Cryptocurrencies
Investors should modestly underweight equities in their portfolios and look to turn more aggressively defensive once the whites of the recession’s eyes are visible. We think that will happen within the next few months.
The pound will reach $1.60 if ‘America’s Brexit’ cancels out ‘Britain’s Brexit’. Meanwhile, the flight from the fiat dollar to non-fiat bitcoin will enable the preeminent cryptocurrency to reach $200,000+.
This week, our three screeners cover equity plays on the run-up in gold prices, a hotter-than-expected US inflation print, and calling the top in Bitcoin.
In this report, we reassess our bullish stance on crypto from early 2023, following Bitcoin’s recent all-time highs. While institutional adoption is broadening, there are also signs of excessive exuberance, speculation, and optimism. Given these conditions, a near-term correction appears likely. We are booking profits and will look to re-enter the market at $75,000.
The value of both gold and bitcoin comes from the collective belief that they are the non-confiscatable assets to own in a fiat monetary system, as an insurance against hyperinflation, banking system failure, or state expropriation. As global wealth rises, the value of both gold and bitcoin will also rise. But as bitcoin takes market share from gold, bitcoin has considerably more upside than gold, with an ultimate destination of $200,000+. Plus: 10-year T-bonds and Portuguese stocks are tactically oversold.
