Novogratz: dangerous time to be in stocks, Bitcoin has more advantages than gold
Galaxy Digital CEO Michael Novogratz explains why it’s a dangerous time to be in the stock market right now, ahead of the US presidential election. While bearish on the dollar, Novogratz is bullish. with bitcoin and gold, but believe that bitcoin has more advantages than gold.
Dangerous time to be in the stock market, buy Bitcoin
Billionaire investor and Galaxy Digital CEO Michael Novogratz explained his take on the best investments as the November US presidential election approaches on Wednesday’s episode of CNN’s Markets Now show.
“I think in the short term we already saw the peak on the Nasdaq, we saw the peak on Apple, we saw the peak on Tesla,” he said, adding that heading into the November presidential election, the Nasdaq “can easily trade at 10,000. , another 10%, 11% down from that point. “
Emphasizing that the elections are only 40 days away, Novogratz said, “I think between now and the elections, volatility remains high and risk is eliminated.” He mentioned the following:
“I think this is a really dangerous time to be in the market. I have taken a lot of risks and am hoping for something better, clearer and better entry points. I think selling the dollar will be a trend that continues ”.
“There will be a time to buy stocks again, but I think with this election, literally 40 days away, if Biden wins, he will raise taxes and increase capital gains tax, more specifically. The market is not going to digest it so well, “he said, adding:” I think Biden is going to win. “The billionaire investor further revealed:” I’m short on what will happen to Nasdaq, I’m short on some Apple, and I’m short with Tesla. “
On the subject of bitcoin, he highlighted that the cryptocurrency has some correlation with the Nasdaq and the S&P, but said: “I don’t think it is a lasting correlation.”
To illustrate his point, he described: “If the Nasdaq fell 5% today, bitcoin would probably be lower, not higher. But I think you will see those correlations break down. The macro story is very promising for shorting the dollar, betting on gold, and betting on cryptocurrencies. And we’re seeing more and more adoption. ”When asked if an average investor should own bitcoin, he stated the following:
“Of course. The average investor should have 1% to 3% of their portfolio in bitcoin. It is an amazing challenge “
He continues by saying the following: “In my life and in the history of independent Central Banks, we have never had an environment in which the Central Bank and the Treasury are no longer independent. They are the same thing. The treasury prints and the Central Bank buys. That is why we do not know what will happen. The level of uncertainty around the fiat currency, around the dollar, around inflation has to be significantly higher than at any other time in our lives. “
Novogratz also spoke about gold and the reasons why he prefers bitcoin. “I think that gold and bitcoin are very similar assets. The reason I like Bitcoin better is that it is much closer in terms of the adoption cycle, “he disclosed the following.” If you want to buy gold, you know how to buy it. It is still a headache to buy bitcoins. And then there are firms like ours and Fidelity and a lot of them are working overtime to make it easier for people to buy and feel safe acquiring bitcoins. “
While he believes the price of gold will increase, Novogratz expects the price of bitcoin to rise to “$ 50,000, 5X from here” in two years. The billionaire investor concluded by saying the following:
I am a true bull in gold. I am a real bull with bitcoin. I think bitcoin has more advantages.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.