Financial freedom show “InvestAnswers” says that Bitcoin is probably the best to “hedge your portfolio right now.”
In a video released on July 10, the anonymous host of InvestAnswers told the 442K subscribers of YouTube channel “InvestAnswers” that the world’s economy is in a precarious position. The host dismissed claims from certain pundits that U.S. GDP has remained strong, noting that the U.S. economy has “screeched to a halt,” and that all markets had been “crushed.” He claimed that consumer confidence has reached a record low, concluding that we are now in a “full-blown recession.”
While the show’s host was somewhat positive on the U.S. dollar’s performance through the first six months of the year, especially when compared to other currencies around the world, he ultimately concluded that the time to hedge was “definitely earlier this year.”
He warned that investors would need to look to hard assets, such as Bitcoin, in order to weather the coming storm of the recession.
As reported by The Daily Hodl, the show’s host said,
That’s the way you hedge your portfolio right now. That will preserve your buying power despite the fact it’s still considered a risk-on asset and still tanking with everything else… That’s probably the safest bet. Stay away from the fiat currencies. They all have problems.
In a YouTube video released on June 26, the InvestAnswers host said that Bitcoin will likely still offer an attractive return on investment (ROI) compared to other assets.
He compared BTC to the dividend producing stock of tobacco company Philip Morris (NYSE: PM). Despite being the top blue-chip dividend stock on the market, the host mentioned that the stock price had fallen from $120 five years ago to roughly $100. Even with the 4.8% yearly dividend, the InvestAnswers host argued that investors would have made no return from their five-year investment, and lost purchasing power during that time.
As reported by The Daily Hodl, he said,
Very important to remember, that $120 you invested five years ago has less than $80 dollars in purchasing power today. So $40 of that $120 is gone because of debasement of the currency. It’s still denominated in US dollars, and that’s the problem.
Despite the recent crypto market crash, InvestAnswers highlighted that Bitcoin is up 728% over the last five years, with five-year returns reaching 2,600% at BTC’s price peak in November 2021.
As noted by the analyst, a small allocation in Bitcoin over a long period of time has provided a disproportionate return to an investment portfolio, even with the volatility. He told viewers that he would still hold Bitcoin at age 60, due to the attractive risk-reward-ratio.
Would I still hold Bitcoin? Yes, because I can’t find better risk-rewards out there. It’s that simple. Especially at these prices. Not financial advice.