Despite a number of investors and asset managers urging people to buy “hard assets” such as bitcoin (BTC) and gold as protection against the love of the central bank for printing money after the COVID-19 crisis, a asset manager for a contrary approach, the best assets to invest in now are shares of ‘traditionally stable companies’.
In an interview with CNBC, Peter Mallouk, president of wealth manager Creative Planning, said that while many younger people are attracted to what he calls “speculative assets,” including cryptocurrencies, gold, and cannabis stocks, a bear market as we now “puts it all up for sale “.
“We have companies that we know aren’t going anywhere and sell half. There is no need to enter the speculative world when half-selling really strong investments, perhaps some of the strongest investments in the world, are sold, ”said Mallouk.
The interview was published today, but recorded in mid-March, Peter Mallouk wrote on Twitter.
Shares have partially recovered since mid-March, but some investors are warning that there may be another crash.
BTCUSD (blue line) vs. the S&P 500 stock index (black line)
Mallouk’s advice contradicts the advice recently given by other investors. Among them is Alex Mashinsky, venture capitalist and CEO of crypto lender Celsius network, which recently urged savers to own “much more gold and much more bitcoin”. Similar opinions have also been shared by people such as legendary hedge fund manager Paul Tudor Jones, who recently revealed that he is between 1% and 2% of his Tudor BVI bitcoin futures fund.
In the interview, Mallouk said he defines an asset as “speculative” when it “generates no income and earns you as an investor,” repeatedly referring to gold, silver, and bitcoin as speculative. Instead, he said that this type of asset is bought “with the idea that someone will pay more for it in the future,” while it is also attractive because many young people consider them “sexier.”
Watch the interview with Peter Mallouk below: