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Investors are naturally concerned about how the upcoming U.S. election in November might affect their portfolios. Michael Novogratz, who is known for being bullish on Bitcoin (BTC), believes that it is dangerous to be in the stock right now.
On last week’s episode of CNN’s “Markets Now,” Galaxy Digital CEO Michael Novogratz expressed his views on what the best investment vehicles are as the presidential election approaches. “I think in the short run we saw the high in the Nasdaq, we saw the high in Apple, we saw the high in Tesla,” the billionaire investor said. CEO said, according to Bitcoin.com. However, he believes that can go lower as election day approaches and “can easily trade down to 10,000, another 10%, 11% down from here.”
Novogratz also believes that volatility would get higher in the stock market as well. “I think it’s a really dangerous time to be in the market,” the Galaxy Digital CEO 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.”
The billionaire also believes that the stock market might be affected if Biden wins the presidency. “There will be a time to buy stocks again but I think with this election literally 40 days away, if Biden wins, he’s raising taxes and he’s raising capital gains tax, most specifically. The market is not going to digest that well,” Novogratz added.
In the face of such uncertainty, Novogratz believes that placing a certain percentage of the funds in BTC would be a wise move. “Yes, yes. The average investor should have 1% to 3% of their portfolio in bitcoin. It is an amazing hedge,” he replied when asked an average investor should own Bitcoin.
The Galaxy CEO expressed his preference for Bitcoin over gold. However, he also admitted that for most people, it’s a lot easier to buy gold than BTC.
“I think gold and bitcoin are very similar assets. Why I like bitcoin better is that it’s much earlier in the adoption cycle,” Novogratz said. “If you want to buy gold, you know how to buy gold. It’s still a pain in the rear to buy bitcoin. And so there are firms like ours and Fidelity and plenty of them that are working overtime to make it easier for people to buy … and feel safe owing bitcoin.”
Novogratz believes BTC’s price could soar to $50,000 two years from now. “I am a real bull on gold,” he explained. “I’m a real bull on bitcoin. I just think bitcoin’s got more upside.”
