Digital Assets Weekly: April 3rd, 2020
Please see important disclosures at the bottom of this report
Portfolio Strategy
Howard Marks, the CIO of Oak Tree Capital said something this past week that caught my attention:
“There’s no argument for spending all your money now, but there’s also no argument for not spending any.”
In many respects, this statement summarizes my continued view on the crypto markets. We’ve been recommending investors have exposure to the crypto markets for the past few months. Following the recent sell off, we started recommending investors overweight crypto during the next 3-5 years by being allocated somewhere between 1% to 2% vs. its market weight of 0.01%. Our advice has been to adjust allocations more aggressively or defensively between these ranges as P/CMR valuations are more or less attractive.
Another statement from Howard during a recent interview:
“The outlook for the economy is weak. The outlook for the disease is bad. On the other hand, there’s good value in the markets. I liked them before they went up today more than I do now.”
Similarly, Bitcoin’s March 13th price pull back took us to levels where we saw good value in markets. Prices have rebounded a bit. We still see some risks. We prefer getting most aggressive in the 4x t...Reports you may have missed
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