Peter Schiff Forecasts The Demise of Cryptocurrency; Here are Three Assets he Prefers in its Place
The phrase "crypto winter" is currently trending due to the sharp decline in cryptocurrency values and the demise of the cryptocurrency exchange FTX.
However, according to Euro Pacific Capital CEO and Chief Global Strategist Peter Schiff, such a phrase does not adequately characterize the circumstance.
This is not a winter of crypto. That suggests the start of spring. Additionally, this is not a crypto-ice age, as even it ended after a few million years, the author notes in a tweet. "This is the end of crypto."
That is a serious caution. However, Schiff has previously raised the alarm.
While a temporary move up to $100,000 is feasible, a permanent move down to zero is certain, he remarked last year when bitcoin touched $50,000 and the upward trend seemed unstoppable.
If you hold the same opinion, you may be curious about where Schiff is hiding out in this horrible market.
Let's look at some noteworthy themes in Schiff's portfolio since Euro Pacific Asset Management has just published its most recent 13F filing, a report that institutional investment managers submit every quarter to disclose their holdings.
READ: This Week in Coins: Has the Worst of the FTX Damage Passed? Bitcoin and Ethereum Stable
Gold
The golden metal has long been a favorite of Schiff's.
He once observed, "The problem with the dollar is that it has no intrinsic worth. "Gold will hold its value, and you may always use it to purchase additional food."
Schiff really stated in a tweet on the demise of cryptos that gold "will rise again to lead a new breed of asset-backed cryptos."
He is, as usual, backing up his words with deeds.
1.655 million shares of Barrick Gold (GOLD), 431,952 shares of Agnico Eagle Mines (AEM), and 317,495 shares of Newmont Mining Corporation were held by Euro Pacific Asset Management as of September 30. (NEM).
He is, as usual, backing up his words with deeds.
1.655 million shares of Barrick Gold (GOLD), 431,952 shares of Agnico Eagle Mines (AEM), and 317,495 shares of Newmont Mining Corporation were held by Euro Pacific Asset Management as of September 30. (NEM).
In actuality, Barrick, which made up 6.8% of the company's portfolio, was its top position. The third and sixth-largest holdings, respectively, were Agnico and Newmont.
Like fiat currency, gold cannot be created out of thin air, and because it is a safe haven, demand usually rises when things are uncertain.
Miners like Newmont, Barrick, and Agnico will probably make more money if gold prices rise.
Recession-Resistant Income Stocks
Although some dividend stocks can be used as a hedge against recessions, dividend stocks are a terrific way for investors to generate a passive income stream.
A prime example is British American Tobacco (BTI), which is the second-largest position at Euro Pacific and makes up 5.3% of the portfolio.
The producer of Kent and Dunhill cigarettes distributes 74 cents per share in quarterly dividends, giving the stock a desirable annual yield of 7.6%.
Over 157,766 shares of Philip Morris International (PM), another tobacco monarch with a dividend yield of 5.4%, are also held by Schiff's fund. Euro Pacific's seventh-largest position, with a 3.5% share in the portfolio, is the maker of Marlboro cigarettes.
Because the demand for cigarettes is so inelastic, major price adjustments only cause modest changes in demand, which makes this market relatively resilient to economic shocks.
British American and Philip Morris may be worth looking into further if you're okay with investing in so-called sin companies.
Those who want to manage their finances should undoubtedly check into internet trading platforms. The finest websites provide tools and resources to assist investors in building and managing their investment portfolios and making educated decisions.
Agriculture
Agriculture is one recession-proof industry that shouldn't be disregarded when playing defense.
It's easy. No matter what, people still require food.
Schiff talks about precious metals more than agriculture, but Euro Pacific does own 124,818 shares of fertilizer manufacturer Nutrien (NTR).
Even if the economy experiences a severe downturn, Nutrien is well-positioned as one of the top global suppliers of crop inputs and services. The corporation produced record net earnings of $6.6 billion in the first nine months of 2022.
In contrast to the S&P 500's double-digit year-to-date fall, Nutrien shares are up around 3% in 2022.
Given the economic uncertainty, investment in agriculture can provide reassurance to risk-averse investors.
Source: Financialpost.com by Wise Publishing
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