David Einhorn is a value legend on Wall Street, who foresaw the Lehman collapse and is known for his meticulous research. But the performance of his fund has been below average in recent years. He missed the trend towards cryptocurrencies and tech stocks.
Now the fund manager commented in the CNBC interview and in detail in a letter to his investors. What he likes about gold is that it is a kind of currency that always stays the same. Crypto, on the other hand, he perceives as “complicated” with constantly emerging technologies and coins. However, he takes his hat off to Bitcoin, which has developed “extremely well” and can continue to do “extremely well” in the future. What he does not mention: As a classic and store-of-value, Bitcoin is a relatively stable technology that stipulates that the number of pieces does not change much.
NFT boom and inflation: government “doesn’t lift a finger”
Einhorn also settles accounts with the government’s monetary policy. Fed President Jerome Powell is frustrated with rising prices, but “doesn’t lift a finger” to curb high inflation. He assumes that the price increases are not temporary as hoped for by currency guardians, but “persistent”. One reason has been neglected investments in raw materials such as oil for years, which now lack capacity. In addition, salaries would also increase in the foreseeable future, as companies, with the help of NFT marketing, would have to offer more and more to lure “young people who earn so much money with NFTs and shares” away from home to an office.
By the way: In its new issue, the SHAREHOLDER Hot Stock Report recommends a direct beneficiary of the NFT boom: A cult brand that everyone knows and that could now gild millions of images via crypto-certified NFT.
Leader “not ready”
Will the boom in scarce assets end because governments are fighting inflation? David Einhorn is under no illusions. Leaders are not prepared to accept a recession by ending money printing. The comeback of Einhorn’s value approach will probably be a long time coming and instead, tech and cryptocurrencies will remain in focus.
At the beginning of 2016, the SHAREHOLDER Hot Stock Report drew its readers’ attention to the approaching new “wave of Bitcoin”. Meanwhile, Bitcoin is around 10,000 percent higher. Feel free here and receive all transactions early by SMS and e-mail.