Anthony Scaramucci says, “We are not yet in a literal annihilation panic.” He predicts how low the stock market could drop and shares what investors should do in stocks and crypto. Also, Scaramucci, who survived 8 bear markets, explains the altcoin project in which he took a giant position.
“Bear comes to town every five years, stock market crashes”
In the real world, bulls and bears live in different environments. But they change places in the stock market. The bear comes to town every five years, the stock market bottoms out, and the villagers, or in this case investors, rush into the hills. Anthony Scaramucci, founder of investment firm SkyBridge Capital, says he has experienced eight bear markets and expects a drop.
Variables seem eligible for a fix. He notes that inflation is above 8%, interest rates are rising, and the largest companies are lacking in earnings, especially in the retail sector. According to Scaramucci, what could be different this time around is that we won’t see any relief from the Federal Reserve.
Scaramucci believes interest rate increases will continue until consumption slows or something goes wrong, which is the case when Lehman Brothers filed for Bankruptcy in 2008. It causes ‘to say ‘enough’. He speaks of this moment as a perfect storm of negativity. He says that if we do go into a recession, it will take about 12 to 16 months, according to historical trends. As for the stock market, not quite sure where the bottom is.
“This stocks and cryptocurrencies opportunity in a bear market”
By the way, the question is, what are you doing? “People aren’t going to like what I’m about to say,” says Scaramucci, giving the tip: ‘Do nothing!’ Instead, he says, investors should average dollar costs across a wide range of stocks on a monthly basis. The irony of the ironies is that you make money in a bear market because you buy more shares for less, he adds. Scaramucci sees these stocks and cryptocurrencies as opportunities:
Currently, four leading US tech companies are Meta (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet. Referring to (GOOG), FANG Stocks lost at least 20%. If you have a stomach, it’s a great opportunity to pop in. I love technology. Frankly, I love cryptocurrencies. I want to buy these areas right now because I think they are very cheap.
Another stock that dropped significantly is Coinbase (COIN). According to Scaramucci, with a share price of about $64, it’s ridiculously cheap given its cash and earnings on the balance sheet. Scaramucci says he has a reasonably sized position in this stock. Coinbase is down nearly 80% from its November all-time high of $343. The crypto exchange peaked with the overall crypto market and pulled back with it. On Tuesday, the COIN is trading around $66.
“Stay with quality assets when buying altcoins”
When buying crypto, look for quality assets like Bitcoin, which already has a steep correction Stay connected, he says. As Kriptokoin.com , the price of Bitcoin also peaked in November 2021 and briefly reached $70,000 before dropping by about 57% to date. As of today, it was trading for just under $30,000.
Historically, Bitcoin tends to go deeper, about 82% to 85%, according to analysts. In December 2017, the crypto touched $20,000 before dropping to $3,200. When asked how low Bitcoin can go, Scaramucci says anything you think can’t happen in the markets, he says. Giving examples from the stock markets, Scaramucci notes that the same is true for Blockchain technology and advises:
If you believe that this is the future of financial innovation and that it will be used for trading, then you can invest in assets like Bitcoin and the leading altcoin Ethereum. you must have. If you don’t believe it, you shouldn’t have it.
“But I think it will happen,” said Scaramucci, stating that this is a seismic leap into the future. “I think this is the biggest innovation we’ve found since the worldwide internet, and in the days of the world net, a lot of people, including Bill Gates, said it was a fashion,” explains Scaramucci.
Altcoin in which Scaramucci takes a huge position: Algorand (ALGO)
The altcoin in which he takes a large position is Algorand (ALGO), a Tier-1 project. Scaramucci says he was impressed by the altcoin project’s founder, its technology, and the community that was built on it.
A worrying point for Scaramucci, who noted that overall, investors need to be able to withstand the volatility that comes with this industry, is the lack of market liquidity in crypto. Scaramucci states that a small amount of capital can sink the entire market and explains his view as follows:
This was seen when Terra’s ecosystem collapsed. Just one Bitcoin sale from Luna Foundation Guard’s (LFG) reserves caused the price of BTC to drop by 25%. The sale was an attempt to stabilize the network’s stablecoin, TerraUSD (UST), but it had a ripple effect on the overall market. This is why there is so much volatility in the crypto market.
