- Expect heightened inflation as early as 2021, Morgan Stanley’s executive states.
- Millennials prefer Bitcoin to gold in investments.
Morgan Stanley’s executive states Bitcoin (BTC) and gold are favorable options for investors to hedge against the central banks’ expansionary monetary policies. Speaking on a First Move with Julia Chatterley’s interview on CNN, Morgan Stanley’s head of emerging markets and chief global strategist, Ruchir Sharma, further explained that when it comes to asset investing, more millennials are showing an affinity to the digital gold than its physical counterpart.
As global health teams work to kill off the COVID-19 pandemic, central banks rushed to their printers to print money to stimulate their economies. According to Sharma, the increased monetary expansion policies by the central banks will cause inflation in the economy – predicting the United States could experience it as early as 2021.
“To have about 5% or so of your portfolio in #Gold is not a bad idea & if you’re a bit more adventurous… #Bitcoin & other #cryptocurrencies,” says Ruchir Sharma of @MorganStanley who says commodities offer better than stocks.
Full convo here 👇🏻 pic.twitter.com/CvLuKtjFSD
— Julia Chatterley (@jchatterleyCNN) September 8, 2020
The money printing, expansionary monetary, and fiscal policies are setting investors towards looking for more stable assets to invest in, he continued.
“There is this lingering feeling out there that given what central banks are doing in terms of printing so much money, there is a search for alternative assets.”
The seasoned investor advised investors to look at gold as a possible investment asset to cover themselves from the impending inflation. He claims having “about 5% of gold in your portfolio is not a bad idea.” However, for the younger generation and more risky investors, cryptocurrencies are their choice of an investment asset.
“If you’re a bit more adventurous — and I guess it’s more to do with demographics — then obviously search for Bitcoin and other cryptocurrencies. […] I think some of the older [investors] are still buying gold, and millennials are buying more of the Bitcoins and the cryptocurrencies.”
According to a report on BEG in March, over $970 billion in wealth could move into the crypto market as the generational shift happens in the U.S.