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Hedge fund manager Paul Tudor was a guest on CNBCâs âSquawk on the Streetâ segment Monday morning with plenty to talk about, including meme stocks, how Bitcoin fits in with his stock portfolio, and his take on the latest inflation data.
Meme stocks arenât for everyone
Concerning the meme-stock craze, Tudor Jones believes that retail investors should follow the investment thesis they desire, regardless of what it may be. Personally, he said he would not pursue the type of investment strategy that dominates forums like Reddit. He added:
For me, I want to have a sound investment thesis other than just necessarily running shorts in or necessarily doing things simply because of the fact it is extraordinary and hasnât been done before.
As a whole, he said the stock market is trading at a premium valuation compared to the broader economy. This creates a potential scenario where the top has been reached and if history repeats itself, we could see a signficant correction coming.
Bitcoin is a âgreat diversifierâ
Although traditionally known as a stock picker, Tudor Jones said there is room for 5% of his portfolio to include Bitcoin. He said that Bitcoin can serve as a âgreat diversifierâ for his portfolio and cryptocurrencies as a whole offers âa story of wealth.â
He said that he likes putting his money in something honest, reliable, consistent, and 100% certain and reliable, and this can apply to Bitcoin. He further claimed that he likes investing in Bitcoin because it means heâs investing in certainty. He explained:
Bitcoin is math, and math has been around for thousands of years, and two plus two is going to equal four, and it will for the next two thousand years. So I like the idea of investing in something thatâs reliable, consistent, honest, and 100% certain.
While Bitcoin accounts for 5% of his portfiolio, another 5% is invested in gold, 5% in cash, and 5% in commodities. Heâs not so sure about the other 80% leftover as of right now. He says that heâll wait and see what action the Federal Reserve will take in the upcoming policy meeting as its actions will âhave a big impact.â
Monetary and fiscal policy is âcrazyâ
Tudor Jones also said the current mix of fiscal and monetary policy is âcrazyâ to the point where it might even be the craziest since the creation of the Federal Reserve. He states that, given how the economy looks right now, the combination of easy monetary policies and high government spending goes against economic orthodoxy.
He further claims that high prices in both gold and cryptocurrency result from people losing faith in the Federal Reserve. He says that itâs âdisingenuousâ for the Federal Reserve to look at inflation as âtransitory.â This stance has led to people questioning the central bankâs market capabilities.Â
The post Paul Tudor Jones talks meme stocks, asset allocation, and inflation appeared first on Invezz.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.