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Wharton’s Professor Warns About Inflation, Says Gold Was Replaced by for Millennials

Jeremy Siegel, finance professor at Wharton, spoke about several markets that investors should have exposure to during an interview with CNBC Friday.

Siegel is Russell E. Palmer Professor Emeritus of Finance at Wharton School, University of Pennsylvania. His specialties include financial markets, demographics, macroeconomics, and long-run asset returns.

When asked about gold and commodities as investments from now on, he declared that gold “has been disappointing,” and that “it’s a fact that the young generation is regarding bitcoin as the substitute” for gold.

He further stated:

“Let’s face the fact, I think bitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold … Digital coins are the new gold for the millennials. Old people remember the 1970s. That inflation time, gold soared. This time it is not in favor.”

He also declared that investors need to have exposure to commodities, which he opinioned could be done by deciding to invest in emerging markets because they are commodity-sensitive.

Professor Siegel also touched on the subject of inflation, a topic he discussed many times in recent years:

“I’ve been saying this for a long time. I’ve been warning about inflation for a year and a half. The Fed and the fiscal authorities so way overdid it, particularly the Fed on liquidity. They are so far behind the curve that we have a lot of inflation that is embedded in. The Fed is going to have to hike many more times than what the market expects.”

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