August 17, 2020
Former Prudential Financial CEO George Ball advises wealthy investors to purchase bitcoin because it is the individual quality that cannot be destabilized by the government. Ball made the statement while discussing modifications that investors need to create to their portfolios.
Currently CEO at Sander Morris Harris, Ball spoke in a video call where he also gave investment tips. Clarifying current sources of investor concern, Ball says the global pandemic “COVID-19, which will be with us in the first quarter of next year” and the U.S. elections are two questions in the minds of the investors.
However, he believes that the U.S. election is a given and that markets have already stewarded in a Biden win. As a substitute, Ball ponders “markets are looking for or waiting for a new spark” adding that he assumes this to happen “at night, right after Labour Day.” The CEO believes the best time to readjust stock portfolios would be right before this scheduled spark.
Remarking on his new stance on bitcoin, Ball expresses to his interviewer why he has now become a bitcoin convert:
“I’ve never said this before, and I’ve always been a blockchain, cryptocurrency and bitcoin opponent. But if you look now, the government cannot stimulate markets forever, the liquidity flood will end.”
The borrowed money must be repaid when this government assistance program comes to an end. Consequently, the serious question according to Ball, is how the government is going to finance this reimbursement.
“Are they gonna raise taxes that high or if not, are they going to print money? If they print money that debases the currency and probably even Treasury Inflation-Protected Securities (TIPS) can be corrupted,” said Ball.
Faced with this probable outcome, the very wealthy investor or the trader will “probably turn to bitcoin or something like it as an alternative.”
In the meantime, Ball also dispels the idea that by buying bitcoin, shareholders are trying to avoid tax responsibilities. He says an investor’s main concern is keeping wealth from an inevitable money printing which renders a currency worthless.