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Today’s blog is a bit different and a bit special. Today, instead of us telling you about our views on the markets, we’re gonna have a special guest in the form of Anthony Scaramucci with us to tell us about his views on the markets.
We’ll ask him questions to see whether he predicts a stock market crash in 2021, his views and predictions on bitcoin, as well as other cryptocurrencies, and all things finance.
While a lot of people associate Anthony Scaramucci with only political stuff, he’s actually a top-ranking investor and was, in fact, ranked no. 85 in worth magazine’s power 100, the 100 most powerful people in global finance. That alone tells you why his views should be listened to.
So if you’re interested, then let’s dive right in!
Anthony Scaramucci on Stock Market and Bitcoin
Q. Do you see a market crash in 2021?
Does Anthony Scaramucci see a market crash going forward in 2021? He says it’s very unlikely. The only way we can see a crash again can be due to some negative externality, something worse than the pandemic, or a 3rd or 4th wave of coronavirus can lead to a similar fall that we witnessed in the first half of 2020. But again, it’s very unlikely to happen.
Right now, Anthony’s views on the markets are very positive. In his own words, “You’ve got a combination of vaccines on the way, lots of liquidity, federal reserves, which is basically full tilt on monetary production, robust monetary supply, and then you’ve got a combination of what I believe to be a byproduct of some stimulus sometime in the first quarter of 2021. So I don’t see it (the crash).”
But as cautionary words, he says that the probability can’t be completely ruled out. In his words, “The problem with our lives is, anything that you think cannot happen, invariably does happen.” Giving an example of what happened to us in 2020, Anthony says most of us, including himself, didn’t expect it to be this calamitous, but apparently, we were proved wrong.
Q. Right now, everyone is super excited about the vaccine, but could this be the “buy the rumor” phase where we could see a sell-off once the vaccine actually hits the market?
It can be, but Anthony doubts it. With an example of the previous pandemic in 1918, Anthony explains that due to suppressed demand during the pandemic, the earnings of the companies are lower, and prices seem overvalued. But as the earnings get back to normal, things recover and we can witness a rally as we saw from 1920 to 1923.
Similarly, as we return to normalcy now, the demand will catch up, and the earnings will accelerate in a way that may surprise people. In his own words, he says, “People wanna get out of the house, people wanna go shopping, they wanna go to the mall and restaurants, so I don’t think we’re gonna see a huge sell-off.” In fact, he sees an up move in the prices.
According to Anthony, there are various parallels that could be drawn to different types of crisis where people come out of the crisis, and they spend money which leads to increased consumption and earnings.
Q. We heard that your investment firm, SkyBridge Capital, is investing in cryptocurrencies. Is that true?
On cryptocurrency and Bitcoin, Anthony says that they do not have any Bitcoin exposure as of now, but they may do so in the future. There are also some thoughts around SkyBridge Capital potentially launching a fund around cryptocurrency.
Talking about his views on cryptocurrency, Anthony has spent 2 years researching & getting comfortable with the idea of cryptocurrency, and he doesn’t regret that time spent because he still thinks it’s the early stages for things like bitcoin.
Anthony believes that there’s a very high likelihood that cryptocurrencies will be accepted as stores of value like gold & silver, and we’ll have to eventually accept them as well.
UPDATE: SkyBridge Capital has recently launched their Bitcoin fund and invested $310 million in it. Also, in a statement, Anthony has claimed Bitcoin to be a better investment than gold.
Q. Any tips for our viewers and readers?
“The big thing for your viewers and listeners is you wanna be long term,” says Anthony. Because what happens a lot of time with money is our emotions take over, which leads us to make greed-based or fear-based decisions with our investments.
A better plan according to him is to have a long-term plan and stick to it. Have enough diversity in your plan that no matter what happens with externalities like the economy, government policies, etc., your money keeps growing.
Q. As you mentioned being fired from the Whitehouse, a question our viewers want us to ask you is, how does it feel?
“It sucked!” Anthony says outright. But he also accepts full responsibility for the mistake that he made and admits his fault. He also says that he “frankly deserved being fired for that.” Anthony’s advice is that if you’ve done something fireable for which you’re fired, then own it. Don’t try to pretend it was someone else’s fault, and be accountable for what you did.
Also, he states that It was a tough period in his life, for all the media and public attention he was getting, and for all the wrong reasons. He was also going through some personal problems with his wife at that time which made the situation even worse for him.
Finally, as some words of motivation, he says that “when you’re having a bad time, see it through. Don’t be overly bummed out in bad times, and overly excited in good times, because nothing is ever as bad as it appears, and nothing is ever as good as it appears.”
And with that, we wrap up this interview and thank Anthony for his inputs. We hope that you learned something new today with us. Now, If you’re interested in building a long-term investment strategy, as Anthony mentioned, then you can check out my free on-demand masterclass today, the link is below 👇