Fun

Morgan Stanley Strategist Recommends Bitcoin as Central Banks Ramp Up Money Printing

News Feed - 2020-09-13 09:09:18

Morgan Stanley Strategist Recommends Bitcoin as Central Banks Ramp Up Money Printing


Morgan Stanley Investment Management’s chief strategist and head of emerging markets has recommended bitcoin as an alternative investment to stocks amid central banks’ massive money printing policies. He says that alternative assets, like gold and cryptocurrency, could keep doing well while stocks struggle.Morgan Stanley’s Strategist Discusses Stocks, Gold, and Bitcoin


Head of Emerging Markets and Chief Global Strategist at Morgan Stanley Investment Management Ruchir Sharma discussed stocks, gold, and also bitcoin in an interview with CNN on Tuesday. The Indian investor and fund manager joined Morgan Stanley in 1996.


Sharma began by explaining that tech stocks and risk assets would really be hurt by rising interest rates. Despite the Federal Reserve’s indication, the strategist believes that interest rates could start to rise “more quickly than we think, possibly even as early as next year.” He explained that we have been seeing “such high stock prices even though the economy is very weak.” Next year, he expects to see the opposite, as the economy rebounds and the covid-19 pandemic is behind us. However, he noted that stocks will struggle “just because of the incredible support they have got from liquidity and interest rates and that support goes away next year.”


When asked about gold and cryptocurrency, Sharma said “it’s a generational thing,” adding that some older investors are still buying gold whereas “some of the younger ones are, the millennials are buying more of the bitcoin and cryptocurrencies.” He added:Generally I think what that’s telling you is that there is this lingering feeling out there that given what central banks are doing in terms of printing so much money there is a search for alternative assets, I think that these assets could keep doing well.


“Gold, in particular, does very well when interest rates, adjusted for inflation, are negative and I see that environment carrying on for a while,” the chief global strategist predicted, adding that even when inflation comes back, central banks are going to be far behind the curve to do anything about it quickly.




However, he said that “Gold is a very speculative asset,” emphasizing that “in the long term, stocks do much better than gold.” He cited an article on The New York Times suggesting that in the last 100 years, the inflation-adjusted return on U.S. stocks is about 7% a year, compared to 1% for gold.


Nonetheless, Sharma still feels that in the next three to five years, “gold is relatively ok.” Reiterating that “central banks are printing so much money and we want some safety out there,” he elaborated:To have about 5% or so of your portfolio in gold is not a bad idea, and if you’re a bit more adventurous, and I guess it’s more to do with demographics, then obviously search for bitcoin and other cryptocurrencies.


Sharma is not the only one who believes that central banks’ mass money-printing could boost the price of gold and bitcoin. News.Bitcoin.com previously reported on Galaxy Digital CEO Mike Novogratz and an analyst with Weiss Crypto Ratings sharing the same sentiment. Moreover, Devere Group CEO Nigel Green expects bitcoin to break out this year and macro strategist Raoul Pal believes that bitcoin beats gold on every single measure.


Some analysts have predicted that the outcome of the November presidential election could collapse the U.S. dollar, boosting the price of gold and bitcoin. As the Federal Reserve shifts policy to “push up inflation,” some companies have already turned to bitcoin as a hedge against inflation, such as the Nasdaq-listed Microstrategy.


What do you think about Sharma’s recommendations? Let us know in the comments section below.Bitcoin Hashrate Ramps to 130 Exahash Amid Next-Generation Miner ShortageNEWS | 6 hours agoUS Sanctions Russians Allegedly Using Cryptocurrency to Influence Presidential ElectionNEWS | 12 hours agoTags in this storymorgan stanley bitcoin, morgan stanley btc, morgan stanley crypto, morgan stanley cryptocurrency, morgan stanley gold, morgan stanley recomendations


Image Credits: Shutterstock, Pixabay, Wiki CommonsSpot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

Russian Banks Told to Track Crypto-Related Transactions Amid Currency Restrictions
Russian Banks Told to Track Crypto-Related Transactions Amid Currency Restrictions Bank of Russia has recommended commercial banks pay heightened attention to their clients’
Bank of Russia to Collect Data on Crypto-Related Transactions Between Individuals
Bank of Russia to Collect Data on Crypto-Related Transactions Between Individuals The Central Bank of Russia (CBR) plans to obtain information from commercial banks pertaining to s
Coinbase, KuCoin, others join in Turkey crypto license application
Amaka Nwaokocha50 minutes agoCoinbase, KuCoin, others join in Turkey crypto license applicationAs the CMB continues to update the list and companies work to meet regulatory requirements, the Turkish crypto market is pois
Ana Paula Pereira8 hours agoSolana’s Cardinal shuts down, citing economic conditionsAccording to the protocol’s closing schedule, part of the operations will cease on July 19, while the withdrawal period ends on Aug.
Bitcoin on Exchanges Drop to Lows Not Seen Since 2018, Long-Term Holders Realize Profits
Bitcoin on Exchanges Drop to Lows Not Seen Since 2018, Long-Term Holders Realize Profits According to data, bitcoin balances on exchanges are shrinking a great d
Web3 gets its own version of Trustpilot to bring users and creators together
Savannah Fortis11 hours agoWeb3 gets its own version of Trustpilot to bring users and creators togetherA new decentralized application aims to revolutionize product feedback and user engagement in the Web3 space by foste
Mythical Games Raises $150 Million in Series C Funding Round Led by A16z
Mythical Games Raises $150 Million in Series C Funding Round Led by A16z Mythical Games, a blockchain-based gaming company, has raised $150 million in its series C funding round. T
Elon Musk drops lawsuit against OpenAI CEO Sam Altman
Brayden Lindrea7 hours agoElon Musk drops lawsuit against OpenAI CEO Sam AltmanMusk’s decision came one day before a federal judge was set to decide whether to dismiss the case or allow it to proceed to the next stage.
William Suberg14 hours agoBTC price tracks $26.5K as Bitcoin speculator supply hits 12-year lowBTC price action stays firmly within an established range, while analysis shows that overall Bitcoin investor composition is
US Bitcoin miners hodl in expectation of BTC price rises
Robert D. Knight10 hours agoUS Bitcoin miners hodl in expectation of BTC price risesUS mining firms are confounding pre-halving expectations by hodling the BTC they mine.3910 Total views9 Total sharesListen to article 0:
Expect Bitcoin ETF options to launch before 2025
Alex O’Donnell1 hour agoExpect Bitcoin ETF options to launch before 2025You can expect Bitcoin ETF options to begin trading in the United States before 2025.491 Total views8 Total sharesListen to article 0:00OpinionOwn
How to generate passive income with cryptocurrency airdrops
Tobias Vilkenson43 minutes agoHow to generate passive income with cryptocurrency airdropsHunting for crypto airdrop opportunities and cashing in on airdrop rewards can be a thrilling way to bag some extra coins, but bewa