In a recent interview with CNBC’s post-market show Fast Money, Mark Yusko, the Founder, Chief Investment Officer (CIO), and Chief Executive Officer (CEO) of SEC-registered investment advisor Morgan Creek Capital Management, explained why Bitcoin (BTC) “should be in everybody’s portfolio.”
Yusko started his interview with CNBC anchor Melissa Lee by saying that he would not be surprised if the American stock market suffered a 12-14% loss by the end of this year, and this is why he was more excited about the emerging market countries (especially, China, Argentina, Russia, Brzail, and South Korea).
Furthermore, he believes that America’s central bank, the Federal Reserve System (Fed), is more likely to announce an interest rate cut rather than hike in the near future, which suggests to him that the Fed expects some kind of recession (at least, a light one, such as the recession of 2001).
Another host, Fast Money trader Brian Kelly, the founder and CEO of crypto hedge fund BKCM LLC, then said to Yusko that this this sounds “terrible” for most U.S. investors, and asked where would be the best place for them to put their money, before saying “Please say Bitcoin!”.
The Morgan Creek CEO replied “I would definitely say Bitcoin!” before reminding the hosts of the show about Morgan Creek’s “Buffett Bet 2.0” challenge, which Anthony Pompliano, a Founder and Partner at Morgan Creek Digital Assets, first told CNBC about on 6 December 2019.
You see, legendary U.S. investor Warren Buffett won $1 million in 2017 by betting that the American stock market index S&P 500 (SPX) would perform better than a group of 5 managed funds. However, unlike Buffett, Morgan Creek is betting against the S&P 500, and says that it is willing to bet $1 million that its basket of cryptocurrencies, the Digital Asset Index Fund, will outperform the S&P 500 over the next 10 years, with the understanding that the winner would donate the money to charity (just as with the Buffett challenge).
Yusko said:
“We got no takers. Now, it's a good thing they didn't take it because Bitcoin is up over 100% this year, the S&P is up over 14%, but going forward here, even over the next year, the next 10 years, it's not going to be close.”
He then explained why:
Bitcoin is a great diversifying asset. It has very low correlation [to stocks]. It should be in everybody's portfolio.”
On May 9, Yusko said, during an interview with news anchor Layah Heilpern on BloxLive TV, that he saw Bitcoin as digital gold, and he expected its price to reach around $400,000 within a decade.
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