Scott Minerd, Global CIO at investment firm Guggenheim Partners, tweeted his thoughts on the crypto crash, hinting at a similar fate for the stock market. “Crypto told us in advance that #actions were going to be in trouble.
He further stated that until crypto funds, there will be no relief for any other asset class. Minerd says, “Crypto has proven not to be a diversified asset class or a safe haven. This is a high beta game on risk.
While very few agreed with Minerd’s thesis, Carl Quintanilla of CNBC the celeb responded with a similar story they shared in mid-May. “We have found a use for #Bitcoins…as a signal for when stocks will bottom out,” Quintanilla responded to Minerd’s tweet.
Meanwhile, a few crypto enthusiasts criticized the tweet and argued that the crypto crash had nothing to do with the falling stock market.
Nevertheless, a majority of people said that crypto is not a real asset, just a price, and therefore cannot be trusted with anything. Stocks, on the other hand, have fundamentals, earnings, and trading performance that predict their future trajectory.
On the Federal Reserve’s position to bring the inflation rate down to 2%, Minerd believes that the economy will inevitably have to suffer financial constraints to reach this state. Minerd recalled: “The United States has never had #inflation fall by more than two percentage points in one year without #recession.”
He even said that the company’s internal models are currently biased towards holding bonds rather than holding stocks.
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