Investors flee shaky dollar
Morgan Creek Capital Management CEO, Mark Yusko speaking on CNBC Fast Money gave prospective on FED’s increasing debt and the dollar devaluation .
While the dollar remains the global reserve currency, it has taken a severe hit this year. Several major investors have advocated against holding physical cash, whether through interviews or their actions.
Hedge fund billionaire Ray Dalio said in January that “cash is trash,” adding that investors would only survive 2020 if they built diversified portfolios.
Warren Buffett has also made significant moves out of the dollar. In August, reports confirmed that Buffett’s investment conglomerate, Berkshire Hathaway, had invested $6.25 billion for a 5 percent stake in five of Japan’s largest trading houses. With the trading houses set to expand their portfolios globally, Buffett had locked into a new long-term investment.
The move also came two days after the Federal Reserve announced that it would allow inflation to rise above the planned two percent maximum. The announcement hit the dollar even more, with the USD currency index dropping to new depths at the time.
Max Keiser, a top cryptocurrency trader and commentator, shared his thoughts on Buffett’s moves. In a tweet, he explained that the Oracle of Omaha had seen cracks in the dollar and was jumping ship. The expert trader added a forecast for digital assets, saying:
“USD is trending lower today, about to break key support. Bitcoin – Gold – Silver Will all make new ATH in the near term.”
With the dollar currently in uncharted territory, investors have sought a safe haven all year. So far, Bitcoin has shown the most potential for this. The asset is testing its all-time high as it is and is on course to break $20,000.
Going by Yusko’s logic, this trend could very well go on and leave the leading cryptocurrency miles above its previous all-time high.