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https://www.youtube.com/watch?v=/xSiwlUTcoXs
Eugene Fama, a 2013 Nobel Prize winner in economics and professor of finance at the University of Chicago, says Bitcoin and gold are not good long-term investments.
This is a case that the market has not grasped. [Bitcoin] Not worth it,” he said. I dont think even the scammers are trading or holding at this point.
As for gold, Fama says gold is a “very volatile price” and “a terrible hedge against inflation as the price fluctuates too much compared to the prices of goods and services”.
Fama, the 2013 Nobel laureate for his work on asset pricing, portfolio theory, and the efficient market hypothesis, spoke with Kitco News anchor and producer David Lin.
inflation and the US dollar
US headline inflation was 8.5% in June, the second highest in 40 years. Mr Fama said he was “very” worried about inflation.
To deal with inflation, “In the old days, [The Fed] We will reduce the supply of reserves,” Fama said. But now we think we can do that by raising the interest rate on reserves, making people less willing to hold other assets or do something elsebut the problem is how high the interest rate is.
Fama said even if the Fed raises interest rates to high levels, “we don’t know if it will work at all” to correct inflation because “this system didn’t exist before”. I was.
He added that if he were Fed Chairman Jerome Powell, “I would have a different job.”
efficient market?
The Efficient Markets Hypothesis (EMH) is closely related to Pharma, who received a Nobel Prize for his work in this area. EMH argues that it is impossible to beat the market on average because all available information is already factored in.
“The main meaning is [EMH] What investors have is that you can’t beat the market,” said Fama. So basically passive investing is the way to go.
He added a caveat that “markets are not efficient as far as insiders are concerned” and noted that insider trading can weaken EMH.
Regarding the impact of EMH on funds under management, Fama said:
As for technical analysis, “I don’t mean to insult you. [but] Basically, I think it’s a hopeless activity. “
Watch the video above for Fama’s thoughts on the biggest risks to the global economy
Follow David Lin on Twitter. @davidlin_TV
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Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kikko Metals Co., Ltd. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the authors can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation of an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article accept no liability for loss and/or damage resulting from the use of this publication.
