Investment Advice for Gold, Altcoins and Bitcoin from the Fund Manager!

Follow the 4-step “all-weather” investment strategy for big returns in 2022 across stocks, crypto, fixed income and commodities, says the founder of an investment advisory firm. Mark Yusko, founder of Morgan Creek Capital, shares his four-part investment strategy. Portfolio diversification is a universally accepted key to investing, especially in challenging years. His recommendations examining how to handle investments in stocks, crypto, fixed income and gold cryptocoin.com we examine below.

Advice for gold, crypto and other investments

Mark Yusko, founder of North Carolina-based investment advisory firm Morgan Creek Capital, agrees with two universally accepted investment principles: maintain a long-term horizon and diversify. But their views on how to do this differ. There’s room for ultra-high-risk Chinese tech stocks and rock-solid pipeline companies in Yusko’s “all-weather portfolio” for the “stormy seasons” that 2022 may bring. There is also room for both gold and digital gold.

“People should really think about portfolios that have an annual and multi-year outlook as opposed to ongoing day trading,” Yusko said in an interview. According to him, no annual vision of the future in 2022 would be complete without an idea of ​​how the Federal Reserve will deal with inflation approaching 40-year highs. Yusko also said that whether the US central bank can relax its pandemic-era contingency policies while keeping the price increase in check and pleasing investors is a key story to watch this year. Here’s what Yusko says on the subject:

We are indeed at the end of a historic period of liquidity provision by global central banks. The whole world is full of liquidity. And this has impacted valuations of all assets, from stocks to fixed income, currencies, commodities, home prices, collectibles, cryptocurrencies. Everything was in this wild environment.

To simplify this complex environment, Yusko outlined the 2022 outlook for fixed income, currencies, cryptocurrencies and commodities, and specific steps investors can take to achieve diversification.

Stocks. For years, investing in a broad-based stock index was an almost foolproof strategy. But according to Yusko, the Fed’s decision to step off its famous accelerator and curb its easy money policy will make that dynamic a thing of the past. It’s time to be picky about stocks. “We believe US stocks, especially FANGMAN stocks, are overvalued. Therefore, we think that high-growth names will struggle in a risk-free environment, in an environment that consumes liquidity.”

Energy shares are coming off a phenomenal year (the industry is up 53% in 2021) but Yusko sees more gains for the industry as oil prices stabilize thanks to steadily recovering demand. He said his favorite name in the market is Diamondback Energy (FANG). But in Yusko’s view, the big players in the industry, including Alibaba, Tencent and JD.com, are value plays, not value traps. Attention is guaranteed, but the field is full of opportunities.

Fixed income. In a regime of high inflation where interest rates are rising, Yusko said US Treasuries are falling out of favor. “I probably wouldn’t own conventional bonds because I was worried about rising interest rates. So I would have bond substitutes,” he said. An alternative to investment grade bonds is the Alerian MLP ETF (AMLP), which holds parent limited partnerships (public entities taxed as partnerships rather than corporations). The names in the fund traded on the stock exchange come primarily from the energy sector.

Another way to find fixed income is with Barings BDC (BBDC), an externally managed, closed-end investment firm regulated as a business development firm. Yusko said that in essence it lends to small businesses and therefore depends on the strength of the economy. “We think the wind is coming from behind as economies recover, and we’re returning to reopening after the Omicron wave,” Yusko said. said.

Currencies and cryptocurrencies

Turbulence could hit financial markets in 2022, with the Fed withdrawing its emergency monetary policy. He advises against owning the dollar, yen or euro, which he believes will weaken. Yusko says:

In times of stress you want to have currencies that are not fiat currencies. I would have cryptocurrency instead, because as currencies – fiat currencies – weaken, cryptocurrencies will continue to rise in value.

Yusko prefers exposure through Grayscale’s Bitcoin Trust (GBTC) and Ethereum Trust (ETHE), which he says offer up to 20% discounts on underlying assets for those who can digest the wild volatility that cryptos inevitably bring. Annual fees are 2% and 2.5% respectively, but trusts allow investors to purchase them from their brokerage accounts.

Commodities

Some investors believe that Bitcoin is for millennials and millennials, while gold is for “baby boomers” (born 1946-1964). However, Yusko said there is no reason for the two entities to be mutually exclusive. It’s been a tough decade for yellow metal. Gold prices have risen only 12.5% ​​since January 2012 and have remained virtually unchanged over the past year despite inflation reaching 39-year highs. What in theory should have been a once-in-a-generation catalyst for gold did little to move the asset. But for Yusko, the SPDR Gold Trust (GLD) and VanEck Gold Miners ETF (GDX) are the most ideal ways to gamble on the market. “The price of gold fell, but the relative price of mining companies fell further,” Yusko said. In addition, Yusko thinks the Invesco DB Base Metals Fund (DBB) could take action as a major shift to electric vehicles boosts demand for base metals like lithium and cobalt.

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