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. It also highlights 6 assets to invest in Cryptocoin. com we are citing Kemp’s interview…
Advice to crypto investors from Dan Kemp
“The new group of investors is likely to hold a very large portion of their holdings in crypto, and they will see significant gains from that,” Kemp said. But they’ve only invested in crypto, and as we’ve seen this year, there is a wide variety of potential crypto implications. “Crypto won’t go up forever, so investors need to consider how exposed they are if it doesn’t.” Diversification can protect an individual investor’s portfolio from macroeconomic 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 Kemp shared were UK stocks, Japanese stocks, Chinese stocks, financial stocks, energy stocks and bonds.
First, he argued that two developed markets outside the US – the UK and Japan – offer unrelated returns for crypto investors. Despite concerns surrounding debt defaults by Chinese real estate developer Evergrande, 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 young investors should particularly look to diversify fixed income if concerns about the stock market crash escalate.