The co-founder of Morgan Creek Digital, Anthony Pompliano, is laying out his top investments over the next 18-24 months.
In a new letter to investors, the outspoken crypto proponent says Bitcoin (BTC) is his number one pick to surge in the aftermath of the coronavirus pandemic, giving it a score of 11/10.
Pompliano points to Bitcoin’s halving, which will cut the rate of new BTC entering the market in half, as a stark contrast to increased money printing and quantitative easing from governments around the world.
“You have a positive demand shock happening at almost the exact same time that you have a negative supply shock. This is going to be rocket fuel for the decentralized digital currency.”
As for his price targets, Pompliano says he believes BTC will land between $20,000 and $100,000 over the next two years.
The second-best investment, according to Pompliano, is equities. He gives stocks an overall rating of 8/10 and says the recovery will be different for sectors that are directly impacted by the novel coronavirus.
“The big risk here is that these companies could go bankrupt because most of their revenue has evaporated. I am not a believer that this will happen. Instead, it is more likely that we will see significant consolidation in sectors overlaid with government assistance to prevent the destruction of entire industries.
Stocks looking cheap to Pompliani include hotels, airlines, and food sectors.
As for oil, Pompliano gives it a 5/10 rating, and says ultimately the commodity is too risky for him, especially compared to other opportunities that are emerging from the global economic pullback.
Finally, Pompliano gives gold a surprising 3/10 rating. Although he believes assets that hedge against inflation will do well over the next two years, he doubts there is enough upside to investing in the popular precious metal.
“I could see gold outperforming current expectations and easily eclipsing $2,000. I don’t think we see it move over $2,500 in the next 24 months though. This means that an investor would be looking at 35% to 65% return over the next 24 months. Most investors would salivate over these types of returns in normal times, but this will likely be underperformance compared to other assets during the same time period upcoming.”
Pompliano says his picks are not investment advice and notes everyone should do their own research, buy only what they can afford to lose and realize they could lose their entire investment. You can check out his complete analysis here.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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