Famous Billionaire Warns: Crypto Investors Beware of These Two Risks!

Billionaire venture capitalist Chamath Palihapitiyawarned investors against rising “tail risks” in the markets.

Correctly predicting the cryptocurrency crash in 2021, Palihapitiya stated in an interview that investors are currently facing two headwinds. The first of these, S&P 500 linked to the probability of lower-than-expected earnings for

We are faced with two problems. First, if you really think about it, if I told you 13 months ago that we’d be sitting here today and the Fed was going to raise plus or minus 500 basis points in nine months, you’d think that was crazy. So we are entering this phase of awareness, all of us trying to understand how to do things differently and what this means for the investments we are currently making in the land.

Personally, I think this increases the risk of queuing. I’m pretty cautious because I think there is left tail risk… The risk is that S&P 500 earnings are somewhere around 180, 185 and suddenly the S&P is 3,200, 3,300 points.

Koinfinans.com As we reported, analysts are of the opinion that the S&P 500 will gain 291.48 points. According to current data, the transaction score is around 3982.23.

The second risk is FedThe probability of keeping interest rates high.

But there’s also the risk of a high tail, for example if the Fed dovetails everybody will capitulate because things seem to be slowing down and all of a sudden we have to deal with final rates of 4% to 5% on a more consistent basis. Because if Fed Chairman Powell now turns off the gas, then inflation somehow stays around.

Both paths lead to repricing assets, just in very different path dependencies and those risks are a bit higher for me and so I tried to be pretty conservative and be in Fairway.

You can follow the current price action here.

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