Dan Kemp, chief investment officer of Morningstar Investment Management, which manages $260 billion in assets, claims that the time is right for millennials and millennials to move away from cryptocurrencies. We also draw attention to 6 assets that can be invested We quote Kemp’s interview atKriptokoin.com …
Advice for crypto investors
Kemp said, “The new group of investors is likely to hold a very large portion of their assets in crypto, and they will see significant gains from it. But they’ve only invested in crypto, and as we’ve seen this year, there are a multitude of potential crypto implications. “Crypto won’t rise forever, so investors need to consider how exposed they are if it doesn’t.” A variety of pricing can protect an individual investor’s portfolio from macro factors such as inflation.
Kemp acknowledged that convincing investors to move away from crypto is often a difficult task due to the strong emotional investment rating in this market. Kemp talked about “less trendy” markets, sectors, and asset classes that young investors can use to protect their crypto-heavy portfolios from a potential collapse. The six types of assets that Kemp shares are UK stocks, Japanese stocks, Chinese stocks, financial stocks, energy stocks and bonds.
He first argued that two developed markets outside the US – the UK and Japan – offer unrelated returns for crypto investors. Despite concerns surrounding Chinese property developer Evergrande’s series of debt defaults, Kemp said Morningstar is also bullish on China as emerging markets’ investment game. Kemp said finance and energy are two of the strongest capital sectors to target right now. Finally, Kemp recommended bonds that offer low percentage returns at low risk. He said that if concerns about the stock market crash escalate, young investors should especially look to push a variety of fixed income.