https://www.youtube.com/watch?v=/bSH4pueyL6g
As the Federal Reserve continues to raise interest rates, investors should expect markets to “break,” said Clem Chambers, CEO of Online Blockchain.
“If [The Fed] really want to drive out inflation, something has to break,” he said. “If they really want to, there will be a strong crisis.”
Chambers said that stocks and crypto, assets that have a big decline in 2022, are in a “coming storm,” before a big crash.
“Everybody remembers the big crash in 2008, but there was a bear market in 2007, a storm coming,” he said. “I think what we’re in now could be the next storm.”
Chambers spoke with David Lin, Anchor and Producer at Kitco News.
Investing in Bear Markets
Some analysts have suggested that stocks and crypto are facing a bear market. Chambers said that as a hedge, he carried a heavy cash position, although his assets were “eaten by the moths of inflation.”
“I’d rather have my money in Benjamins than in Facebooks,” he said, implying that the currency would have less buying power than similar currencies.
He said his plan is to wait for the market to bottom out, then “stack in,” using the savings to buy real estate.
“Instead of trying to slide down the hill, put it down,” he said. “Save some cash, put it down, then accumulate it.”
However, he suggested that if investors want to go long in certain assets, they should invest in “high risk” companies.
“Take some money out of your pocket and put it on the other side and [invest in] very dangerous,” he explained. “You have to look for special opportunities.”
Design and Equivalence
Inflation peaked in 2022 at 9.1 percent in June, before falling to 7.7 percent in October. Chambers says inflation is caused by too much money.
“Inflation is driven by the money supply,” he said. “If you keep printing more money because you have a bigger fiscal deficit, you’re feeding that deficit… If you’re printing an extra $1 trillion every year to fill your government policy, you will go. to get the basic, average price of 4, 5, or 6 percent.”
Although monetary policy can lead to assets, this is not always the case, Chambers said.
“Some people will say that the inflation rate means that Microsoft’s share will increase by 11 percent if the inflation rate is 11 percent,” he explained. “That didn’t work in the 1970s, the last time inflation was high. The stock market suffered because of everyone [thought] it’s a scary environment.”
To find out Chambers’s secret investment tip, watch the video above
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