Digital Assets: Novogratz Prefers Bitcoin To Gold; Is Short On Stocks
With the U.S. presidential election just 40 days away, stocks are a dangerous place to be in.
Michael Novogratz, the founder, CEO, and Chairman of Galaxy Digital has a bearish view of stocks and the dollar and is bullish on gold and bitcoin. But he favors bitcoin over gold for its potential greater upside. (Bitcoin.com)
Investing as elections loom – where to go short
Novogratz warned of high volatility and a risk-off mindset in the days leading up to the U.S. presidential election.
“I think it’s a really dangerous time to be in the market,” he said. “I’ve taken a lot of risk down and kind of waiting for better, more clarity and better entry points … I do think selling the dollar will be a trend that continues.”
Novogratz feels we’ve seen the highs in the Nasdaq, Apple (NASDAQ: AAPL), and Tesla (NASDAQ: TSLA). Leading up to the election, the Nasdaq “can easily trade down to 10,000, another 10%, 11% down from here,” he warned.
He predicts a Biden win and a rise in taxes, especially capital gains taxes; that’s not going to be good for the market.
Given these bearish views, it is unsurprising that he is short the Nasdaq, Apple, and Tesla.
…And where to go long
Novogratz is extremely concerned about the macroeconomic downside of money printing.
“In my lifetime and in the history of independent central banks, we have never had an environment where the central bank and the treasury are no longer independent. They are the same thing. The treasury prints, and the central bank buys.”
“The macro story is so promising for shorting the dollar, going long gold, and going long crypto,” he urged. “And we are seeing more and more adoption.”
Bitcoin – 5X!
He recommended that the average investor put between 1% to 3% in bitcoin because “it’s an amazing hedge.”
Though Novogratz is bullish on both gold and bitcoin, he prefers the latter because “it’s much earlier in the adoption cycle.”
His call on bitcoin: “$50,000, 5X from here” in two years.