Gold will hit records because of coronavirus: Hedge fund manager

let's bring in famed hedge fund manager Mike Novogratz he's the founder and CEO galaxy digital his clean shaven today by the way for those of you listening on the radio Mike it's always great to see you great seeing you in terms of gold what's your thesis here new highs driven by what listen just the macro setup is so perfect for something like gold the Fed Reserve and central banks around the world just keep printing money more money more money more money and so Gold's gonna take out the old highs with 1950 or something and it's gonna keep going I think we're just starting this move is this any sort of a hedge or is this independent of your thesis than the markets you know it's listen I think we're in irrational exuberance tone on the markets but it's hard to figure out where that stops so you look at a stock like Tesla or or any of the stories of stocks they're beyond what would normally be seen as a huge move and you can't use a discounted cash flow model to come back to anything rational that's cuz there's so much liquidity and their store of value is just like gold store values and so you don't know where it ends a good friend of mine said hey get on the airplane just make sure you're on the seat closest to the accent we're we're in a we're in a bubble I think you could see stocks and gold decouple at one point right where we've got an election coming up I think Biden's gonna get win by a landslide and I think he's gonna jack up capital gains taxes to ordinary income he's gonna announce that this week quite frankly that will be good for the stock market but they're gonna continue to pump in liquidity and so gold I also love Bitcoin for the same reason core core holdings of mine that I think are were early in this cycle Mike it's Karen thanks for being on the show so you mentioned Bitcoin and gold if you have there's a lot of overlapping elements to the thesis and inflation fiat currency kind of run amok which of the two do you think will do better if we start see inflation really kind of kick in - it's not in high gear in any gear it's like it's a little affair to compare because bitcoins of 50 60 vol acid and golds you know 1/5 of that and so I think Bitcoin will outperform gold because we're early in the adoption cycle right more Bitcoin still hard to buy right if it was easy to buy it would be a lot higher and there's more and more people working on making it easier to buy funds being set up custody being done at one point we'll get an ETF and so my sense is Bitcoin way outperforms it but I would tell people to have a lot less Bitcoin than they do gold just because of the volatility hey Mike it's Tim you've seen multiple commodity cycles or at least you know the last couple which are probably now 10 to 20 years back you know gold silver ratio looks interesting to buy silver - but other commodities here some of the same in a set up works for copper and possibly even for oil what do you think listen I I think oils its own story I think there'll be supply constraints you know we took so much supply off that if the economy comes back if Koba doesn't crush as you could see oil spike back to the to the high 50s and maybe even $60 but it's a bit of a different thesis and so I think simple is to play gold silver Bitcoin in this monetization thesis copper is gonna still be tied more to the real economy and the real economy has got issues you know certainly in the US we're stumbling through this kovat you know yeah you I was in Las Vegas a few weeks ago and already the numbers are down from a few weeks ago because of the kovin resurgence so we're having a hard time getting a lot of our economy restarted you can't travel abroad or you're at American I was gonna go to Greece they said no you can't come and so I just don't see you know this is a word of we're in a fairy Goldilocks or a fairy tale world because the Fed is just giving us so much money you know disposable income is up on the air not down which makes no sense intuitively and so it's hard to say where markets end but you don't really want to bet on things that are geared to the real economy hence bank stocks getting crushed right via realist Mike and in the past you said you've traded you trade the sp500 range and wondering if that range has changed at all and you also mentioned some of these momentum story stocks like Tesla I mean this is the market we have have you been in any of these traits recognizing that momentum is carrying these stocks beyond what their fundamental state might be you know a little bit I didn't make nearly as much money as someone who would have got to got went all in and went bullish on the thesis I fought it for a while then quit fighting and listen I have a ton of Bitcoin and Bitcoin as part of that story though it hasn't done as well and I have a bunch of gold stock wise I haven't done as well and in fact I you know courageously try to short Tesla you know yesterday and today and we'll see just it feels like 37% in 3 days was too much and so I'm still picking some spots to be short very short term on that stuff I haven't played the big momentum and and so my friends are getting richer than I am all right there's still time let us know how you're doing thanks you

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Length: 5min 43sec (343 seconds)

Published: Wed Jul 08 2020