Guggenheim CIO Scott Minerd: Investors Should Put a Few Percent Into Bitcoin
Guggenheim Chief Investment Officer (CIO) Scott Minerd believes all investors should allocate a few percent of their portfolio to Bitcoin.
Speaking in a Bloomberg interview, Minerd suggested a 2% portfolio allocation could quite easily turn into 20%, hinting at the potential Bitcoin has to rise.
‘Two percent of your portfolio will be twenty percent of your portfolio before this is over,’ said the Guggenheim CIO. ‘So, you don’t want to get too overweight, but certainly an allocation of a couple of percent of your portfolio seems to be a prudent play.’
Time To Take Some Earnings Off The Table?
However, Minerd did suggest we were ‘moving into a speculative frenzy’ in the short term, and hinted at exchanges’ inability to to meet demand due to rising retail interest.
Minerd said it might be a shrewd move to take some earnings off the table due to the frenzy, but remains bullish long term.
The Guggenheim CIO, who said last year that a fair valuation of Bitcoin is around the $400k mark. A $400k Bitcoin price would bring the overall market cap close to gold’s, which brought Minerd to his valuation.
Minerd explained how he sees Bitcoin as an improvement on gold, highlighting its portability and spendability as two examples.
The Guggenheim CIO also mentioned NFL star Russel Okung’s decision to be paid half of his salary in Bitcoin, suggesting it was proof of Bitcoin’s acceptability.
Minerd was pressed on whether Guggenheim had already allocated some of its funds into Bitcoin, but the CIO said they were waiting for feedback from their clients before investing with the mutual funds, but had moved some into their private funds.
Scott Minerd Joins The List of Wall Street Heavyweights
Scott Minerd isn’t the only Wall Street heavyweight to publicly back Bitcoin. Last year saw some of the biggest names on Wall Street lay their weight behind Bitcoin.
Paul Tudor Jones is arguably the biggest name on Wall Street, and the legendary hedge fund calling Bitcoin the ‘fastest horse’.
Tudor Jones has publicly spoken a few times since, and always mentions his fears about the Fed’s desire to print money, and how Bitcoin and gold will absorb much of the newly created value.
Stanley Druckenmiller is a another Wall Street legend who has publicly backed Bitcoin. Druckenmiller also believes Bitcoin and gold will absorb much of the money being printed, as investors look for a safe store of value.
‘If the gold bet works, the Bitcoin bet will work better,’ said Druckenmiller. ‘I’m a bit of a dinosaur, but I have warmed up to the fact that Bitcoin could be an asset class that has a lot of attraction as a store of value.’
A Few Percent In Bitcoin Will Benefit Any Portfolio
With governments printing unlimited amounts of “free cash” savvy investors know scarce assets are the perfect hedge.
Paul Tudor Jones, Stanley Druckenmiller, and Guggenheim CIO Scott Minerd have all publicly backed Bitcoin, and the herd is gaining pace.
They see Bitcoin as the ‘fastest horse’ and are recommending their clients allocate a couple of percent into Bitcoin.
Allocating two percent of a portfolio to Bitcoin, might end up being the wisest of moves for any investor, but surely four percent would be wiser?