The Truth About Crypto: Financial Advisor Recommends Increased Allocation to Digital Assets
Renowned financial advisor Ric Edelman, author of the 2021 book “The Truth about Crypto,” has made headlines with his recent shift in recommended investment strategies. According to CNBC, Edelman, who previously advocated for a 1% allocation to crypto, is now advising financial advisors to consider allocating between 10% and 40% of their clients’ portfolios to digital assets.
In an interview with CNBC’s Crypto World, Edelman expressed his bullish stance on crypto, stating, “Today I am saying 40%, that’s astonishing. No one has ever said such a thing.”
As the founder of the Digital Assets Council of Financial Professionals, Edelman’s increased optimism towards crypto assets is driven by the significant evolution in the industry. He highlighted that the uncertainties surrounding Bitcoin and the broader crypto market four years ago have been largely addressed, transforming digital assets into mainstream investments.
Edelman emphasized the changing landscape of long-term investment strategies, particularly in the context of increasing life expectancy. With Americans living longer, the traditional 60% stock and 40% bond allocation may no longer suffice. He compared today’s 60-year-olds to yesterday’s 30-year-olds, advocating for higher exposure to equities for better returns.
Regarding Bitcoin’s role in a diversified portfolio, Edelman pointed out its non-correlation with traditional asset classes, making it a valuable diversifier. He also highlighted the potential for digital assets to outperform stocks, bonds, and gold, offering superior returns to investors.
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Image Credit: Midjourney