham, Mayo, Van Otterloo & Co. calls it all “crazy stuff,” and says that the recent surge in stocks is “a rally without precedence.”
“My confidence is rising quite rapidly that this is, in fact, becoming the fourth, real McCoy, bubble of my investment career. The great bubbles can go on a long time and inflict a lot of pain but at least I think we know now that we’re in one. And the chutzpah involved in having a bubble at a time of massive economic and financial uncertainty is substantial,” Grantham said.
Grantham further warned that the best exposure currently to equities markets is currently zero exposure. This is due to the potential impact a bubble bursting could have during a global recession.
Source: TradingView
Will Bitcoin Benefit From the Stock Market Bubble Burst And Eventual USD Collapse?
An extended global recession is near, and as soon as the Federal Reserve’s money printer fails to prop markets up, things could get ugly quick.
Looking at the long-term trajectory of the S&P 500, the end appears nigh. In the chart above, over 30 years of parabola in the S&P 500 was broken in 2008.
As we’ve learned from Bitcoin, when parabolic advances are broken, assets can decline 80% or more according to technical performance data from experienced traders.
But thanks to the Fed propping up markets during the Great Recession Bitcoin was born during, the S&P 500 was barely dented, and kept on trucking along.
RELATED READING | GOLD CHART SHOWS WHY BITCOIN IS THE FASTEST HORSE IN RACE AGAINST INFLATION
The last major crash and money printing spree prompted the creation of the first-ever cryptocurrency. Over ten years later, the asset has matured and now the perfect storm is here that could fuel its next major rise.
If capital comes pouring out of the stock market, all while USD collapses under the weight of the Fed’s growing balance sheet, scarce assets like gold and Bitcoin could benefit significantly.
These hard assets theoretically perform best during periods of hyperinflation.
Combined with capital needing somewhere to go, if Bitcoin prices show any sign of positive growth during any bubble popping in equities, it could not only lead to incredible FOMO from investors, but it could start the beginning of BTC replacing USD as the world’s next global reserve currency.
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A crypto manager said that the much-awaited Bitcoin ETF in the US would likely be delayed until the milestone is reached.
The post Bitcoin ETF unlikely until market cap reaches $2 trillion, fund manager says appeared first on CryptoSlate.
Mark Mobius, an emerging markets fund manager and the founder of Mobius Capital Partners, said that if bitcoin continues to grow at the current rate, he would consider investing in the dominant crypto asset.
American billionaire investor, hedge fund manager, and philanthropist Stanley Druckenmiller made it known that he has zero interest in…
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Allianz global strategist believes Bitcoin is an imagination He said that he would not invest in Bitcoin Neil Dwane, portfolio manager and global strategist at Allianz, said that he would not purchase Bitcoin (BTC).
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Frankfurt-based multinational investment bank Deutsche Bank has seen its stock price decline over the past five years with no signs of revival. Popular cryptocurrency fund manager Anthony Pompliano says that it would be interesting if people put their bitcoin together and bought it out.
Former hedge-fund manager and author, James Altucher, confirmed his $1 million bitcoin prediction, but admitted the timeframe may have slipped. Altucher explained the claim during an interview on Kitco news, a precious metals specialist.
A small group of deep-pocketed traders has been able to exploit market sentiment and set the trajectory for crypto prices, according to one asset manager. Travis Kling, Founder and Chief Investment Officer at Ikigai Asset Management, believes that there could be sufficient momentum to take Bitcoin (BTC) past its all-time high.
Grayscale Bitcoin Trust (GBTC) is now buying up about 21 percent of newly mined BTC monthly suggesting increasing demand from Wall Street. Insatiable Wall Street Appetite for Bitcoin According to a Wednesday (May 29, 2019) tweet from Bitcoin analyst Rhythm, Grayscale bought more than 11,000 BTC in April 2019.
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By CCN: Bitcoin price will hit $30,000 by the end of 2019, according to Kenetic Capital co-founder Jihan Chu. In an interview with Bloomberg, he points to three bullish factors including the upcoming bitcoin halving, the disappointment of tech IPOs, and the likes of Facebook and Fidelity embracing crypto.
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The long-standing debates about the credibility, general acceptance and adoption of cryptocurrency is nowhere near its end. People have in the past argued both ‘for' and ‘against' mainstream adoption of digital currencies.
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Bitcoin (BTC) ranging Brian Kelly says his fund is hoarding BTC ahead of next year’s halving It’s a sea of red in the top-10 and Bitcoin is down 4. 8 percent from last week’s close. However, that doesn’t imply weakness because Brian Kelly, a crypto fund manager, says many are hoarding in expectation of 2020 scarcity.
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The post Bitcoin Halving Might Raise BTC Price, Says Fund Manager appeared first on Invest In Blockchain.
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The Australian Federal Police (AFP) has charged a government employee alleged to have misused government IT infrastructure for personal cryptomining operations, per a press release.
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The post Breaking: Bitcoin Commercial To Be Aired at US National TV Today appeared first on Invest In Blockchain.
Veteran investor Mark Mobius publicly announced he had U-turned on Bitcoin May 15 as cryptocurrency markets continue to boom. Mobius: Bitcoin Can ‘Transfer Money Easily And Confidentially’ In a fresh interview with Bloomberg, the emerging markets fund manager and founder of Mobius Capital Partners said he saw a global appetite for Bitcoin in particular – and that this would continue.
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Travis Kling, Chief Investment Officer (CIO) at Ikigai Asset Management believes bitcoin (BTC) is in for a significantly long rally. In a recent discussion on the TD Ameritrade Network, May 13 2019, the hedge fund manager says recent policy decisions by major central banks around the world will cause capital flight into the cryptocurrency marketRead MoreRead More.
The first quarter of 2019 was bullish for the digital asset management firm Grayscale Investments and the company is gearing up to have another run. According to a first quarter “Digital Asset Investment Report” from the company, published on May 13, 2019, product inflows from Grayscale Investments grew by 42 percent over Q4 2018.
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Michael Novogratz, former Wall-Street hedge fund manager and CEO of Galaxy Digital, is no stranger to bitcoin price prediction. He believes that BTC ‘should’ reclaim its previous $20,000 all-time in next 18 months.
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Fidelity Investments, the fifth-largest asset manager with $2. 5 trillion in assets under management, will offer bitcoin trading for institutional clients “within a few weeks,” according to Bloomberg.
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Answering whether or not cryptocurrencies can potentially replace gold, Adam Perlaky, Manager of Investment Research at World Gold Council, compared recent stats of both assets. In a blog on May 2, 2019, he opined that cryptocurrency is a promising technology, but far from being a match to gold.
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By CCN: Fidelity Digital Assets, a subsidiary of the world’s fourth-largest asset manager with $2. 46 trillion in assets under management, said in a research paper that institutional investments in bitcoin and other crypto assets are likely to increase over the next five years.
Grayscale Investments, the world’s largest cryptocurrency asset manager, says Bitcoin (BTC) is the new gold in their new Bitcoin…
The post Bitcoin Is the New Gold, Says Grayscale Investments appeared first on Invest In Blockchain.
We’re a month and some change away from Bitcoin 2019: a conference made by Bitcoiners, for Bitcoiners. The conference will rekindle the same spirit of a similar Bitcoin conference that ended five years ago.
Bitcoin price is consolidating above the $95,000 support zone. BTC must settle above the $100,000 level to start a fresh increase in the near term. Bitcoin started a fresh increase from the $94,200 zone.
Bitcoin price started a fresh upward move above $100,000. BTC is facing resistance at $103,000 and might aim for an upside break. Bitcoin started a decent upward move above the $100,000 zone. The price is trading below $103,200 and the 100 hourly Simple moving average.
Bitcoin price settled above the $100,500 resistance zone. BTC is consolidating gains and might aim for a fresh increase above the $105,000 zone. Bitcoin started a downside correction from the $106,800 zone.
Bitcoin price started a short-term downside correction from the $106,250 zone. BTC is consolidating above $100,000 and might aim for a fresh increase. Bitcoin started a downside correction from the $106,250 zone.