Ruchir Sharma, chief strategist at Morgan Stanley Investment Management, said that alternative investment vehicles such as gold and bitcoin will continue to rise in value amid the endless supply of money from central banks.
Millennials are buying up cryptocurrencies
In an interview on CNN, Sharma shared his opinion on the current economic situation in the world. In particular, he noted that the world economy will recover next year, which will lead to an increase in bank rates. This can lead to the fact that the shares of many technology companies will decline in value. Therefore, today it is worth thinking about new ways of investing, since the endless printing of “cheap money” by the US Federal Reserve System will ultimately lead to a decrease in the value of the dollar.
Speaking about alternative investment assets, the chief strategist of the investment company primarily refers to gold and bitcoin, which have strengthened against the backdrop of the coronavirus pandemic. When asked by a journalist about the most profitable investment, Sharma replied that “this is the choice of generations.” In his opinion, older people still buy gold, but millennials prefer to invest in bitcoin.
However, he noted that “gold is a very speculative asset”, stressing that “in the long term, stocks are much better than gold.” Sharma also cited an article in The New York Times, which stated that over the past 100 years, inflation-adjusted US stock returns have been about 7% per year, compared to 1% for gold.
Gold and Bitcoin are the perfect solution
Another prominent investor and author of Rich Dad Poor Dad, Robert Kiyosaki, shares Ruchir Sharma’s opinion. He is confident that the dollar can no longer be considered an attractive investment vehicle due to the deplorable state of the US economy. It is being replaced by silver, gold and bitcoin.
Kiyosaki himself does not deny that he invests in gold, silver and partly in bitcoin. And although crypto coins have not yet gained widespread acceptance in society, the bestselling author believes that the number of crypto investors will increase every year.
Another crypto expert, Mike Novogratz, shares the idea of investing in gold. The head of the digital bank Galaxy Digital advises storing more gold in the investment portfolio than bitcoin due to the high volatility of the virtual asset. Novogratz noted that bitcoin will surpass gold in economic parameters, at least due to the fact that the virtual asset is still at the beginning of its development.